Monday

19th Feb 2018

EU has survived economic crisis, Barroso says in first State of Union address

  • Mr Barroso in Strasbourg on Tuesday indicated that the worst of the crisis has passed in an upbeat, presidential-type speech (Photo: ec.europa.eu)

European Commission President Jose Manuel Barroso in a major speech on Tuesday morning said the EU has survived the economic crisis.

"Over the last year, the economic and financial crisis has put our Union before one of its greatest challenges ever ... As I look back at how we have reacted, I believe that we have withstood the test," Mr Barroso told MEPs in his first ever so-called State of the Union address. "Those who predicted the demise of the European Union were proved wrong."

Thank you for reading EUobserver!

Subscribe now for a 30 day free trial.

  1. €150 per year
  2. or €15 per month
  3. Cancel anytime

EUobserver is an independent, not-for-profit news organization that publishes daily news reports, analysis, and investigations from Brussels and the EU member states. We are an indispensable news source for anyone who wants to know what is going on in the EU.

We are mainly funded by advertising and subscription revenues. As advertising revenues are falling fast, we depend on subscription revenues to support our journalism.

For group, corporate or student subscriptions, please contact us. See also our full Terms of Use.

If you already have an account click here to login.

His remarks come after a threat of sovereign default by eurozone countries such as Greece and Spain threatened to pull apart the single currency in a potentially deadly blow to the 50-year-old European project.

Noting that "our work is not finished," the Portuguese politician put the EU's economic future at the top of his five-point agenda.

He defended the commission's push to regulate EU countries' debt levels despite rising social tension in countries such as Greece, which has seen an outbreak of violent street protests in reaction to EU-and-IMF-imposed cutbacks.

"Unsustainable budgets make us vulnerable. Debt and deficit lead to boom and bust. And they unravel the social safety net. Money that is spent on servicing debt is money that cannot be spent on the social good," he said.

He spoke up for an "ambitious" future budget, saying: "The EU budget is not for Brussels - it is for the people that you represent ... a euro spent at European level gets you more than a euro spent at national level."

With the commission to shortly publish ideas on how to raise extra EU money by, for example, directly taxing financial transactions, the commission chief attacked the culture of "pessimism" and Brussels nay-saying in some EU capitals: "I find it extraordinary that some are already rejecting them [the new budget ideas], without even knowing what they will be."

He set out a shopping list of upcoming economic initiatives.

He said Brussels will propose launching "EU project bonds" together with the European Investment Bank to help finance new infrastructure. He promised an "ambitious Single Market Act" to cut red tape for small businesses, liberalise the energy sector and boost "green collar" jobs.

He said the commission will attack risk-generating financial practices such as big bonuses, credit default swaps and naked short selling. He also promised to overhaul the "byzantine" complexity of the EU budget, in which countries give money with one hand and take it away with another, and to move to a 10-year budgeting period instead of the current seven.

In a message pregnant with references to EU values, Mr Barroso took a swipe at France's controversial policy of expelling Roma.

Without naming Paris, Mr Barroso said, to loud applause: "Everyone in Europe must respect the law, and the governments must respect human rights, including those of minorities. Racism and xenophobia have no place in Europe."

He also lashed out at Iran over the case of a woman sentenced to death for adultery: "I am appalled when I hear that Sakineh Mohammadi Ashtiani is sentenced to death by stoning. This is barbaric beyond words."

European Parliament officials tweeted during the speech that around 600 MEPs attended the event despite earlier dropping plans to fine deputies who skipped it.

Mr Barroso's call for EU countries to support the EU's new foreign relations chief, Catherine Ashton, and her diplomatic service in order to give the EU more clout on the world stage was echoed in the plenary debate following the address.

Senior MEPs began by criticising Ms Ashton for not going to the launch of Middle East peace talks in Washington last week, however. Joseph Daul, the French leader of the centre-right European People's Party did not name the British baroness, but said: "How can we justify that we are not present at the [negotiating] table?"

The leader of the Liberal group, Belgian MEP Guy Verhofstadt, chided her for not attending the Barroso speech. "It would be better if she were here," he said.

The State of the Union address, which recalls the US President's annual speech to the houses of Congress, is to be repeated every year.

Coming in the wake of the Lisbon Treaty, which is seen by eurosceptic politicians, such as British Conservative MEP Timothy Kirkhope, as a "step towards [an EU] superstate," Mr Barroso's presidential speech has also raised the question of who is the new top man in the Brussels hierarchy.

"I thought Van Rompuy was the President of the EU," a Brussels-based diplomat from one non-EU country told this website, referring to the Belgian President of the European Council.

Agenda

ECB, Budget, EU elections This WEEK

EU leaders will gather to begin talking about the 2019 election process and the post-2020 budget, while eurozone finance ministers will ponder choosing the next European Central Bank deputy chief.

Baltic states demand bigger EU budget

The leaders of Estonia, Latvia, and Lithuania say in a joint letter that they are open to talks on creating "new own resources" for a bigger EU budget after the UK leaves the EU.

Agenda

ECB, Budget, EU elections This WEEK

EU leaders will gather to begin talking about the 2019 election process and the post-2020 budget, while eurozone finance ministers will ponder choosing the next European Central Bank deputy chief.

News in Brief

  1. Merkel: Nord Stream 2 pipeline poses 'no danger'
  2. Spanish king in Barcelona next week
  3. Turkey jails journalists for life
  4. Make budget cuts in farm and regional funds, the Dutch say
  5. UN: Hungary's anti-migration bill is 'assault on human rights'
  6. Journalist Deniz Yucel freed in Turkey
  7. New organic farming bill not ready until late spring
  8. Commissioner: Western Balkans in EU is 'obvious'

Stakeholders' Highlights

  1. UNESDAA year ago UNESDA members pledged to reduce added sugars in soft drinks by 10%
  2. International Partnership for Human RightsUzbekistan: Investigate Torture of Journalist
  3. EPSUMovie Premiere: 'Up to The Last Drop' - 22 February, Brussels
  4. CESICESI@Noon on ‘Digitalisation & Future of Work: Social Protection For All?’ - March 7
  5. UNICEFExecutive Director's Committment to Tackling Sexual Exploitation and Abuse of Children
  6. Nordic Council of MinistersState of the Nordic Region 2018: Facts, Figures and Rankings of the 74 Regions
  7. Mission of China to the EUDigital Economy Shaping China's Future, Over 30% of GDP
  8. Macedonian Human Rights Movement Int.Suing the Governments of Macedonia and Greece for Changing Macedonia's Name
  9. Dialogue PlatformBeyond the Errors in the War on Terror: How to Fight Global Militarism - 22 February
  10. Swedish EnterprisesHarnessing Globalization- at What Cost? Keynote Speaker Commissioner Malmström
  11. European Friends of ArmeniaSave The Date 28/02: “Nagorno-Karabakh & the EU: 1988-2018”
  12. European Heart NetworkSmart CAP is Triple Win for Economy, Environment and Health

Latest News

  1. EU asks charities to explain anti-abuse measures
  2. ECB, Budget, EU elections This WEEK
  3. EU states stay mute on implementation of mercury bill
  4. Baltic states demand bigger EU budget
  5. Germany raises concerns over Hungary's 'Stop Soros' bills
  6. EU ties Brexit transition talks to divorce agreement
  7. EU divided over Western Balkan enlargement
  8. Facebook and Twitter weak on protecting users, says EU

Stakeholders' Highlights

  1. European Free AlllianceEFA Joined the Protest in Aiacciu to Solicit a Dialogue After the Elections
  2. EPSUDrinking Water Directive Step Forward but Human Right to Water Not Recognized
  3. European Gaming & Betting AssociationGambling Operators File Data Protection Complaint Against Payment Block in Norway
  4. European Jewish CongressEJC Expresses Deep Concern Over Proposed Holocaust Law in Poland
  5. CECEConstruction Industry Gets Together to Discuss the Digital Revolution @ the EU Industry Days
  6. Mission of China to the EUChina-EU Relations in the New Era
  7. European Free AlllianceEnd Discrimination of European Minorities - Sign the Minority Safepack Initiative
  8. Centre Maurits Coppieters“Diversity Shouldn’t Be Only a Slogan” Lorant Vincze (Fuen) Warns European Commission
  9. Dialogue PlatformWhat Can Christians Learn from a Global Islamic Movement?
  10. European Jewish CongressEJC President Warns Europe as Holocaust Memory Fades
  11. European Free AlllianceNo Justice From the Spanish Supreme Court Ruling
  12. Nordic Council of MinistersNordic Solutions for Sustainable Cities: New Grants Awarded for Branding Projects