Friday

26th May 2017

Opinion

Ignoring our problems leads only to crisis

The Commission’s decision to turn a blind eye to the deficits of Spain and Portugal does not bode well for the future. It may yet lead to another crisis and undermine our rules-based Union.

The European Commission still has another chance to decide. Are Spain and Portugal off the hook for their fiscal imbalances? This follows a move, earlier this year, to make similar exceptions for France.

Dear EUobserver reader

Subscribe now for unrestricted access to EUobserver.

Sign up for 30 days' free trial, no obligation. Full subscription only 15 € / month or 150 € / year.

  1. Unlimited access on desktop and mobile
  2. All premium articles, analysis, commentary and investigations
  3. EUobserver archives

EUobserver is the only independent news media covering EU affairs in Brussels and all 28 member states.

♡ We value your support.

If you already have an account click here to login.

It was the decision to not apply these rules from the beginning that sowed the seeds for the sovereign debt crisis.

In 2003, Germany and France agreed that the two countries would not have to follow the rules of the Stability and Growth Pact (SGP) and decided that the sanctions mechanism should not be applied.

Other member states soon learned they didn’t have to follow the rules and five years later, when the American financial crisis hit Europe, member states were far more vulnerable than they should otherwise have been.

Do you hear the toll of bells of the past yet?

We must not risk making the same mistakes again for short-term political gain. Rules about fiscal discipline are there for a reason.

Our rules are for all of us

But my criticism is not only about economics, it’s also about politics and the fundamental workings of our Union.

When the president of the Commission Jean-Claude Juncker said France would not have to follow the rules because it was France, he undermined one of the most fundamental principles of the European Union.

The first sentence of Article two of the Treaty of the European Union says:

"The Union shall respect the equality of member states before the Treaties as well as their national identities, inherent in their fundamental structures, political and constitutional, inclusive of regional and local self-government."

True, countries’ voting rights are weighted according to population size, and so is their representation in the European Parliament. But representation is one thing, being obliged to follow rules and regulations are another.

In any civilised political system, based on the rule of law, all subjects to the law should be treated equally. This principle is one of the founding pillars of modern democracy and Western political culture. Otherwise we risk undermining the credibility of our rules, crucial for the credibility of the stability of the European economy as well as the Monetary Union.

Fiscal responsibility is one of the foundations of economic growth and hence of the well-being of European citizens. That rules are followed is one of the prerequisite of a successful society.

The European Commission is obliged to be the guardian of these rules. They are certainly not an expression of Brussels - bureaucracy nor aim for austerity. It’s the other way around, austerity came from the breach of the rules. They are instead the preconditions for a prosperous and strong Europe.

The practise of shirking the rules needs to end.

Gunnar Hoekmark is leader of the Swedish EPP delegation in the European Parliament and Member of the Committee on Economic Affairs.

EU gives France until 2017 to fix deficit

The European Commission on Wednesday gave France another two years to bring its budget within EU rules, saying that sanctions represent a "failure".

Development serving the purpose of migration control

While the EU is sacrificing development aid to serve short-term migration interests, it is important to realise that enhanced border controls will not solve the root causes of forced migration and displacement.

News in Brief

  1. Malloch will not be US ambassador to the EU
  2. 'Significant' drop in EU migration to UK
  3. Bomb injures former Greek PM
  4. British PM to speak out on US terrorism leaks
  5. Tusk calls for 'values, not just interests' after Trump meeting
  6. Pressure grows on climate impact of EU timber harvesting
  7. US goes after Fiat Chrysler over emissions cheat
  8. Munich police break up Europe-wide burglar clan

Stakeholders' Highlights

  1. UNICEFChild Alert on Myanmar: Fruits of Rapid Development yet to Reach Remote Regions
  2. Nordic Council of MinistersBecome an Explorer - 'Traces of Nordic' Seeking Storytellers Around the World
  3. Malta EU 2017Closer Cooperation and Reinforced Solidarity to Ensure Security of Gas Supply
  4. European Healthy Lifestyle AllianceHigh-Intensity Interval Training Is Therapeutic Option for Type 2 Diabetes
  5. Dialogue Platform"The West Must Help Turkey Return to a Democratic Path" a Call by Fethullah Gulen
  6. ILGA-EuropeRainbow Europe 2017 Is Live - Which Countries Are Leading on LGBTI Equality?
  7. Centre Maurits CoppietersWhen You Invest in a Refugee Woman You Help the Whole Community
  8. Eurogroup for AnimalsECJ Ruling: Member States Given No Say on Wildlife Protection In Trade
  9. European Heart NetworkCall for Urgent Adoption of EU-Wide Nutrient Profiles for Nutrition & Health Claims
  10. Counter BalanceInvestment Plan for Europe More Climate Friendly but European Parliament Shows Little Ambition
  11. Mission of China to the EUPresident Xi: China's Belt and Road Initiative Benefits People Around the World
  12. Malta EU 2017EU Strengthens Control of the Acquisition and Possession of Firearms