Euro Crisis Masking Economic Problems
Brussels -- Tuesday 28 June, 2011
I used the Extraordinary Conference of Presidents today to call on leaders to ensure that only Eurozone members pay for the mistakes made with the currency and warn colleagues that the monetary crisis should not deflect attention away from the deep economic problems facing Europe.
Please read my speech in full:
Presidents,
Before addressing the question of the crisis in the Eurozone, let me first touch on some other issues raised at the summit:
Firstly, it is morally right and politically imperative that we offer support to all those across North Africa and in the Middle East who want to establish individual freedom and democratic institutions based on the rule of law.
It is an historic opportunity to strike a significant blow against extremists both here and abroad who often claim that we are living through a 'clash of civilisations'. There is a clash: but it is between the civilised - reflected in all religions and races - and the barbaric, exemplified by terrorists who seek to impose their views through fear and force.
To win this clash we must patiently and determinedly pursue this three-pronged approach:
- democratic reform to establish effective representative government;
- economic growth to increase employment and opportunity, and to relieve poverty;
- and a commitment to the security measures necessary to defend ourselves against those who seek to destroy us.
Regarding migration - this is actually a case where what is required is not 'more Europe' but a 'better Europe'.
We need existing legislation to be applied more effectively, and existing agencies to be more efficient.
The challenges we face in the present movement of poeple are real and serious and cannot simply be wished away with platitudes or clichés.
- Cross-border crime is a major problem;
- terrorism is a real threat;
- and large-scale migration is a serious economic and social challenge.
Our response must be both realistic and decisive - fair but firm. Border controls must be maintained where necessary - notably for my own country - and, where they no longer exist, replaced by measures which can inspire confidence and trust for the long term.
Concerning the Roma people, we believe it was important for the question to be raised. The integration of the Roma people and respect of their fundamental rights is a matter of concern to us all. The emphasis must now be on action - but action primarily within our member states: this is an area where a localised approach is much to be preferred to heavy-handed intervention from the top.
And now Croatia - We welcome the fact that negotiations are advancing well and the day when Croatia might join us is fast approaching.
Finally let me turn to the European economic crisis.
It is vital for us that the crisis with the Euro be overcome and all of our member states play their part through the IMF if necessary.
But the European Union is not just the Eurozone and those with the responsibility for the rules of the eurozone must equally be responsible for its problems. Those who decided on the eurozone's membership in the first place and those who decided how to enforce - or not - the growth and stability pact, must now deal with the consequences of their decisions. Mr Verhofstadt, it's not true to say no countries punish themsleves - remember Germany from the Erhard owards and their fiscal discipline.
This is why we welcome these conclusions from the European Council which make it clear that those outside the eurozone, who of course were excluded from its decision-making processes, must also be excluded from paying for the consequences.
But there is another terrible danger: that we will get through the eurozone crisis only to realise too late that we have failed to respond effectively to the underlying economic crisis: especially our increasingly poor performance in terms of investment, innovation, competitiveness, and productivity.
We need action and reform so that we can build more of our own world-class businesses, delivering first class goods and services, which will alone deliver the long term wealth on which our way of life depends.
Today, Greece may be the important story. But when the history of the twenty-first century comes to be written, the theme might be how we survived the monetary earthquake simply to succumb to the economic tsunami.
Timothy also wrote an Op Ed for the Yorkshire Post based on his speech which you can read here on this website.
