Shadow European Council – Conclusions || Spinelli Group

Shadow European Council – Conclusions

Posted by admin in Spinelli positions | Steering group

Conclusions du Groupe Spinelli [pdf FR]
Spinelli Group Conclusions [pdf EN]

Only a European federal union can solve the crisis – Federal Union or disintegration

The situation is critical. We can no longer wait. Since European leaders keep carefully avoiding the real decision, the European Commission has to take her full responsibility. It is the sole institution that can put forward draft legislation. The Commission must produce a clear legislative pack and timetable for and beyond the European Council of 28/29 June which must be endorsed with cast-iron commitments by the Heads of State and Government.

The leaders of the EU have it all wrong; it’s not about transferring sovereignty but recovering sovereignty – in the face of challenges and threats that are of global essence, no European country can claim to be sovereign.

Thirty years after the “Single Act”, we now urgently need a “Federal Act” to deliver a banking Union, an economic and fiscal Union and a political Union. The ‘Federal Act’ must contain 12 elements following the outline of the 4 blocks identified by the “Towards a genuine economic and monetary union” produced by the 4 Presidents.

Banking Union:

Set up of an EU wide deposit guarantee scheme and resolution fund and provide for the direct recapitalisation of the European banks through the establishment of a European fund which could be in the meantime provided by the EFSF and/or ESM.

Stabilize and clean up the whole banking sector, through establishing an adequate single supervisor in the Eurozone for banks carrying a systemic risk – including medium and large cross-border institutions – and achieve the internal market in the banking sector. Specific measures include:

- imposing stronger conditionalities to the institutions that benefited from crisis-related State aid and the support of ECB liquidity lines;

- stimulate loans to SMEs by making prudential and capital requirements more favourable (notably through ring-fencing mechanism and adequate risk weighting);

- ensuring bank balance sheets are down-sized by divesting the most risky activities first, thus ensuring that lending to the real economy is not negatively impacted;

- ending the executives’ self-serving behaviour as regards pensions, bonuses and salaries; preventing any breach of law by rescued banks, for example tax evasion.

Economic and fiscal Union:

Beyond the implementation of the Six Pack, therapid finalisation of the ‘Two Pack’, the entry into force of the Fiscal Compact, the ratification of the ESM Treaty and the modification of Article 136, the following reforms are necessary. These reforms have to go in parallel with further structural reforms in order to improve competitiveness.

Set-up a “new strategy for economic and social convergence and sustainable growth” with binding targets and sanctions for the Member States of the eurozone;

Increase as key element of this “Growth compact” the EIB capital as well as increase the funding of its loan portfolio through bond issuance open to retail investors and launch on a large scale of “project bonds” to support large-scale investment in sectors such as energy, transport and telecommunications of at least 1% of GDP over ten years;

Decide on a roadmap to a Eurobond market to enable the mutualisation of debt for the Eurozone Member States;

Launch a European collective redemption fund for debt over the 60% of GDP mark for a period of 20-25 years together with eurobills and the coordination of remaining debt issuance or similar proposals.

Make the multiannual financial framework (MFF) a real tool to assist paralysed member states to break out of the crisis. Fiscal Union also means a fiscally independent Union: the EU budget must be financed by own resources without increasing the existing tax burden on citizens and leading to a reduction in contributions from national treasuries. There is no recovery without sustainable resources; there are no sustainable resources without own resources.

Close loopholes in national tax systems, introduce a mandatory common consolidated corporate tax base (CCCTB), coupled with minimum range of corporate tax rates, to increase the effective real of taxations in the members states and to seriously tackle Value Added Tax (VAT) fraud and other forms of tax evasion.

Political Union:

A quantum leap towards a truly European democracy is indispensible. At the heart of the financial and sovereign debt crisis lies the absence of European government and the question of democracy. Ever closer intergovernmental coordination fails to deal with the crisis and lacks any form of democratic accountability. Extending the powers of the Commission on national budgets and economic policies cannot happen without corresponding reinforced democratic control both by the European Parliament and national/regional parliaments at their respective levels and a radical application of the community method.

The overly technocratic processes that too often characterise the decision-making, such as in the case of Greece, are no longer appropriate and need to be made more political in order to reflect the increase level of scrutiny that is now being placed over them.

In the mid-term a Convention should be organised to attend the democratic shortcoming of the current institutions.

A Eurozone government must develop, lead and supervise the economic and fiscal policy. It must be fully democratically accountable. In effect it can only be organized within the European Commission. The Commission represents the euro area in the International Financial Institutions and chair the Eurogroup and the Ecofin Council.

10.

Introduce pan-European lists to elect a portion of the MEPs on this basis in order to further develop the legitimacy of the European Parliament and of the European democratic process. A European public space should be further develop through the trans-nationalization of the media space, training and exchanges between citizens, stakeholders and groups of citizens on a large scale (as with Erasmus), the European Citizens’ Initiative and all forms of transnational citizen participation including through new social media.

11.

Strengthen the democratic legitimacy of the Commission President, with an agreement, prior to the 2014 campaign, between all major EU political families to declare that their candidates to the Presidency of the Commission will only be accepted by the new Parliament if they have preferably been elected to the European Parliament and above all have campaigned throughout all 27 Member States. Furthermore, at least half the College of Commissioners must be drawn from people elected to the European Parliament in the 2014 elections.

Last but not least: Help Greece save itself

12.

Help Greece by reviewing the terms of the Memorandum to:

- extend the deadline for Greece to achieve the fiscal targets

- redefine better targets, with more in depth and structural reforms instead of the moderation of minimum wages in the private sector and the raise of the tax burden on small and medium companies;

- shift financial resources to the Greek real economy by diversifying for a certain period the exclusive conditions for debt repayment, so that the needs for an efficient public administration and decent welfare state gain at least an equal priority;

- get detailed data from the Swiss and other banks for Greek deposits, in order to control gray properties and illegal deposits;

- establish an independent European Audit Commission to provide detailed information on how public debt was accumulated over time and to determine the amount of any “odious debt”.

The crisis has clearly demonstrated that a shared European project cannot exist unless national debates are Europeanized. The construction of a European political union represents an unprecedented historical opportunity to bring democracy out of its national historical context and become a true transnational democracy of a federal type.

Allemagne, Andrew Duff, Daniel Cohn-Bendit, Democracy, economic governance, Euro, Eurobonds, Europe, European Council, European elections, European Parliament, Eurozone, Federalisme, France, Germany, Grèce, Greece, Guy Verhofstadt, Isabelle Durant, Italy, Parlement européen, Romano Prodi, Sylvie Goulard, Union Européenne

You can follow any responses to this entry through the RSS 2.0 You can leave a response, or trackback.

Jean Nemart

Does the alleged Spinelli group speak something else than globish ?
Giraud jean guy

UEF FRANCE welcomes point 9 to 11 of these conclusions . However, we believe that :

1. the present Parliament should prepare a preliminary draft for the Convention (see article 48§2 TUE)

2. the Convention should convene not in “the medium term” but as soon as 2014 with the new Commission and new EP

3. the revision should not limit itself to EMU articles but should close existing gaps in the institutional framework as amended by the LT

Jean-Guy GIRAUD / President /UEF FRANCE
Lamberto Zanetti

Una Convenzione/Assemblea Costituente che rediga ” La Costituzione degli Stati Uniti d’Europa” va convocata subito ” Qui ed Ora” e non può essere rinviata in un indefinito “ medio termine ” dato che di tempo a disposizione purtroppo ne è rimasto pochissimo. Lamberto Zanetti – Segretario Regionale del Movimento Federalista Europeo dell’Emilia-Romagna.
Lamberto Zanetti

Trascrivo di nuovo il testo che ho in viato precedentemente e che probabilmente ha subito qualche interferenza nell’invio.
Una Convenzione/Assemblea Costituente che rediga ” La Costituzione degli Stati Uniti d’Europa” va convocta subito ” Qui ed Ora ” e non può essere rinviata ad un indefinito “medio termine ” , perchè di tempo a disposizione ne è rimasto purtroppo pochissimo. Lamberto Zanetti – Segretario Regionale del Movimento Federalista Europeo dell’Emilia- Romagna.
http://twitter.com/EU_Dictatorship Sue

What a bunch of Communists you are. The time is coming when Britons will force their government to hold a referendum. You’ll lose one of your best cash-cows then!
www.europelibre.typepad.com

Thank you very much for this initiative since indeed we need a true debate on Europe, thank you for contributing to it. However I have to say that I am quiet disappointed by your paper, which I find not very realistic and therefore not so much useful… I was expecting much more from your excellent initiative to hold a Shadow European Council. Let’s be clear, I am a true federalist, and even a pan European one. This is the goal at a very long term, but the best way to reach it is to very pragmatically build the European House, stone after stone, and not to give the impression that we can have the roof before having the walls. You mix your personal federal views for the entire European Union with the current necessity to have a federal management of the Eurozone. This might be very counterproductive and can let us waste a lot of time, energy and lose a lot of support. Do not give the impression that federalism is an ideological dream, federalism should comes from the necessity, as the true solution provider where it is needed and when it is needed. This is also very much the core of the very important principle of subsidiarity. In my view this would be a big mistake to give to the Commission the responsibility of managing the Eurozone. This is not its sphere of competence and responsibility. The realities at stake are way too strategic to let them in the hands of people whose duty is to find compromise with countries not involved in the Euro venture. Europe needs clarity and simplification. This is the prerequisite for efficiency, democratic control and at the end legitimacy. Then let us urgently build the institutions that the Eurozone needs and desserves. We need an executive body for the Eurozone as rightly (but a bit shortly) suggested by Valery Giscard d’Estaing on June 23 in Le Monde. We need also a legislative body, and here it is easier, we can just use the European Parliament and European Council reduced to the representatives of the members of the Eurozone. The President of the Eurozone Executive body has to be designated by the European Parliament of the Eurozone; he shall alone designate his/her team which will be fully responsible toward the European Parliament of the Eurozone. The European Court of Justice should get the capacity to judge any institutional or constitutional case in relation to the Eurozone. Let’s concentrate on this federal Eurozone before dreaming about wider and even more challenging horizons. This is for your chapter on the Political Union and if I start with it because it is the most important one since the crisis completely lies in a pure governance issue. Now let’s quickly review the rest, Banking Union:- Here again it is absolutely counterproductive to speak about a EU deposit guarantee scheme, this is pure dream and even a non-necessary one. I even do not support this idea on the Eurozone perimeter. Such a guarantee should come if and when appropriate from the ECB in favour of very specific banks of the Eurozone under very specific circumstances. Today this is not yet necessary. Yes this is time to start to think about it for some Greek banks, but there is absolutely no ground for having here a global and permanent rule. - the true sense of having a Banking Union is to finally turn the page of this awfully fragmented European banking market, a very costly and damaging fragmentation when states are not anymore able to address alone their own banking crisis. 13 years after the introduction of the Euro it is way time to finally recognise that the money and banking credits are the most fungible assets and therefore to finally treat them accordingly, with a strong and, unique European banking regulator. Covering all and any bank in the Eurozone. Only the ECB can take this responsibility. The sooner the better. On the Economic and fiscal Union no major points, except that I would have put the Redemption Fund as the very first priority in order to very quickly put an end to a crisis which we could have been avoided from the very beginning. Help Greece save itself ? Naturally, this is only common sensé. Last comment, please do not avoid the post-mortem of this crisis. Lehman is not the only guilty one around, the European institutions clearly failed and this is extremely important to recognise it if we want to improve. The Maastricht Treaty was never implemented, and nobody cared about it, the same for the Stability Pact. The Lisbon Strategy and the Agenda 2020 were and are very unfortunately just very bad jokes and nobody complained or complain. Naturally we need more Europe and more federalism, but we need first of all a much more consequent Europe. Stop doing as if. Launching bright ideas and fantastic commitments and never never delivering. If we treat the reforms to come as we treated the fantastic and clever reforms that were launched in the 90s, this will be just preparing a new disaster. And our continent cannot afford a new fake Europe. Then please do not only sell sweet dreams and sweet melodies. Don’t call for federalism just because you like it, you would be then counterproductive and even frighten the voters, reduce our chances. But please call for more responsibility, be consequent, even dare to take part of the responsibility which was your and still is. This would be the most solid ground for building a very true and necessary federalism. I invite you to read on this subject Mon discours de Bruxelles and my mini essay Crise européenne, analyse d’un Indigné Européen on my blog. Federalism yes, but please make it real, no room and no time anymore for nice dreams.I wish you all the best.
Janiaud Paul

L’ensemble des propositions n’est pas utopique;il faut trouver une méthode pour que les peuples européens s’en emparent , et qu’ils pourront peser .La nécessité d’élire une partie des MEP sur des listes paneuropéennes est un pas essentiel.Il faut aussi que les MEP rendent compte des débats, des avancées, des difficultés .Je ne suis pas compétent sur les questions financières et beugetaires, mais l’UE n’a pas un budget à hauteur des besoins, et ce budget n’augmentera que lorsque les citoyens europées en comprendront l’importance et la nécessité .Le débat sur l’abandon de souveraineté n’est pas correct , qu’est ce que la souveraineté d’un grouvernement alors que les BRICS PRENNENT UNE PART CROISSANTE DELA PRODUCTION, et qu’en même temps un milliard et demi de personnes soufrent de la faim.Il faut donc developper les moyens pédagogiques , notamment faire comprendre mieux le role des instances européennes, et des enjeux mondiaux
Evidemment personnellement et par profession et trole passé , je souhaite que le nouvel équilibre financier permete d’accroitre fortement le budget du FO8 Horizon 2020 , sinon la base de créations de richesses restera trop faible . Il est d’azilleurs à noter que FP7 a déja largement réduit les moyens de la recherche sur la multiculturalité, la compréhension des comportements . Pour que ce magnifique plan proposé puisse se mettre en oeuvre, il faut donc arracher la mise en oeuvre de leviers réels .
Paul JANIAUD
directeur de recherche INSERM en retraite, ancien représentant des organismes de recherche français auprès de la DG RECHERCHE
Amato Roketo

On parle de démocratisation transnationale, de systèmes de type Erasmus, etc. Mais c’est le grand silence en ce qui concerne l’adoption d’une langue passerelle commune. Le globish est une catastrophe qui coûte très cher aux Nations autres que le Royaume Uni.
Adopter l’Espéranto qui s’écrit comme il se prononce et réciproquement, et qui a acquis ses lettres de noblesse depuis plus d’un siècle d’existence, cela semble être hors de portée des têtes d’oeufs qui nous gouvernent.
Jusqu’à quand ?
Xmatheu

Finally a sound opinion- Thanks for the statements. By the way, why not a direct election of the EU President by the citizens?
Carlo Waldman

I fully agree to your statement. Esperanto is the only fair – and practical – solution to the inter-linguistic communication issue.
Je partage votre opinion. L’Espéranto est la seule solution équitable et éprouvée pour répondre au problème de la communication inter-linguistique.
Ich teile Ihre Meinung. Esperanto ist die einzige gerechte und praktische Lösung zum Problem der Kommunikation zwischen den Sprachen.