PRESIDENT OF the European Council Herman Van Rompuy has said the financial crisis obliges EU leaders to takes steps down the road to “economic governance” in the union, arguing that they were in fact already moving in that direction.
Against the backdrop of acute concern about the Greek financial crisis and renewed efforts to intensify economic co-ordination in the wider union, Mr Van Rompuy said the union’s economic policy had to be strong to confront the challenges it faces.
He was speaking last night at the European College in Bruges, scene in 1988 of Margaret Thatcher’s landmark denunciation of the idea of a “European super-state”.
Mr Van Rompuy said he had put economic growth at the top of his agenda when he took office last month at the helm of the European Council, the assembly of EU heads of state and government.
He said all EU leaders agreed at a special summit two weeks ago that better co-ordination in structural reform was required to foster growth, jobs and competitiveness.
More than ever, he added, the current situation called for short-term policies and internal economic imbalances to be kept under control.
“It is my fervent intention to work in partnership and to mobilise all the energies and competencies in the union,” he said.
“All the members of the European Council were willing to take more responsibility for these economic issues. Such personal involvement is indispensable.”
Mr Van Rompuy said he was glad to find a high level of ambition on these matters at the European Council.
“The first result is that the European Council becomes something like the gouvernement économique of the union, as some would call it. Or the place for economic governance, as others prefer. The financial and economic crisis obliges us to take steps on this road.”
His remark comes amid a vigorous political debate about a possible fiscal bailout for Greece and threatened moves to impose new austerity measures on Athens from Brussels if its budget plan misfires.
Mr Van Rompuy also said the US remains the EU’s most appropriate partner in many fields but said the Union must assert itself politically to avoid a repeat of its exclusion from the Copenhagen climate deal.
He acknowledged disappointment that US President Barack Obama declined to participate in a planned EU-US summit, but he said the decision was not rooted in a perception that the Lisbon Treaty structures were not working.
“The reason of the summit postponement was elsewhere,” he said, without specifying the reasons. “The Americans know very well that institution-building takes time.”
Separately, European Parliament president Jerzy Buzek has initiated moves to discipline British Eurosceptic MEP Nigel Farage over offensive remarks he made to Mr Van Rompuy’s face on the floor of the parliament on Wednesday.
Mr Farage claimed Mr Van Rompuiy had the “charisma of a wet rag” and the appearance of a “low-grade bank clerk”.
Clearly annoyed, Mr Van Rompuy said he regarded such remarks with contempt.
Mr Buzek’s spokesman said he has called Mr Farage to a meeting next Tuesday and may impose a fine on him for the language he used.