I HARDLY exaggerate in saying that, more than ever, co-operation in Europe has been put to the test in recent years. This testing will continue for the foreseeable future as the debt crisis continues to worry financial markets about the long-term sustainability of European economies.
With low levels of growth and high levels of unemployment the unrest in Europe is understandable. But important decisions have been made to confront and contain the crisis. In 2010 the EFSF (European Financial Stability Facility) was created to provide financial support to euro area countries in serious financial difficulties. Significant additional steps were taken towards strengthening the EFSF and ensuring the soundness of the European banking sector in 2011.
Lastly, in December 2011 the European Council decided to strengthen economic robustness in Europe by pushing forward a new intergovernmental treaty – the fiscal compact – which is now expected to be signed next month.
The fiscal compact will strengthen stability, co-ordination and governance in Europe, and being a small open economy highly dependent upon the stability in the euro zone area, Denmark supports this initiative. In other words we are well under way in consolidating European economic governance.
The primary task for the current Danish presidency of the Council of the European Union is to unite Europe and build bridges between the member states in the euro and the member states outside the euro. This task has become even more important in light of the fiscal compact, where not all member states chose to participate in the agreement.
During the Danish presidency new and stricter budget rules will be enforced, entailing better supervision of EU economies ensuring that all member states implement the promised reforms. It is important to ensure that states continue their efforts at implementing necessary reforms and exercising budget discipline.
We acknowledge the important and difficult steps taken by the Irish Government to restore Ireland’s economy. The cuts in public expenditures and the measures being taken will contribute to a faster and more solid recovery of the Irish economy.
To restore momentum for economic growth in Europe, the presidency will push forward the difficult negotiations of the next seven-year budget for the EU’s multiannual financial framework for 2014-2020. It is crucial that a new framework channels more funds to growth-enhancing areas such as research, education and green technologies. Economic moderation in Europe must be accompanied by growth-promoting initiatives. Budget cuts cannot stand alone.
This has been a central message from the Danish presidency from day one and I was therefore pleased to note, that this was also the message from the European Council on January 30th.
Further to this the single market needs to be expanded and digitised fully to take advantage of new opportunities from technological developments. We will work for concrete results on some of the European Commission’s 12 specific initiatives aimed at stimulating new growth. For example, by reducing the bureaucratic burdens for small and medium-sized enterprises, increasing consumer protection when shopping online and making it cheaper using mobile phones when abroad.
Economies in Europe must also be sustainable in the long run. We will therefore set a proactive green-growth agenda at the European level. It is essential that we continue Europe’s transition to a greener and more sustainable economy if we are to maintain our comparative advantage to other regions of the world. Otherwise, knowledge-intensive jobs and high-tech research capabilities may move out of Europe.
The EU presidency is a major task. However, with a pragmatic and results-oriented approach, we want to contribute to moving Europe forward.
Today I visit Dublin first of all to meet my colleague, Minister of State for European Affairs Lucinda Creighton, to discuss possible solutions to some of the challenges in the EU. When Ireland takes over the EU presidency at the start of next year we will do our utmost to be a good, frank and helpful partner to Ireland. Together we can work our way out of the crisis.
Nicolai Wammen is Denmark’s minister for European affairs. Denmark currently holds the rotating EU presidency.