Perilous Times and The Revived Roman Empire
EU draws up plans for single 'economic government' to prevent crisis
Germany and France have tabled controversial plans to create an
"economic government of the European Union" to police financial policy
across the continent.
By Bruno Waterfield in Brussels
Published: 8:21PM GMT 25 Mar 2010
German Chancellor Angela Merkel with French President Nicolas Sarkozy
at the summit of European Union leaders in Brussels
They have put Herman Van Rompuy, the EU President, in charge of a
special task force to examine "all options possible" to prevent another
crisis like the one caused by the Greek meltdown.
His mission will be to draw up a master-plan for the best way to
oversee and enforce economic targets set in Brussels as a key part of a
bail-out package for Greece.
The options he will consider include the creation of an "economic
government" by the by the end of the year.
"We commit to promote a strong co-ordination of economic policies in
Europe," said a draft text expected to be agreed by EU leaders last
night.
"We consider that the European Council should become the economic
government of the EU and we propose to increase its role in economic
surveillance and the definition of the EU's growth strategy."
Gordon Brown was last night examining the wording of the statement to
see whether it was restricted to eurozone members or has possible
implications for British economic sovereignty.
Officials are concerned that the language calling for an "economic
government" could be another attempt at a power-grab in the wake of the
Lisbon Treaty.
It comes at a time when a Conservative government has promised Britons
a vote on any new EU treaty if it wins the general election.
The contentious language was contained in a Franco-German document
prepared for an emergency meeting of the 16 "eurozone" countries, in
the wings of a summit in Brussels.
The talks, over a pre-dinner aperitif, decided on an EU-led "mechanism"
for bailing out the crisis-hit Greek economy with the help of the IMF
if necessary.
Combined with the aid is a German plan for tougher sanctions for
countries, such as Greece, that run up massive public debts while
failing to reform uncompetitive economies.
Mr Van Rompuy, the former Prime Minister of Belgium, is an enthusiastic
supporter of "la gouvernement économique" and last month upset many
national capitals by trying impose "top down" economic targets.
Angela Merkel, the German Chancellor, has called for the Lisbon Treaty
to be amended in order to prevent any repetition of the current Greek
crisis, which has threatened to tear apart the euro.
"I will push for necessary treaty changes so that we can act sooner and
more effectively when things go wrong, including with targeted
sanctions," she said.
If Chancellor Merkel's idea gains momentum, Croatia's likely EU
membership next year would need an "amending Treaty" providing an easy
opportunity to lever in proposals for economic government.
When the Lisbon Treaty was agreed, European leaders, including Mr
Brown, said that it would be the last attempt to change the EU's basic
rules until least 2020.
Britain is not a euro member, but it is a signatory to the Maastricht
and Lisbon treaties that already require London to submit budgetary
reports. Britain ia also required, under recent proposals from Mr Van
Rompuy, to observe EU targets on employment, research spending, green
technology, education and poverty reduction.