Van Rompuy: soberheid mag groei niet in de weg staan (en)

Austerity must not jeopardise growth, said Van Rompuy at EESC plenary

The key tasks in front of the crisis task force of the European Union are to simultaneously ensure economic recovery and growth, and to guarantee a strong economic governance, said President of the European Council Mr.  Herman Van Rompuy addressing the plenary session of the EESC for the first time during his tenure. EESC members urged concrete and rapid action and a real involvement of civil society.

In his introductory remarks, EESC President Mr. Mario Sepi said that the social aspects that social effects of any recovery package must not be neglected while re-launching Europe's economy.

"We wanted socially sensitive issues such as poverty, immigration and education to be considered as part of any recovery project," he said.

"You bring to the Union a capacity to synthesise diverging interests and the wide range of perspectives of those actively involved in society through organised groups," said Mr. Van Rompuy, who went on to talk about the current economic woes of the Member States.

He stressed the importance of not only tackling public deficits, which even Euro-zone countries were stretching far beyond the Maastricht criterion of 3 percent, but also of dealing with the rapidly accumulating sovereign debts.

"We tend to look through the keyhole of public deficit, forgetting the bay window of public debt," he said. But while curbing the budget shortfall and decreasing sovereign debt entails austerity measures already taken in several Member States, countries must not jeopardize their future growth on the altar of fiscal order.

"The EU must start growing economically, which is the only way to recover from the debt problem. We cannot solve the budgetary issues without tackling growth therefore austerity must not have detrimental effects on nascent recovery" he said, adding that research and development as well as innovation must be key areas of investment.

Reflecting on how Greek sovereign debt triggered a loss of confidence in the stability of other Euro-zone countries, Mr. Van Rompuy stressed the mutual responsibilities among EU countries.

"If there is a doubt in the state bonds of one country, it has a ripple effect on all the EU because the banking systems are interlinked. Therefore the sovereign debt of one country is the problem of all countries," he said, adding that delayed EU action in the wake of the Greek crisis multiplied the bill for treatment.

In response to Mr. Van Rompuy, Mr. Georgios Dassis (president of Employees' Group, Greece) criticized slow EU reaction to the Greek crisis and urged further steps to follow the massive financial package agreed by EU leaders to guarantee ailing EU economies.

"The 750-billion-euro package is but one step in the right direction. But when will we see an institution called the European Monetary Fund, lending to governments at normal interest rates instead of the usurp rates? How much poverty do we need to bring about a decision establishing a financial transaction tax?" said Mr. Dassis in a speech followed by a loud applause from the plenary.

Mr. Staffan Nilsson (president of Various Interests Group, Sweden) on his part, called Mr. Van Rompuy's attention to the task of involving societies in the necessary economic measures. He urged the Council President to push for a clear mandate for the EESC in the June European Council.

"It is up to the Member States to carry out the austerity measures, but the understanding of their citizens is essential. This is key to emerging from the crisis," he stressed.

"Instead of always focusing on austerity, let's focus more on the resilience of the European economy. And rather than being defensive, let's go on the offensive," said Mr. Joost van Iersel (Employers' Group, The Netherlands), also highlighting the necessity for strong economic governance.

Thanking for the interventions he considered "frank and open", Mr. Van Rompuy reiterated his intention to return to the EESC later in the year.

For more information, please contact:

Barbara GESSLER, EESC Press Unit,

Tel.:+32 2 546 8066;

barbara.gessler@eesc.europa.eu

Rue Belliard/Belliardstraat 99 - 1040 Bruxelles/Brussel - BELGIQUE/BELGIË

Tel. +32 25469396 - Fax +32 25469764

E-mail: press@eesc.europa.eu - Internet: www.eesc.europa.eu

EN