Britannia Radio

This is dangerous talk and it's coming not just from Sarkozy but  
from Gordon Brown too.  The Europolicos are justifiably scared and 
they can think of little but to huddle closer together for comfort 
and to ensure that they can share the blame, while using the crisis 
to cover up the move towards an ever more centralised EU .

It's creepy!

xxxxxxxxxxxxx cs
=======================
EU OBSERVER   16.10.08
Sarkozy urges closer co-ordination of EU economic policies
ELITSA VUCHEVA

  BRUSSELS - EU states should work on closer co-ordination of their 
economic policies in the face of the looming economic crisis, French 
leader and EU president-in-office Nicolas Sarkozy said on Thursday 
(16 October), adding that industry is a one sector that should 
receive particular attention.

"The economic crisis is here and the question [I have asked] is: If 
we managed to bring a co-ordinated response to the financial crisis 
in Europe, should we not bring a coordinated response to the economic 
crisis in Europe [as well]?" Mr Sarkozy told journalists at the end 
of an EU leaders meeting in Brussels.
"There was a vicious circle, we have started a virtuous circle, well, 
let's continue it. Before 1 January 2009 [the end of the French EU 
presidency] France will take initiatives in that respect," he added.
"The emergence of this economic governance of Europe, which we had 
been waiting for for such a long time and which started last Sunday 
in Paris, should not be stopped."

The French president's comments came as reports roll in that Europe's 
economies may be moving towards recession.

Mr Sarkozy also called on eurozone countries in particular to 
strengthen the co-ordination of their economic policies.
"The countries that have got the same central bank, the same 
currency, must try to co-ordinate their economic policies," he said.
"I have several ideas in that respect, but it is not the time, it is 
not the place to present them," he added.

Before EU leaders meet again in December, the French EU presidency 
has asked the European Commission to reflect on how to support growth 
and employment, "with a particular reference to industry."

Mr Sarkozy said European car makers in particular might need a 
"helping hand," echoing statements he had made last week that he 
would propose a revision of EU state aid rules to encourage car 
makers to produce greener cars.

Mixed response
The French president's remarks received mixed reactions, however, 
with UK Prime Minister Gordon Brown saying it was "important to look 
at all aspects in the real economy to see what we can do."

Nonetheless, he and his foreign minister, David Miliband, emphasised 
the importance of adhering to the existing free-market orientation of 
EU policies. Mr Miliband underscored to reporters that EU leaders had 
agreed to language in their final statement at the end of the summit 
wherein: "The European Council supports the commission's 
implementation .. of the rules on competition policy, particularly 
state aid."

For his part, German Foreign Minister Frank-Walter Steinmeier 
stressed that any plan for a co-ordinated response to the economic 
crisis "was not yet ripe for discussion," according to the Associated 
Press.

Mr Sarkozy himself admitted he did not expect an unanimous and 
immediate backing of his idea.
"Do we need the same co-ordination for the economic policy as for the 
financial policy? From the French EU presidency's point of view the 
answer is: 'Yes, yes, yes, yes,'" he said.
"Do we have unanimity at this stage? No, no, no," he added, while 
stressing he remained optimistic nevertheless.

A Bretton Woods II summit
Meanwhile, Mr Sarkozy reiterated calls for an international summit on 
a global financial overhaul to be held before the end of this year, 
preferably in November.

The so-called "Bretton Woods II" summit - in reference to the Bretton 
Woods accords which in 1944 constructed the postwar financial order - 
would gather EU countries, the US and emerging economies such as 
China and India.

Among the topics he would like to see discussed at such a summit, Mr 
Sarkozy cited tax havens, financial supervision, hedge funds, and how 
to deal with credit rating agencies in the future.
Additionally, the French president said he would raise the topic of 
the role of international financial institutions, notably that of the 
International Monetary Fund (IMF).
"Clearly I would like to ask the question of the IMF, of its future 
and its role," he said, adding he would like the institution to have 
expanded responsibilities.

"All these topics must be on the table. We must prepare an ambitious 
agenda . We do not have the right to miss this opportunity [NOTE THAT 
WORD 'opportunity".  This proves that the first thought of a 
europ;olitico is how to use events to further the EU's ambitions -
cs]  for reconstructing our system of finance in the 21st century," 
Mr Sarkozy added.

He, together with EU commission President Jose Manuel Barroso, will 
on Saturday (18 October) hold talks with US president George W. Bush 
on these topics in preparation for the summit that should pave the 
way to what Mr Sarkozy calls the "re-foundation of capitalism."