This represents a step back from total integration of the Eurozone
but more importantly perhaps is the rejection of Sarkozy’s plans to
take more control of the EU in generalk into French hands.
Sarkozy has already rubbed up the wrong way a number of EU leaders
especially those in Sweden, and Poland as well as Chancellor Merkel
in Germany . He is giving a great example of ‘How to lose friends
and antagonise people’.
It was in January of this year that the FT reported - - -“Angela
Merkel, the German chancellor, rejected France’s proposal for a
“summit” of the eurozone’s heads of states and governments on
Tuesday, saying it was “unnecessary” and potentially “divisive.”
This will spill over into other fields as well as economics - defence
for a start - and will leave France under Sarkozy with one close
friend - Gordon Brown .
xxxxxxxxxxx cs
=======================
EU OBSERVER 4.11.08
Juncker rejects Sarkozy's 'economic government' for eurozone
LUCIA KUBOSOVA
BRUSSELS - Finance ministers from the 15-strong euro area have
agreed to drop the goal of balancing the budgetary deficits by 2010,
while concluding that the bloc does not need an extra package similar
to the bank rescue plan but aimed instead at kick-starting the
faltering economy.
Meeting in Brussels on Monday (3 November) on the eve of a full EU
ministerial session on finance, the ministers decided that their
previous medium-term objective of zero deficits by the end of this
decade - agreed in April 2007 - "should be revised".
Instead, the goal will be replaced by individual plans for member
states "on a case-by-case basis at dates that will pushed back,"
Eurozone chair, Luxembourg's premier and finance minister, Jean-
Claude Juncker, told journalists.
The debate took place just after the European Commission presented a
grim economic forecast for 2008 and next two years, warning that in
2009, the EU's economy will reach a "stand still."
EU economy commissioner Joaquin Almunia pressed governments to
approach the problem, which threatens to severely affect jobs across
the continent, in a similar, co-ordinated way as they did when they
moved to save the bloc's banking sector.
"Looking at the need to accelerate as much as possible the decisions
that can promote a recovery based on a sound basis, this co-
ordination, this European action, and in particular this euro area
action is essential and I am very happy to see the positive reaction
of the members of the Eurogroup to these ideas," he said after the
meeting.
However, Mr Juncker pointed out that this co-ordination should not
come in form of a new package of measures similar to the bank rescue
plans that involved emergency steps such as boosting deposit
guarantees or pumping state capital into weakened financial
institutions.
"We do not believe that in the euro area we need a general revival
package, a sort of classical or traditional programme to stimulate
the short-term economy," he said, adding that the existing rules are
sufficient.
"It is simply a question of adopting targeted temporary and
consistent measures designed to help us in the short-term," noted
Luxembourg's leader.
Economic government
On Monday, eurozone chiefs of finance gathered for the first time
after several remarks by the French President Nicolas Sarkozy - whose
country currently holds the six-month rotating presidency of the 27-
strong club - about the future governance of the monetary union.
The French leader had suggested that there should be regular meetings
of heads of state and government of members of the eurozone - similar
to those that had been hosted by him under the extraordinary
circumstances of the financial crisis that had pushed Europe's
banking sector on the verge of total collapse.
This new forum could serve as a form of eurozone "economic
government," Mr Sarkozy had said in his speech to the European
Parliament last month.
But his Luxembourg counterpart, Mr Juncker, told journalists on
Monday that while the idea is not new and the French president had
argued in favour of it "on a number of occasions" before, "most
member states did not agree with that idea."
"In my view, I do not think it is a good idea to institutionalise a
meeting at such a high level, but it seems to me that whenever it is
necessary, it is not a bad idea to be able to convene the heads of
the Eurogroup," he said.
"As to who might chair, this is of secondary significance. Unlike the
French president, I am both minister of finance and prime minister.
So I have a particular advantage in the sense that I have all the
skills to be able to fulfill both positions," he added.
========================
FINANCIAL TIMES 4.11.08
French call for eurozone summits wins scant support
By Tony Barber in Brussels
A French call for regular meetings of eurozone heads of government
drew a lukewarm response on Tuesday from countries both in and
outside the 15-nation single currency area.
Nicolas Sarkozy, France’s president, proposed two weeks ago that
eurozone leaders should meet on a regular, formal basis after a
summit in Paris on October 12 – their first since the euro’s creation
in 1999 – produced a concrete European plan for tackling the global
financial crisis.
But several European Union finance ministers said Mr Sarkozy’s
proposal, though it had merits, struck them as misguided and possibly
motivated by a desire to question the independence of the European
Central Bank.
“It’s not a new idea,” said Wouter Bos, the Dutch finance minister,
said on the sidelines of a meeting with his EU colleagues in
Brussels. “I guess it will get the same response it always has. We’re
not in favour of creating new European structures parallel to ones
that already exist.”
Mr Bos was referring to the eurogroup, a format for informal monthly
gatherings of eurozone finance ministers, as well as to EU finance
ministers’ meetings and the summits of EU leaders that are held at
least four times a year.
A minister from a non-eurozone country [Why so coy? WHO? -cs] said
his government was wary of Mr Sarkozy’s proposal because “nobody
likes to be left out of something”.
However, he added that the fundamental objection to the French
suggestion was that it risked compromising the ECB’s ability to
conduct monetary policy free from political pressure. “We’re very
Germanic about this,” he said.
Diplomats from eurozone countries said that – apart from Germany –
Austria, Finland and many others shared this point of view. Few had
forgotten how Mr Sarkozy launched France’s six-month EU presidency in
early July with a barrage of attacks on the ECB’s interest rate
policies, they said.
Some officials also pointed out that the October 12 meeting in Paris
had not, strictly speaking, been a eurozone summit because Gordon
Brown, the UK premier, was among the most active participants at the
talks.
However, some countries acknowledge that France has a point when it
argues that meetings of eurozone leaders would help plug a possible
gap in European policymaking next year, when the EU’s rotating
presidency will be held by two non-eurozone states – the Czech
Republic and Sweden.
French officials say it would be logical but not essential for Mr
Sarkozy to chair such meetings next year, before handing the baton
over to Spain, a eurozone country that takes over the EU presidency
in January 2010.
If other countries preferred a different chairman, such as Jean-
Claude Juncker, the Luxembourg prime minister and head of the
eurogroup, that would be acceptable.
“The important thing is to keep the momentum and energy that started
in Paris on October 12,” one French official said.
but more importantly perhaps is the rejection of Sarkozy’s plans to
take more control of the EU in generalk into French hands.
Sarkozy has already rubbed up the wrong way a number of EU leaders
especially those in Sweden, and Poland as well as Chancellor Merkel
in Germany . He is giving a great example of ‘How to lose friends
and antagonise people’.
It was in January of this year that the FT reported - - -“Angela
Merkel, the German chancellor, rejected France’s proposal for a
“summit” of the eurozone’s heads of states and governments on
Tuesday, saying it was “unnecessary” and potentially “divisive.”
This will spill over into other fields as well as economics - defence
for a start - and will leave France under Sarkozy with one close
friend - Gordon Brown .
xxxxxxxxxxx cs
=======================
EU OBSERVER 4.11.08
Juncker rejects Sarkozy's 'economic government' for eurozone
LUCIA KUBOSOVA
BRUSSELS - Finance ministers from the 15-strong euro area have
agreed to drop the goal of balancing the budgetary deficits by 2010,
while concluding that the bloc does not need an extra package similar
to the bank rescue plan but aimed instead at kick-starting the
faltering economy.
Meeting in Brussels on Monday (3 November) on the eve of a full EU
ministerial session on finance, the ministers decided that their
previous medium-term objective of zero deficits by the end of this
decade - agreed in April 2007 - "should be revised".
Instead, the goal will be replaced by individual plans for member
states "on a case-by-case basis at dates that will pushed back,"
Eurozone chair, Luxembourg's premier and finance minister, Jean-
Claude Juncker, told journalists.
The debate took place just after the European Commission presented a
grim economic forecast for 2008 and next two years, warning that in
2009, the EU's economy will reach a "stand still."
EU economy commissioner Joaquin Almunia pressed governments to
approach the problem, which threatens to severely affect jobs across
the continent, in a similar, co-ordinated way as they did when they
moved to save the bloc's banking sector.
"Looking at the need to accelerate as much as possible the decisions
that can promote a recovery based on a sound basis, this co-
ordination, this European action, and in particular this euro area
action is essential and I am very happy to see the positive reaction
of the members of the Eurogroup to these ideas," he said after the
meeting.
However, Mr Juncker pointed out that this co-ordination should not
come in form of a new package of measures similar to the bank rescue
plans that involved emergency steps such as boosting deposit
guarantees or pumping state capital into weakened financial
institutions.
"We do not believe that in the euro area we need a general revival
package, a sort of classical or traditional programme to stimulate
the short-term economy," he said, adding that the existing rules are
sufficient.
"It is simply a question of adopting targeted temporary and
consistent measures designed to help us in the short-term," noted
Luxembourg's leader.
Economic government
On Monday, eurozone chiefs of finance gathered for the first time
after several remarks by the French President Nicolas Sarkozy - whose
country currently holds the six-month rotating presidency of the 27-
strong club - about the future governance of the monetary union.
The French leader had suggested that there should be regular meetings
of heads of state and government of members of the eurozone - similar
to those that had been hosted by him under the extraordinary
circumstances of the financial crisis that had pushed Europe's
banking sector on the verge of total collapse.
This new forum could serve as a form of eurozone "economic
government," Mr Sarkozy had said in his speech to the European
Parliament last month.
But his Luxembourg counterpart, Mr Juncker, told journalists on
Monday that while the idea is not new and the French president had
argued in favour of it "on a number of occasions" before, "most
member states did not agree with that idea."
"In my view, I do not think it is a good idea to institutionalise a
meeting at such a high level, but it seems to me that whenever it is
necessary, it is not a bad idea to be able to convene the heads of
the Eurogroup," he said.
"As to who might chair, this is of secondary significance. Unlike the
French president, I am both minister of finance and prime minister.
So I have a particular advantage in the sense that I have all the
skills to be able to fulfill both positions," he added.
========================
FINANCIAL TIMES 4.11.08
French call for eurozone summits wins scant support
By Tony Barber in Brussels
A French call for regular meetings of eurozone heads of government
drew a lukewarm response on Tuesday from countries both in and
outside the 15-nation single currency area.
Nicolas Sarkozy, France’s president, proposed two weeks ago that
eurozone leaders should meet on a regular, formal basis after a
summit in Paris on October 12 – their first since the euro’s creation
in 1999 – produced a concrete European plan for tackling the global
financial crisis.
But several European Union finance ministers said Mr Sarkozy’s
proposal, though it had merits, struck them as misguided and possibly
motivated by a desire to question the independence of the European
Central Bank.
“It’s not a new idea,” said Wouter Bos, the Dutch finance minister,
said on the sidelines of a meeting with his EU colleagues in
Brussels. “I guess it will get the same response it always has. We’re
not in favour of creating new European structures parallel to ones
that already exist.”
Mr Bos was referring to the eurogroup, a format for informal monthly
gatherings of eurozone finance ministers, as well as to EU finance
ministers’ meetings and the summits of EU leaders that are held at
least four times a year.
A minister from a non-eurozone country [Why so coy? WHO? -cs] said
his government was wary of Mr Sarkozy’s proposal because “nobody
likes to be left out of something”.
However, he added that the fundamental objection to the French
suggestion was that it risked compromising the ECB’s ability to
conduct monetary policy free from political pressure. “We’re very
Germanic about this,” he said.
Diplomats from eurozone countries said that – apart from Germany –
Austria, Finland and many others shared this point of view. Few had
forgotten how Mr Sarkozy launched France’s six-month EU presidency in
early July with a barrage of attacks on the ECB’s interest rate
policies, they said.
Some officials also pointed out that the October 12 meeting in Paris
had not, strictly speaking, been a eurozone summit because Gordon
Brown, the UK premier, was among the most active participants at the
talks.
However, some countries acknowledge that France has a point when it
argues that meetings of eurozone leaders would help plug a possible
gap in European policymaking next year, when the EU’s rotating
presidency will be held by two non-eurozone states – the Czech
Republic and Sweden.
French officials say it would be logical but not essential for Mr
Sarkozy to chair such meetings next year, before handing the baton
over to Spain, a eurozone country that takes over the EU presidency
in January 2010.
If other countries preferred a different chairman, such as Jean-
Claude Juncker, the Luxembourg prime minister and head of the
eurogroup, that would be acceptable.
“The important thing is to keep the momentum and energy that started
in Paris on October 12,” one French official said.
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