In his last annual ‘State of the Union’ address before the European Parliament elections next year, European Commission President Jose Manuel Barroso largely avoided delving into more controversial topics, focusing instead on the Union’s successes over the past year and calls for deeper integration.
In somewhat shorter lines, addressing the plenary assembly of the European Parliament, Barroso stated this morning that signs of recovery in a number of troubled European economies mean that the EU is on the right track, but also warned that dangers to economic recovery still exist. In the introductory part, he briefly recalled what has been done since the last report, mentioning the reform of the financial sector, improved cooperation among governments, particularly in fiscal matters, and over 700 billion euros raised to assist the EU economies hardest hit by the crisis. He also mentioned the eurozone’s cohesion, despite many expectations that some countries would leave it, and the encouraging messages he received, instead of lessons from previous meetings, at the recent G20 meeting in Moscow as successes over the past year.
In line with the very optimistic tone of the speech, the Commission President listed very specific positive indicators in the most troubled member states: Spain (exports now account for 33 percent of GDP), Ireland (has returned to financial markets), Greece (deficit drastically reduced in three years, first primary surplus expected), Cyprus (everything is going according to schedule), and Portugal (growth is returning), but completely avoided the major problems that still remain in these economies, only generally referring to the largest issue, unemployment. In this regard, he called for strengthening structural reforms and expanding the single market, which directly affects both employment levels and economic growth. The Union needs integration in telecommunications (which is currently being prepared), mobility, energy, finance, etc. ‘The single market is a key lever for competitiveness and employment,’ he concluded.
At the same time, Barroso openly defended the cuts policy that the Commission imposed on some member states.
– Some say that Europe forces governments to make cuts. But we need to remind voters that public debt was out of control even before the crisis erupted, not because of, but despite Europe. We can also add that the most vulnerable, including our children, would have to pay the price if we do not persist now. After all, countries within or outside the euro, in Europe or outside it, are trying to reduce their public debts – he said.
