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A Multi-annual Financial Framework for Competitiveness and Solidarity?

Lunch debate

On the theme:

A Multi-annual Financial Framework for Competitiveness and Solidarity?

 Stefani WEISS and Carole ULMER introduced the lunch-debate

with the participation of

 Pier Virgilio DASTOLI, President of the European Movement, Italy

Roland DOLL, Vice President International Government Affairs, Deutsche Telekom

Hervé JOUANJEAN, Director-General for Budget, European Commission

Alain LAMASSOURE, MEP, Chair of the BUDG Committee, European Parliament

Jan TOMBINSKI, Ambassador and Permanent representative of the Republic of Poland to the EU

And with the support of our network composed of companies, trade unions and local representatives

Debates were simultaneously translated in both English and French

ISSUES

The current financial crisis has forced all Member-States to adopt rigorous austerity measures to reduce public deficits and debts. However, this may lead countries into recession if there is a lack of stimulus for sustainable growth. The ancient concept of social market economy has to be renewed, to be now considered in the common perspective expressed in the Europe 2020 Strategy: that of a new sustainable growth and a new social welfare. To do this, we need a budget that is innovative. A budget that is attuned to the new realities of globalisation. A budget that responds to today's challenges and creates opportunities for tomorrow” explained José Manuel Barroso while presenting the new Multi-annual Financial Framework (MFF). The aim of today’s discussion is indeed to evaluate the new multiannual financial framework proposed by the Commission on June 29^th along these objectives.

The Commission defends the idea of a “budget for integration” that would better serve the solidarity principle thanks to new own resources models rather than by the “I want my money back” old scheme. A financial transaction tax would be key to foster social acceptability, but does it have an impact on EU competitiveness?

On the expenses side, the focus is clearly put on competitiveness and smart and sustainable growth. Long-term investments - investment in the development of natural capital, in productive infrastructures and infrastructure of services – receive a renewed attention in the Commission’s proposals that need to be analysed. But is the MFF fit to deal with both objectives of competitiveness and solidarity? For instance, is the challenge of a new social welfare better oriented towards a better use of human capabilities, and are the links between cohesion and competitiveness clearly thought?

Finally, the Commission acknowledges that fact that such a renewed budget should be discussed transparently and openly in order to involve national parliaments and all European citizens, a long-standing claim from Alain Lamassoure.

More information on the November 2011 European Economic Debates (Entretiens Economiques Européens or EEE

More information on the LUNCH DEBATE CYCLE: For a Social Market Economy: Reconciling Competitiveness with solidarity