european council

By Christophe Cung. Translated by Leo Wasley

As the Roma community becomes the pariah of Europe, will the European Council take time to finally address this issue?

By Maxence Peniguet, translated by Rose Kelleher

It's going to be a big day. The extraordinary summit on Libya and Europe's southern neighbors is due to address sanctions against the Qaddafi regime. Council members may possibly decide to officially recognize the Transitional National Council of Libya as a legitimate interlocutor. In the late afternoon shift, there will be discussions on the competitiveness pact launched by Nicolas Sarkozy and Angela Merkel in early February.

By Eva Donelli

16-17 December's European Council meeting has produced "a very positive outcome", according to Italian Prime Minister Silvio Berlusconi: “an efficient team work that allowed the achievement of perfect consensus.”

The members of the Council agreed today on amendments to the Lisbon Treaty in order to establish a permanent mechanism to safeguard the financial stability of the euro area. The idea of the creation of a joint fund was launched by Italy in 2008, as explained proudly by Berlusconi and on 1 January 2013 it will enter into force.

The Eurobonds system proposed by Italian government together with the Luxembourg Prime Minister Jean-Claude Juncker has been supported by the European Parliament's resolution, as mentioned by the President Jerzy Buzek in yesterday's speech. The anti-crisis eurobonds, explained the Premier "are an excellent system" that "should provide Europe with liquidity equal to that of U.S."- “The system must be studies in greater depth and mature.”

Concerning the financial perspectives, the EU shares a common concern about Asiatic competition in particular the Chinese labour force's power. The Italian Prime Minister, coming back from a bilateral meeting with the incoming Hungarian EU president, responding to a journalist's question, affirmed that he was not concerned about the Franco-German strong influence on EU decisions: “ Italy is the third country in the EU, we are always involved in important decisions and I personally held very good professional and personal relations with the other EU leaders.”

Nothing really seems to affect the traditional optimism of the Italian Prime Minister. Not the political opposition's allegations of “having bought a couple of votes” in order to get the confidence, nor the anti-Berlusconi messages by Italian twitterers, appearing in large letters for two hours on the wide-screens in the main hall of the European Council."I am confident I will remain in office until my mandate is achieved. I am sure I have the numbers. “ he said at the end of his final press conference before leaving the summit.

By Alice Préat

The end of the Presidency of the European Union should be a joyous event. But that pride may be tarnished by the threat that Belgium's rating might be downgraded by financial rating agency Standard & Poor's. Shame Belgium cannot be a beacon of financial stability at the EU summit.

Credit ratings or debt ratings express the appreciation of the risk of financial solvency (a state, but also from a business or a transaction) and prospects for repayment to creditors. It is therefore an essential tool for investors to have an idea of the risk they take when investing.

On Tuesday, the international agency downgraded the outlook associated with the grade in Belgium. This perspective means that if the agency changes the rating in the future, it will be down. This change will not intervene immediately, "If Belgium fails to form a government, a lower rating could occur within six months," says S & P in its press release. An ultimatum to Belgium? Not only. The next day, the Flemish region undergoes the same verdict and today is the turn of the SNCB and Infrabel.

The rating agencies do not save Europe: the eve of EU summit, another rating agency, Moody's announced that it intends to review the Spanish rating. Perceived as a threat by the analysts, this statement briefly put an end to the upward trend in European equities, which had lasted for seven sessions and resumed today. Perhaps it is thanks to good news announced Wednesday when the Irish Parliament had passed the bailout. A final positive decision to reassure the markets: the Council has reached an agreement on the text for the establishment of a mechanism for financial stability. It only misses a government to Belgium!

By Maxence Peniguet

At the last European Council, the outcomes were largely the result of Franco-German decisions. The couple met again before the Council to discuss what’s to be done at this summit, and is more united than ever. Now it seems the decisions are made in Berlin and Paris just follows the dance.

Since the creation of the European Union, the two most powerful Member States have had common cause, and the balance of forces has remained more or less in equilibrium. On one hand, there’s France and its permanent seat on the Security Council of the UN, and the other, its economy and Germany's seventh heaven. And then there’s peace building.

Even if it does not show today any obvious imbalance - the Franco-German union is not what it was.

Crisis as an engine of change

With the financial crisis came a time of imbalance. Nicolas Sarkozy took over the EU presidency in 2008 and immediately initiated discussions for the European countries to stimulate their economies. Then in 2009, France kept its hand with a stronger economy, ie with a gross domestic product (GDP) that fell by only 2.6%, 4.7% against the side German. Enough power to lead.

By the end of 2010, the dance has changed pace. Germany imposes its exporter charisma, which bestows a GDP growth above 3.5%, and France had predictions giving only an 1.6% increase.

Germany's Rib

In terms of European negotiations, the last two European Councils are clearly Angela Merkel's Rib. It was she who, last October, imposed sanctions on States with overly lax economic policies. And in early December, the common view of the refusal to create Euro-bonds came directly from Berlin. Finally,the desire for harmonization of tax or labor law is more Nicolas Sarkozy’s desire, who is trying to copycat the Germanic model, than the reverse.

By Alice Préat

The end of the Belgian Presidency of the EU is approaching. This means that starting today 16 December and finishing tomorrow, 17 December the European Council is meeting for a late-presidency final summit in Brussels.

After the traditional family photo Heads of States family photo, the 27 member countries of the European Union have settled in to discuss financial stability, a subject that has received a lot of attention since the financial problems of Greece and Ireland, and rumors of disaster for Spain and Portugal.

A mechanism for crisis management has just been passed by the Parliament and it’s the Council's turn now to adopt it before its function can be defined in 2011. The President of “Eurogroup”, which brings together all the ministers of Finance of the euro area, and current Prime Minister of Luxembourg Jean-Claude Juncker, hold in esteem the notion that "a systemic crisis requires a systemic response”. He pioneered the idea of Euro-bonds, loans that would be launched jointly by several states. The idea was abandoned after coming under fire from critics, including Germany, a country with one of the lowest bond yields in Europe. Jean-Claude Juncker told the AFP that if it were up to him, he would revive the idea at the summit.

During the working dinner, the President of the European Central Bank, Jean-Claude Trichet, will discuss with the heads of states the economic situation. On Friday, the High Representative for Foreign Affairs, Catherine Ashton, will report the work that has been done on strategic partnerships. Finally, as declared by the official agenda, the Council will decide whether or not Montenegro will achieve the status of candidate country.

By Maxence Peniguet

Last night was the night. Between little phrases and important decisions, the European Council, met in Brussels these past two days, to discuss and decide on major changes to the Lisbon treaty.

Text: Zoé de York
Translation: Joan Manuel Lanfranco Pari

After having provoked a day of chaos, the Flemish liberals (Open VLD) finally accepted to sit again at the negotiation table, with the condition that trust “was restored”.

This turnaround is somewhat surprising given the fact that during Thursday 22 April the VLD’s MPs, united as never before, contemplated a strength strategy against the French-speaking parties.
Flemish parties have an absolute majority in the Belgian Chamber of Representatives and they tried to impose the vote on a law which is beneficial for them, on the split of the electoral and judicial district of Brussels-Halle-Vilvoorde (BHV).

If that had happened, this vote, considered as an attack overmuch for the francophone parties, would have certainly broken the confidence between the negotiators, like it happened in autumn 2007. Back then, a similar strength strategy by Flemish parties provoked the walkout of all French-speaking deputies in the chamber, which abandoned the hemicycle under applauses from Flemish extremists.

From the French-speaking side, VLD’s manoeuvre is perceived as a cold electoral calculation. By quitting the government, VLD’s president Alexander De Croo pretends to become the hero of the Flemish cause, hoping to obtain additional votes in the forthcoming Federal elections.

The Dutch-speaking describe the situation as a courageous and necessary decision towards the French-speaking parties, whom they accuse of constantly extending the negotiation periods without any foreseeable outcome. True, after four years francophone parties play for time and keep postponing the fixed deadlines, in the hope of obtaining more concessions from the Flemish side.

Even on 22nd April, De Croo was invoking the will to solve the situation of BHV as main motivation for his party withdrawal. Yet, he wanted to defer the debate to this summer, since the organisation of new elections would have been the most probable consequence of the Federal government’s resignation.
By returning to their decision to drop the government coalition, the Liberals would displace these elections and negotiations would resume over again.

Herman Van Rompuy: “I hope that common sense will prevail”

During the morning of April 23rd, King Albert II resumed his consultations. He met alternately the presidents of different parties in the chamber: Marianne Thyssen (CD&V), Elio Di Rupo (PS), Joëlle Milquet (CDH), Jean-Michel Javaux (Écolo), Wouter Van Besien (Groen) and Caroline Gennez (SP.A).
The monarch has four days to take a decision concerning the resignation of the Federal government.

Asked by CafeBabel Brussels during a meeting organised by the European Movement Belgium, the permanent president of the European Council Herman Van Rompuy refused to comment on the situation. He added however that he expected “as many Belgians, Flemish and French-speaking do” that common sense will prevail.
Regarding the relations between the permanent presidency of the European Council and the Belgian rotating presidency of the Council of the EU, he declared: “we are in an exceptional situation where my predecessor (ed. note: in the position of Belgian Prime Minister) is also my successor. Hence, I do not think that in human or institutional terms we will have big problems.” Herman Van Rompuy declared that he was “looking forward to working with the current renovated, refreshed and resettled government”.

Text and Photos by Laura Diaz Calvo

For someone who likes media and information a first experience at European Council in the Justus Lipsius building, can be a very interesting experience. I’m not talking about watching all the European Heads of States or Government together and deciding on a last rescue plan to face the crisis, in this case for Greece. No, I’m talking about the journalistic dynamics and about news running in corridors and knowing what will be in all world’s media as we speak.

By Annabelle Hageman
Photos: Council of the European Union

Not even a month ago, all 27 Heads of State or Government where gathered in the Justus Lipsius building. Today, they are here again and nothing changed, well except maybe the Belgian Prime Minister. The Council is still chaired by the Swedish Prime Minister, Fredrik Reinfeld as our President, Herman Van Rompuy will only chair as of January 2010. What hasn't changed either is the presence of the Cafebabel Brussels team.