Press Release - Conference 5 Dec 01 - The Euro - what's next? Brussels - 06.12.2001

PRESS RELEASE   -   The euro : what's next?

As the last steps are being taken to put in place euro bills and coins, 8 associations have organised at the European Parliament a conference "The euro  :what's next?" at the initiative of PROMEURO. The organisers congratulate themselves at the fact that finally will citizens have "Europe in their pockets" and Europe a stable currency. They wonder, however, about the economic performance of the Economic and Monetary Union (EMU) and about the degree of acceptance by citizens of the conditions that will make this a sustainable Union. This conference-debate, helped assess the remarkable progress achieved so far, but also the immense task still ahead to raise citizens' awareness so that the single currency can become a driving force of the European economy. Only a few days away from the Laeken Summit, it seems more appropriate than ever before to send a strong signal to the participants that they need to give a new start to the political, economic and social construction of Europe.  

BRUSSELS, 5 December 2001. The European Parliament was the scene of a debate on the "after-euro" period. More than 230 persons registered for the 3 sessions that covered the economic, institutional and political implications of the euro.

In only a few days the euro will have fossilised our national currencies. Never in the history of mankind have so many people voluntarily cast off the very symbol of their sovereignty to share in a collective future. The replacement of 12 national by a common one is an event to be celebrated, but the euro is not the cornerstone of the Single Market: it is, instead a tell-tale sign of the inadequacies still to be corrected in order for this Market to deliver its full economic potential.

Beyond the symbolic aspect of a unified currency for Member States, the euro's challenge is to boost the ailing economies, as in 1958 when the Treaty of Rome and the birth of the common agricultural policy, enabled the launch of Europe. We now find ourselves in a similar position as 40 years ago, but with more dangers from economic and market internationalisation.


The forgotten E in EMU

"Europeans must face reality: they have made a masterful move in accomplishing the "M" of the Economic & Monetary Union (EMU), but there remains a long road ahead before accomplishing the "E"" observe the organisers of the conference. The European economy is becoming much less national. Commercial exchanges implicating more than one State - in the form of exports or import within or outside a euro-zone Member country - represented less that 30% GBP in 1990, and will represent more than 40% by 2002, in other words close to 1% growth per annum. The persistent use of radically different national systems with different fiscal regimes, commercial laws and administrative procedures restricting unduly free circulation of people, goods and funds within the Single Market.

While the "M" is managed by a Central European Bank at the centre of a European System of Central Banks (ESCB) and is well structured and capable of fulfilling the needs of the European monetary system, the "E" is instead managed by the informal ?-Group. This group is made up of national ministers representing 12 public finances and economies, each member able to block decisions of general interest by his right to veto. "It is not surprising that it took 30 years of discussion to obtain, in Nice, a watered-down statute for European enterprise, or that the single financial market is still awaited, with excessive duty being imposed on cross-border payments" recall the organisers. Despite all its willingness, the European Commission's senior management for Economic and Monetary Affairs lack the authority and the means to obtain essential, rapid harmonisation.


Where are we with the strategy for a society driven by the euro ?

Even if a considerable amount of work was put in to providing information on the euro, it has to be acknowledged that such information was generally aimed at the practical aspects of the single currency. Unfortunately, too little has been said of the euro as a building block of a new society, at best an outline has been sketched of the stakes. We must not therefore be surprised that the euro is seen more as an element participating in economic globalisation - a badly interpreted phenomenon disparaged by a lack of analysis - than the construction of a European project.

So far, the accent has been placed on technical aspects (euro-dollar parity, double price-displaying, the impact on prices..) of converting to the euro but very little has been said of the broader implications. Every day, in the newspapers or on television, citizens are informed of the increase in unemployment, factory closures and a chain of redundancies. Their initial reaction is to point an accusing finger at the scapegoats, supporters of globalisation, national governments and. Europe, still to widely seen as a large technocratic "thing".

Structural adjustments, although necessary because of an ageing population, and introduced by the new rules written in the Union's Treaty as well as in the participation criteria of EMU, are often greeted with opposition, even strikes at times, that weaken our economy a little more each time.

We constantly need to explain that Europe also means increased revenues for the poorer member countries. These countries, together with regions that benefit from community support, have seen their economies strengthen for the benefit of their citizens. For instance, the Irish have a higher average income today that the British or the French; unemployment in Spain has fallen from 23% to 13%. Unfortunately, this sort of information does not make the headlines. Community solidarity is a less blatant phenomenon than factory closure.

.. and European citizenship?

After the « no » received in referendum on European questions in Switzerland, Denmark and Ireland, how many more « no-s » must we absorb before realising that only a more active participation on behalf of the citizens for the construction of Europe will enable us to accomplish the objectives. Have we, for example, explained to the Belgians that they have the highest national debt in Europe with over ?25 000 per habitant and that this level is intolerable? The first step would be to pay off the infamous democratic deficit that has so far characterised the construction of Europe. "To do this" proposes Jean-Jacques Schul, President of PROMEURO, " one could envisage to create, in all the major European cities, institutes of European citizenship that would promote school curricula on this subject and encourage the population to participate in elections, notably European ones. The euro's success depends on this because.."without European states, the euro will never be a credible international currency".

In 25 days the miracle will be accomplished: the euro will definitively become the symbol of our belonging to one community stretching from Helsinki to Lisbon and from Athens to Amsterdam. And the associations that have laboured for the last 10 or more years to accomplish this will finally be able to relish in their success.


But over the coming weeks, or even months, Promeuro and other such organisations entrusted to elucidate the European monetary policy will begin their swansong. Ironically, there still remains the immense portion of information for developing the implications of the euro as an economic and social project.

We must explain, over and over again, that the euro will not act as a magic motion. In the same way as globalisation implies abandoning protectionism, the euro means that there is no turning back and that the interdependence of European economies constitutes an advantage in a world that moves. We must stop the spiral of euro-scepticism. It is a long and exacting task. Citizens must not be deprived of these tools of understanding.

And the organisers of the conference to conclude "It is imperative that the miracle propagates to the economic and political sectors: Laeken is the summit of all hopes. Another Amsterdam or Nice would reinforce the scepticism that surrounds, more and more, the construction of Europe. A stand taken by the majority of Member States in favour of the construction of Europe will boost our economy and reinforce European citizens' confidence in the future of their new currency."