European Commission president Jose Manuel Barroso talked up the euro today as the beleaguered currency faced a growing test of credibility on world markets.
With Greece in a debt crisis and Spain and Portugal also facing public financing problems which risk destabilising the euro zone, Mr Barroso insisted the EU common currency - shared by 16 of the 27 member states - remained central to Europe’s development.
“Those who think it (the euro) can be put in question must realise we will stick to our course," he said. “The European Union has the necessary framework to address any challenge that appears in this respect.”
He was addressing the European Parliament in Strasbourg two days before an EU summit that was supposed to discuss long-term economic plans for jobs and growth. Instead the meeting will be overshadowed by the Greek crisis and the question of a possible bail-out for Athens to restore world confidence in the wobbly currency.
Germany and France are strongly resisting a bail-out, but hopes that markets will calm without intervention have proved wrong so far.
One last-ditch option is resort to the International Monetary Fund, a move which would reinforce fears in some markets that the euro is in deep trouble.
Mr Barroso was speaking to Euro MPs in Strasbourg ahead of a vote confirming the appointment of his new team of 26 commissioners for the next five years.
“What Europe needs to succeed is policies focused on results, better governance structures and confidence in our own ability to solve the problems we face," he said.
“Our common currency, the euro, will continue to constitute a major tool for our development and those who think it can be put in question must realise we will stick to our course. The European Union has the necessary framework to address any challenge that appears in this respect.”
Setting out his policy agenda for the incoming Commission team, he went on: “This is a time for boldness. I believe that our economic and social situation demands a radical shift from the status quo. And the new Lisbon Treaty allows this.”
He called for a move away from “the intellectual glamour of pessimism and constant denigration of the European Union that is doing so much damage to Europe’s image”.
He added: “We can start by asking ourselves: does the EU count in the world? And the answer is yes. But does the EU count as much as it should in the world? The answer is not yet.”
Mr Barroso promised growth, high employment and a more “inclusive” society if member states join forces. “It (the EU) is less successful when we act according to narrow national interests, in an un-coordinated way.
“Some national politicians, let’s face it, are not in favour of a more co-ordinated approach in economic policy. But if we want to overcome the crisis... and establish a good basis for a strong economic future for Europe in the globalised world... then stronger economic co-ordination is the only way forward.”
Reuters