EU summit/growth/integration

Q. – What can we hope for from the European summit of 28 and 29 June?

THE MINISTER – First of all, the concrete tools for growth – and in particular the possibility of devoting 1% of the European Union’s gross domestic product to it – must be confirmed in the discussions among the Twenty-seven.

We want the EU to commit itself: to mobilizing the structural funds, to recapitalizing the European Investment Bank, to project bonds – common loans to finance infrastructure – and to the capacity to allocate those resources to investments that will create tomorrow’s growth in all the EU countries.

The foundations of a banking union, laid during the Rome summit of the four heads of state and government – France, Germany, Italy and Spain – must also be deepened.

Finally, there’s the issue of eurobonds and of the other subjects relating to European financial stability. Europe must strengthen the existing tools, and to that end it needs a road map. The discussion is continuing. There may be disagreements, but we mustn’t dramatize them.

Q. – Yet people are anticipating disappointment at the summit…

THE MINISTER – I don’t think the subject can be dealt with in such an emotive way. On the three points President Hollande put on the table during his campaign, we’ve made progress: growth is now considered with as much attention as budgetary responsibility. And it’s understood that this growth must result as much from the deepening of the internal market as from investment in major strategic projects.

Finally, political integration can’t be the precondition for urgent recovery measures. But the strengthening of existing monetary and financial tools and the pooling of resources may justify more integrated political leadership.

Q. – Does this mean eurobonds, which German Chancellor Angela Merkel is refusing, are now a goal and not a starting-point?

THE MINISTER – On this subject, the discussion with the Germans is interesting. It mustn’t be paralysed by tensions. There’s respect for each party’s stance and a need for pragmatism.

Q. – What concessions are possible for France?

THE MINISTER – The problem is austerity, which undermines people’s hope and leads them to turn towards populism. It’s a considerable danger for democracy. So we must know what tools we can equip ourselves with collectively in order to tackle the crisis effectively. Once again, we must be pragmatic and draw up a road map addressing the dual issue of concrete instruments to boost growth and more effective financial and monetary policies. At the same time, we should envisage the more integrated political leadership that must result from this.

Q. – Are the Germans bluffing when they demand this political integration as a means of refusing certain demands?

THE MINISTER – Nobody in the EU imagines we can go further in strengthening financial and monetary union without considering the integration that these shared tools demand. We have no reason to reject this debate.

But it’s not the core of the subject. In a word, responses to the crisis are needed now. And by providing those responses now, we’re making possible the institutional changes those responses will make necessary.

Q. – Isn’t there an urgent need, after more than two years of crisis, to show results?

THE MINISTER – What counts isn’t the pace, but those concrete results. They exist: I’ve already mentioned the possibility of devoting 1% of the EU’s GDP to growth, and of strengthening the banking union and the financial stabilization tools. I could also cite the financial transaction tax, which only a few weeks ago couldn’t be envisaged. Today, enhanced cooperation is emerging. That’s better than getting a stock exchange tax passed in one’s own country alone!

Q. – After denouncing the “Merkozy” – Merkel and Sarkozy – axis, isn’t President François Hollande in the process of creating a “Merkollande” axis?

THE MINISTER – Our approach isn’t about the French and Germans meeting to sort everything out themselves. We talk to everyone. The Franco-German engine must play its role, of course. But it doesn’t exclude close relations with the other countries.

Q. – By setting himself up as the spokesman of southern Europe, M. Hollande has attempted to create a balance of power with the Chancellor. Has this borne fruit?

THE MINISTER – Our approach isn’t to lead the southern countries against Germany. Europe is single and indivisible. It’ll be stronger if it overcomes the obstacles that weaken it. (…)./.