EU / member state “contracts” that divide Europe

Letta was in favor, but the European Socialists (even the MEPs of his own party) were opposed. The issue is on the table at the next European Council

During Prime Minister Enrico Letta’s speech on the vote of confidence Wednesday, he confirmed he is in favor of “contracts” between member states and the EU, intending to secure the path of reform. He won the vote of confidence, but in the European left – and even in his own party – there is not a solid agreement and Parliament for the most part seems absolutely opposed.

Letta said that now you have to “fight to give the euro zone a financial capacity that encourages member states to finish the last mile of the reforms and make them more resilient to economic shocks.” According to the Italian prime minister “if this step towards a true European solidarity is made, then we would not be afraid to consider establishing a contractual arrangement for structural reforms and we would work to ensure that they are called ‘contracts for growth’, voluntary and linked to financial incentives.”

In Italy the issue was not commented on much but in Strasbourg it was, and not exactly with positive words, even from important members of the Democratic Party. The European Parliament seems quite contrary to these “contracts.” Guy Verhofstadt, Head of the Liberals believes, and is probably right, since it is essentially about bilateral agreements, they are “the end of the European Union.” But also Roberto Gualtieri (an ‘up-and-coming ‘ in the DP – the Prime Minister’s party – who has been involved in all the most sensitive dossiers in recent years) does not seem to be in favor: “They will have a very difficult life in Parliament.” Hannes Swoboda, Head of Socialsts and Democrats, cut to the chase: “This is not what we want.” The Greens party colleague, Rebecca Harms, is on the same page: “We will never approve it.” Doubts were also expressed by the members of the People’s Party exponents.

These “contracts” will be discussed at the European Council next week, where the Lithuanian President announced that, “the principles should be finalized.” Maros Sefcovic, Vice-President of the Commission, speaking in the chamber, said that through these instruments “it will be possible to provide financial incentives to achieve the reforms,” as Letta asks. But the European center-left and some in the Democratic Party do not agree. Will Parliament create a battle of principle this time too, in essence, to later accept the will of the government?