Letta: EU didn’t deserve the downgrade but with banking union we give the right answer

According to the Italian Premier, “Europe is still under observation:” we don’t need “Santa Claus” to get out of this crisis but “prudence of a good family man”

Of course the news is not exactly worthy of rejoicing, but to see it turn up today at the Summit of Heads of State and Government of the 28 states, Enrico Letta nearly interprets a confirmation. The step forward on the Union Banking which was just completed, was necessary and it is even more so in light of the downgrade from the rating agency, Standard & Poor’s to the detriment of the EU. While not believing that “they deserve the European budget and outlook,” the prime minister admits that the downgrade means something: “The transition from the crisis is not over; Europe and the euro are still under observation.”

In this situation we need “attention, care and choices at a determined European level, so as not to ruin the results.” Letta replies to “all those who wish there were a Santa Claus,” that to truly come out of the crisis, we actually need “the prudence of a family man.” This is precisely the direction in which the agreement on the banking union must go. It is fundamental, according to Letta, “if we think of the taxpayers’ money that has been thrown away to rescue the banks.” If there had been a Banking Union three years ago, he said, “Europe would not be fastened into the crisis in which it is tightened” and “we would not have the social consequences that still creates many problems today: loss of jobs, closure of businesses, credit crunch.”

Sure it’s no bed of roses and even if the agreement contains “very important measures in perspective” like “mutual funds for bailouts,” Italy also has some objections. “We would have liked more community methods, but there was a compromise,” he admits. Not only that. Another thing our country doesn’t like is the transition period identified for the implementation of the single resolution fund: “I consider 10 years a time limit, the transition should come much earlier;” insists Letta, without, however, wanting to indicate what would be a more acceptable period of time. “Every day, every month, every year gained is positive” merely hope: “Some transitions will occur in the next two years, during this time we will understand how this acceleration can take place.”

On the postponement of the contractual arrangements, contracts between states designed to reward those virtuosos implementing reforms more quickly, who the Council has decided to postpone until October, 2014, Letta said: “The issue is not yet ready.” The Italian prime minister claims to have insisted with the leaders of other states, “on the fact that any instrument needed to bind countries together even more is a good thing.” Discussing this during the Italian presidency will be “important and useful” for us, concludes Letta.

“Strategic,” according to the Premier, including the debate on security and defense policy: “Greater integration means less overlap and therefore saving money compared to costs of defending individual states. It is the only way to spend less without jeopardizing European citizens’ security.” Letta says that for Italy the decision to launch a maritime strategy of which “we decided to follow the application with the Greek Presidency,” it is an important point.

On the immigration issue, the Summit of Heads of State and Government confirmed its support to the five lines of action identified by the European Commission: cooperation with third countries; strengthening channels for legal entry into Europe; battling human trafficking; reinforced monitoring of borders; solidarity to member countries undergoing strong migratory pressure. Now, “the work begins for the June Council, who will cover the rules and we expect that the Commission’s communication will be implemented rapidly,” Letta explained. Our intention, he added, is “to develop an Italian initiative, strengthened by the results obtained in Mare Nostrum to a maximum.”

Letizia Pascale