Barroso: “We are emerging from recession, but we cannot say the crisis is behind us”

The President of the European Commission during his speech in Strasbourg: “We should avoid any kind of complacency, with such high levels of unemployment and with many of our companies still lacking the financial means to create jobs.”

From our correspondent in Strasbourg Alfonso Bianchi

 “The recession is behind us. But we should avoid any kind of complacency (…) we cannot yet say we are out of the crisis.” That’s what José Manuel Barroso, President of the European Commission, said during his speech on the review of the Lithuanian Presidency at the European Parliament plenary session. Barroso told the MEPs that “with such high levels of unemployment in some of our Member States” and “with many of our companies – especially SMEs – still lacking the financial means to invest and create jobs” there’s still lot to do. Nonetheless, there are reasons to be confident, given that some of the most catastrophic previsions have proved wrong – “some people predicted the implosion of the euro.” Now, “with consumer and investor confidence resuming, a timid growth is expected.”

However, the EU still has a lot of work to do, getting ready to overcome new, potential financial crisis. Hence, “for the months ahead, our top priority should remain the banking union.” According to Barroso, the Commission would have preferred a system “fully based on the community approach” given that “we are concerned that the introduction of an intergovernmental dimension to address the transfer and mutualisation of funds undoubtedly adds further unnecessary complexity.” Following the compromise reached back in December, the transfer of national funds towards the Single Fund and the activation of the mutualisation of the national compartments would be provided for in an inter-governmental agreement. The European Parliament criticized the mechanism – given that it implies its total exclusion from the decisional process. On the other hand, the solution shall allow the governments to preserve their full and total responsibility for the operation, without introducing a financial mutualisation into the European institutional framework.

At the same time, Barroso highlights that “no other approach would obtain the necessary support in Council” hence the question is “Can we afford to waste the opportunity to reach a final agreement before the end of this Parliamentary mandate? Can we afford to put at risk the emerging signs of returning confidence?”

That’s “what is at stake” according to the President.