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Commission Program
2014-2019
Guy Verhofstadt
Using the European
Dividend
to
Exit the Crisis
2013
Source: IMF Data Mapper
Public Debt 2013
Source: Eurostat
Source: ECB
Source: Transport Intelligence
Fixing
the
Economy
(1)
1. Speeding up the Banking Union
2. Unifying the Capital Markets
3. Launching of Future Bonds
Fixing
the
Economy
(1)
1. Speeding up the Banking
Union
1. Speeding up the Banking Union
- 10,5 %
in 6 years time
Source: ECB
Fixing
the
Economy
(2)
4. Creating a European Energy Community
5. A Digital Fast Forward
6. European Mobility Promotion Scheme
7. A New Economic Governance Model
4. Creating a European Energy Community
5. A Digital Fast Forward
6. European Mobility Promotion Scheme
10 %
2.5 %
strong
Strong
Civil
Civil
Liberties
Liberties
1. 21st century Privacy Protection
2. European Anti-Discrimination Legislation
3. A Common Immigration Policy
4. European Cross Border Prosecution
5. European Defense Community
strong
Civil
Liberties
1. 21st century Privacy Protection
Right to be
forgotten
&
Privacy by
default
A
Commission
that
governs
1. Full use of the right of initiative
2. Single seat saving 200 mln. euro
3. A slimmer and clustered Commission
3. A slimmer and clustered Commission
N
www.guyverhofstadt.eu
"Using the European dividend to exit the crisis"
Program of Guy Verhofstadt for the
Presidency of the European Commission
(2014-2019)
The initial EU project started as a cooperation in the strategic sectors of coal and steel. It brought us peace.
The European project turned into a customs union with a strong competition authority and a growing internal market. It brought us prosperity.
Europe has provided a real dividend for its citizens. A project that turned a profit. An EU that did not - as some claim - start as an economic
project alone, but as an unambiguous political project. A project of historic reconciliation. It has been so successful because it has done both at
the same time: economic and political integration. Providing us with peace, stability and prosperity.
Yet despite these achievements, we are today in a deep crisis. A deep economic crisis. And a very European crisis. As the rest of the world is
growing again and we are stuck in recession – at best in stagnation (slides 3 - economic growth figures by continent)
The reason is very simple (slides 4 and 5 - figures public and global debt in the member states of the European Union). We have too much debt
and too little integration of our markets and policies. A bad combination.
Nationalists believe that is it by retreating behind our national borders that they will find prosperity again. That problems such as climate
change, illegal migration and mass unemployment will simply disappear. And this in a globalised world. They are selling empty dreams of a
past that never existed. (Slide 6: EU as biggest trading place in the world)
Conservatives however, believe that the crisis is more or less over. That growth is returning and that we do not need a fundamental change in
the European construction. Such an attitude is at best wrong and at worst irresponsible.
Socialists think that it is possible to spend ourselves out of the crisis, denying that we have already huge debts and that these debts are at the
origin of our problems. Already today, many of our southern countries are being crushed by the cost of debt servicing rather than using this
money for future orientated investment. Surely creating even more debt can only be a recipe for disaster.
*
*
*
So my plan for Europe is clear. And different. We need a further decisive step in the European integration as the fuel for new growth in Europe.
As the fuel for recovery and innovation. A new dividend of integration. And using a tried and tested method. The Delors method. Used in the
early 1990’s with the White paper for Growth and Competition. By breaking down the borders. And expanding markets.
Well, I intend to do exactly the same. Without increasing debts. Yet providing an exit from the crisis. By launching a new leap forward in
European integration. Using the further integration of our continent as an engine for growth.
My plan for the next five years contains three concrete actions.
Fixing the Economy and Creating New Jobs
We shall exit the crisis by lowering the costs and increasing the overall competitiveness of our European economy, never forgetting that jobs
are created by growth and by innovation. To realize this we will start and speed up the integration process in key areas of our economy.
1) Enlarging and completing the banking union
This is necessary to restore the transmission mechanism between banks and the real economy which remains broken (slide 8 - figures
illustrating the ongoing credit crunch). Therefore the common bank resolution fund must be fully operational as soon as possible. For this, the
ECB should provide a new credit line (LTRO) to banks that they shall use to pay their contributions to the fund and to increase drastically the
amount of cheap credit towards (small and medium sized ) companies. At the same time we need to start cleaning up banks’ balance sheets.
2) Unified capital markets
We need to make it possible for business and companies to borrow in any Member State of the Union using collateral in any other member
state and without paying a premium. The full integration of our capital markets and the removal of cross border restrictions is key to increase
the liquidity in Europe and to bring down interests rates for business and companies.
3) Future bonds
Investment in innovation and infrastructure is key to the Union’s recovery. The European Central Bank, the European Commission and the
European Investment Bank should create a new vehicle to issue on a large scale so-called Future Bonds to provide the necessary funding for
projects (transport, internet infrastructure, energy grid) which provide real return. A significant portion of the fund shall be provided to SMEs.
4) A European Energy Community
We urgently need a single energy market and a single energy grid. The Ukraine crisis has not so much demonstrated our dependency on Russia
but more starkly our lack of an internal energy market. The single energy market and grid will drastically bring down energy prices for
consumers and companies and also provide common investment and innovation in this field. (slide 10 – EU energy dependency)
5) A unified digital market
Only with a larger digital market can we expect leading digital companies to emerge (slide 11 - worldwide leading tech and internet
companies: emptiness in Europe). And we need to play to our strength by exploiting our concern for private data as a motor for innovation and
growth.
6) Labour mobility supporting scheme
Labour mobility is low in Europe (slide 12 shows the difference between the US and the EU). On top of that, more than four million job
openings in Europe are vacant. Mobility across the EU has to increase so that workers are encouraged to move from low employment areas to
high employment regions. Skills can also be better matched with demand. The Union should fund a Mobility Promotion Scheme that carries the
burden for the first six months and that is based on the workers country of origin minimum wages in order to prevent so called welfare
shopping.
7) A new economic governance model
It is crucial to have a more effective Commission that takes initiatives in the interest of all, not least in the completion of the Single Market. But
a real convergence mechanism is also needed, obliging Member States to work towards joint goals. This cannot be imposed as a diktat from
Brussels through contractual arrangements as currently envisaged by the Commission. It requires common objectives and parameters (on
pensions, labour markets, productivity, investment in R&D and education) that offer incentives to those that achieve them. A Convergence
Code that provides solutions that are in the interest of all, fostering competitiveness and generating jobs and growth throughout the EU.
Protecting Privacy and Civil Liberties
Unlike many of the other candidates, I have always put civil liberties and the defence of fundamental rights at the heart of my policies. I want to
ensure that the new Commission acts as a real guardian of the Treaties and steps in effectively when governments trample over the
fundamental principles that are at the basis of our Union of values.
1) 21st century privacy protection.
We need strong data protection and privacy rules. These must be based around the principle of ‘privacy by default’ whereby nobody can have
their data shared without explicit authorisation, and the 'right to be forgotten'. It is also essential to ensure that in the future all legislation has
an in-depth "fundamental rights checks" relating to the collection, processing, transfer and storage of data. To verify if they are necessary,
adequate and proportionate.
2) European anti-discrimination legislation
We need to have a modern EU anti-discrimination law. Our society can no longer tolerate discrimination and differentiated treatment from
one country to another.
3) A legal common immigration policy
Poverty and insecurity abroad will continue to push many to cross our borders and seas in search of a better life. No country can manage this
on their own. At the EU level we can find common solutions, by burden sharing for the people in need, and managing immigration through
chosen channels. We need to turn immigration into a force of good for the European economy and society. This means making our direct
neighbourhood safer and the development of a system of legal economic migration such as is the case Canada, the USA and Australia.
4) A European prosecution
Crime doesn't respect national borders. So we need stronger tools. A first step is the setting up of a European Public prosecutor that provides
effective prosecution of cross border criminals. And we also need to enhance equal justice for all our citizens.
5) European Defense Community
A new strategic concept must be developed based on 21st century policy requirements. In times of limited funds, economies of scale can
produce huge gains in effectiveness are required. A Europe army would dramatically reduce the costs incurred by duplicating 28 times the
same activities and provide greater effectiveness. Equally, the foreign services of the Member States employ over 90,000 people whereas the
USA only 28,000. The gains in cost and effectiveness are clear. We will only have a foreign policy that will enable the EU to become a global
player if we put at our disposal the rights tools.
A European Commission that Governs
The Union needs new and bold policies, but it also needs to adjust its governance model to be effective and efficient. Primarily it needs to have
at the top of the Commission greater leadership and decisive decision making in the interest of the Union as a whole.
1) Full use of the right of initiative
Europe needs a Commission that takes the lead and does not settle for a compromise based on the interest of a few, often large, Member
States. It should deal with problems that transcend national borders. It must start to be the real government of Europe.
2) Cutting waste – Single Seat
We need a single seat for the EU institutions bringing an end to the waste and travel between the cities of Brussels, Luxembourg and
Strasbourg. This will save £150m and almost 20,000 tonnes of CO2 emissions annually. And provide better coherence.
3) A slimmer and clustered commission
The Commission needs to be modernised in its internal functioning and be organised in clusters to deliver better joined up policy and
strengthen its actions. A more stringent form of subsidiarity and proportionality check must be undertaken, followed by an extensive impact
assessment (slide 16).