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European stability union

Foreign Minister Guido Westerwelle’s visit to the Netherlands focused on European policy issues. Westerwelle had said that in The Hague too he would urge that “economic and financial policies must be more closely coordinated.” In the lead-up to his trip Westerwelle had argued in favour of a European stability union – which, he said, would necessitate binding rights to intervene in national budgetary regulations.

Federal Minister Westerwelle stressed the high level of agreement between the governments of the Netherlands and Germany, particularly regarding European issues. The Netherlands and Germany, he said, “pursue a culture of stability in Europe”. He said there was a willingness to show solidarity in Europe, but at the same time everyone who wanted to be treated with solidarity needed to “do their homework”.

This, he added, was an issue that would shape Europe’s destiny. The Minister added that Europe meant more than just crisis management. Rather, according to Westerwelle, a discussion of how to constitute Europe in the future needed to be started. The crisis, he said, had to be taken as an occasion to introduce the next step in Europe’s development: “In times of crisis it is especially important not to call into question the idea of the European Union.” In this regard, Westerwelle welcomed the decision of the new Danish Government to return to doing without permanent border controls. Freedom of movement, he said, was one of Europe’s core freedoms.

Alongside talks with his counterpart in the Netherlands, Uri Rosenthal, the programme for the German Foreign Minister’s visit also included a speech on European policy to the postgraduates of Leiden University in The Hague. Here too, Westerwelle argued for “more Europe” as a response to the debt crisis and the challenges of globalization. Westerwelle said that Europe was currently facing the most difficult test in the past sixty years. He said we could not limit ourselves to crisis management at this point, but rather needed to develop a vision for a lasting solution. The economic and monetary union, according to the Federal Foreign Minister, needed to be completed through the establishment of a European stability union. There were four key points in this regard, he said:

1. The need to coordinate economic and financial policies more closely in the eurozone and develop a culture of obligatory budgetary discipline.
2. The need to give Europe a financial constitution – including a European rating agency, equity regulations for financial institutions and stronger oversight of banks.
3. The need for a strategy to increase Europe’s competitive strength – through more investment in education, research and infrastructure.
4. The need to further strengthen the stability pact, moving towards automatic sanctions.

Overall, the Minister added, we needed to keep sight of the larger picture beyond the crisis: “Only a Europe which rests on sound economic foundations and is able to act effectively can manage the challenges that globalization poses for us,” Westerwelle underscored. The world, he said, was currently undergoing a massive shift in the balance of power, with the emergence of new players and the development of a global middle class.

Westerwelle said that Europe needed to more fully recognize the new powers as strategic partners and build up global governance together with them. He expressed his conviction that this would only succeed if the European Union’s strategic partnerships were given tangible substance.

The Netherlands and Germany as “founding members” of Europe, he said, had an important role to play in this process as “Europeans from the outset”. Westerwelle stressed, however, that this was “more than an expression of our old connections with a Europe which has brought us sixty years of peace and prosperity”. Rather, he said, it was an act arising from the sober realization that only a steadfast and united Europe could prove equal to the momentous changes of our era.

Last Updated on Tuesday, 01 November 2011 11:36