French President on key EU summit
European Council – Press conference given by Nicolas Sarkozy, President of the Republic (excerpts)
Brussels, 30 January 2012
THE PRESIDENT – Ladies and gentlemen,
This won’t be a press conference because, basically, everything happened exactly as we’d planned during this working meeting; nothing was decided that you don’t already know.
Euro Area treaty
Regarding the treaty, things worked as planned: the implementation of the agreement negotiated on 9 December and the meetings in March and July have been planned as indicated. The treaty will be put in place. The progress of Euro Area governance is also taking shape as we’d called for, and let me simply add that the Euro Area will meet at the level of the heads of state and government of the 17 in order to discuss the Euro Area’s problems.
And when we take decisions concerning competitiveness – the Euro Plus Pact that we negotiated – we’ll invite those who want to join the Euro Area and aren’t yet in it.
So economic governance will be ensured by the 17 heads of state and government, at meetings to be held in the form of summits – as many as needed. So this governance, which we’ve very much wanted to see for many years, is being established and will be translated into the treaty we’re currently drawing up, which we expect will be adopted in March, I think. (…)
Q. – With regard to the agreement you’ve just mentioned, is it true that, in addition to Britain, the Czech Republic has chosen not to apply it, or to withdraw from it? And secondly, did you discuss the Greek situation, is there any progress, and in what terms?
THE PRESIDENT – The Czech Prime Minister told us he didn’t want to adhere to the future treaty, for constitutional reasons. We noted that decision, which in a way clarifies things. Now, I don’t know the practicalities of politics in Prague well enough to know why what was acceptable in December no longer is today; I know nothing of that; but there you are, it’ll therefore be a treaty among 25, because the Prime Minister of Denmark told us, in contrast, that her parliament would authorize her to ratify the treaty. So it’ll be a treaty of 25.
Greek debt crisis
Yes, there was a report by the Greek Prime Minister on the situation in Greece, which wasn’t debated because it wasn’t the place; as you know, this was a meeting of the 27. On the situation in Greece, what I can tell you is that the negotiations are moving in the right direction and we’re hopeful there will be a definitive agreement on Greece’s situation, let’s say in the next few days. It’s working well but it wasn’t, as it were, the purpose of the meeting of 27 heads of government because the problem of negotiation on Greece is a problem between the private sector, possibly other European institutions and Greece; it wasn’t really a problem for the 27.
Q. – Still regarding Greece, I wanted to know your opinion: do you think Greece’s recovery must be managed from Athens or – as some people on the other side of the Rhine have said – from Brussels?
THE PRESIDENT – Under no circumstances. Greece’s recovery can be brought about only democratically by the Greeks, who must keep their word, and she’s a sovereign country. Consequently, things have to be done through them. It’s absolutely right for there to be step-by-step monitoring of the commitments the Greeks make. But there can be no question of putting any country whatsoever under guardianship. Moreover, having talked to the Chancellor about it, I can tell you that’s exactly her position – at any rate, as she’s explained it to me. And you were right to use the expression “some people on the other side of the Rhine have said”: it’s not a position that’s been expressed, let alone upheld, by Chancellor Merkel. That doesn’t mean there mustn’t be any monitoring of the commitments, but clearly you can’t put a country under guardianship like that and manage it from outside. That wouldn’t be reasonable, democratic or, as a matter of fact, efficient.
European Court of Justice
Q. – Has the issue of the Court of Justice been resolved in the treaty?
THE PRESIDENT – Yes, it’s been perfectly resolved. And we really did get onto, as it were, the details of the implementation of the agreement we’d negotiated – I think it was on 9 December, if I remember rightly – so it’s about putting the agreement we reached into legal form, step by step. And in the agreement we’d reached, the Court of Justice couldn’t cancel a budget – it could barely check the compliance of the golden rule adopted by this or that state with the European commitments made in the future treaty. So that problem wasn’t even mentioned. The problem which was mentioned was about the Euro Area meetings: when must they be among 17? When must they be broadened to those who aren’t yet Euro Area members but want to join? That was one of the problems under discussion, which we settled in the way I told you just now. (…)
Europe/growth/jobs/competitiveness
Q. – The growth forecast for 2012 has been revised downwards. Today it stands at 0.5%. To what extent does this affect France’s ability to meet her European commitments?
THE PRESIDENT – (…) The Prime Minister announced the growth forecast just now; it’s a matter of credibility. It stood at 1%, if I remember rightly; the Germans revised [theirs], it was much higher, at 2% I think, and it’s gone down to 0.75%; ours stands at 0.5%. That changes nothing in terms of respect for the commitments, because – as I’ve had the opportunity to say – we’re ahead on the deficit reduction timetable. So it’s simply an adaptation – and I also admit very willingly that we’re in the realm of forecasts – and this must all be handled with great caution, because it depends on our ability to halt the financial crisis, and it would be a very major step if, in the coming days, we managed to resolve the Greek issue, which has been poisoning Europe’s schedule for months.
Q. – Regarding Greece, you told us it was negotiation between the private sector and the Greek government, but you also alluded to other European institutions. What do you have in mind? Do you believe the European Central Bank or central banks or establishments like the Caisse des dépôts (1) in France should accept a below-par rating on their Greek bond portfolios? And a second, quick question on the treaty: do you think it will be possible to ratify it in France before the election?
THE PRESIDENT – (…) I said “European institutions”; I won’t be any more specific, but to my knowledge the Caisse des dépôts isn’t yet a European institution. The European institutions will decide for themselves, independently, whether or not there are grounds for giving a helping hand to definitively resolve the situation, which must be resolved definitively because it seems to me this will give the Euro Area a huge confidence boost.
As for the treaty, we should adopt it here in March. And you ask me if we could ratify it before the presidential election – i.e. before the end of April or the beginning of May. (…) During the presidential campaign, parliament doesn’t meet, so it’s difficult to get a treaty ratified by a parliament that’s no longer in session. (…)
Q. – What measures were identified for boosting jobs and growth in Europe?
THE PRESIDENT – Well, there’s a whole raft of measures that you’ll see in the communiqué on the best use of structural funds, on training and work-based learning for young people. There’s even (…) a recommendation for Europe to urge states to reduce [labour] costs by shifting their burden to indirect taxation. (…)
We all agreed that the issue of today is about growth and competitiveness and not about reducing deficits – these must go on being reduced, but the decisions have been taken and this is the way we must continue.
Q. – Is there going to be another summit on Greece in February, or in a few weeks’ time?
THE PRESIDENT – I’m not making any commitments. I can simply tell you that the negotiations with Greece are going well and we’re at a concluding stage. Does this have to be settled by the finance ministers or by a meeting of heads of state and government? This hasn’t been decided.
What is clear in our minds, on the other hand, is for this – the agreement, which also was negotiated in the night of 8-9 December – to be settled in the next few days. (…)
Sarkozy/British industry/UK and Europe
Q. – During your broadcast yesterday on French television, you referred to the disappearance of British industry. Did you talk to Mr Cameron today about the issue?
THE PRESIDENT – I didn’t want to anger you, I didn’t want to upset you, above all I didn’t want to offend you. I simply wanted to point out that our British friends – because they are our friends, as you know – chose to prioritize services, and financial services in particular, if I’ve understood correctly. And that it was a choice I respected – it’s also one which reflected our British friends’ historical ties with our American friends –, and that we ourselves opted for developing services, financial services and also industry.
It’s a particularity which brings us closer, perhaps, to our German friends than to our British friends. We’re all friends (…).
No, we didn’t talk about this at all and Mr Cameron was there, he took part in the discussions – even though, as you know, he chose not to sign the treaty, whose objectives he doesn’t share, as is his absolute right. And so now he’ll be with the Czechs – as I speak, at any rate – because, here again, I’ve been told there were constitutional problems, but I’m also very keen to say that the Czechs are our friends.
European meetings/organization
Anyway, I think it’s much better that there’s some clarification and that Europe has got over the ambiguity. Those who agree with this new treaty must say so and implement it with all requisite power. And those who don’t agree or have reservations must say, “we’ve got reservations, we’re not signing”, and I really do believe that this job of clarifying is necessary.
Europe is built on compromises, compromises have to be made, but there comes a time when a compromise that goes too far risks jeopardizing the whole structure. I think that’s really something which is important to understand.
So, there will be three levels of meeting:
For the single market, the 27 will sign;
For the Euro Plus Pact – i.e. all those who want to join the euro or are in the euro – we’ll meet as 25 or 26;
For matters concerning the euro, we’ll meet as 17.
That’s how things are going to operate from now on. It doesn’t mean there are several speeds; it doesn’t mean there are people, countries which will be left out. On the contrary, it means there are degrees of integration which aren’t the same and which everyone chooses freely./.
(1) French savings and banking institution which manages National Savings Bank funds and local community funds.