The Eurozone summit has reached a last minute deal on a financial assistance package for Greece, but it has also exposed all the weaknesses of the Eurozone and the EU. A Grexit would have meant prolonged economic misery for the Greek people, risk of contagion to other countries, and uncertainty on the sustainability of the single currency. However, the way the deal was negotiated and the substance of the deal itself raise serious concerns on the long-term prospects of the Euro and the ability of Europeans to hold together in times of need.

How did we ever arrive at this point? Since the decision to create the Euro was taken, federalists have been repeating that a single currency needs an economic and political union to support it. The Eurozone lacks the tools and resources to deal with economic imbalances between very different economies, drive economic convergence, and eventually orderly deal with the insolvency of one of its members. Negotiations between governments, each with its legitimate national concerns, produce poor results, place national democracies one against the other and generate the fear that national democracy and European integration are incompatible. The Eurozone should seize the opportunity offered by the current crisis to proceed with determination towards a fully-fledge economic and political union, as recently called for by UEF President Elmar Brok.

Political will is unfortunately very low. The recent 5 Presidents Report “Completing Europe’s Economic and Monetary Union” lacks the required ambition and a credible timetable. Fault lies with Member States that have opposed any more far-reaching plans.

In parallel, the Committee for Constitutional Affairs of the European Parliament is working on a report on “Improving the functioning of the European Union building on the potential of the Lisbon Treaty” and a report on “Possible evolutions and adjustments of the current institutional set up of the European Union”. They will be a test of the will and ability of the Parliament to develop a shared view on the future of the EU and to make its voice heard.

The last quarter has seen an impressive number of UEF activities, in Brussels and with member sections, in all fields of our organisation. We should all keep up the good work. Today it is more needed than ever.

Paolo Vacca,
UEF Secretary-General