"We witnessed just another ’informal‘ meeting between national leaders, which takes place outside the formal decision-making bodies, which are the European Commission and Parliament.” explains Philippe Adriaenssens, President of JEF-Europe. ”In the last years we have seen an inflation of formal and informal gatherings that undermine the basic principles of democratic accountability and did not result in any increased efficiency at all.”
JEF-Europe is aware of the urgency of an exit strategy for the sovereign debt crisis, but considers that the shift towards a governance model leaning towards informal, intergovernmental gatherings is part of the very problem. Monetary policy has been transferred to an independent supra-national authority, the European Central Bank (ECB), which has earned the confidence of markets. Yet, fiscal policy remains hostage of intergovernmental horse-trading. JEF-Europe underscores the risks related to the creation of the European Stability Mechanisms (ESM) as a strictly intergovernmental system that is not placed under the European Commission.
“We invite the national leaders of the Euro Area to think about tackling the root causes of the fragile monetary situation instead of crafting temporary solutions on an ad hoc basis. Transferring the competence on the European Stability Mechanism to the European Commission would be a necessary and important step to re-establish democratic accountability and even strengthen the confidence of financial markets in the EU’s capability to deal with asymmetrical economic shocks." concludes Adriaenssens.