“We want to put into place with the European Commission a plan for the development of electric cars,” Zapatero announced to the European Parliament in Strasbourg, in a speech that was received with lukewarm applause. Zapatero reiterated that the new strategy - set to replace a 10-year plan that failed to turn the EU into “the most competitive and dynamic knowledge-based economy in the world” by 2010 - needs to have binding targets. “If it is to function, the EU needs sanctions,” he stressed, warning that if the current non-binding mechanisms are maintained, EU leaders will find in 2020 that their plans have failed again.

 

Zapatero’s proposals were criticized in January by Germany, the bloc’s largest economy, but received support in the parliament by European Commission President Jose Manuel Barroso. He said that the new Lisbon Treaty, which has reformed the EU’s workings, already gives him the powers to issue warnings to national governments. “We don’t need to invent new instruments,” he assured. Zapatero, whose country is in the midst of a deep economic recession – said he was a “firm believer” in balanced books “over the economic cycle”, even though Spain’s deficit is set to reach 9.6% gross domestic product (GDP) in 2009. The EU’s stability and growth pact sets a limit of 3%, but temporary exceptions have been made in view of the economic crisis. “I can assure that my country is going to respect the agreements with the commission to bring deficit to the 3% level by 2013,” Zapatero declared.

 

His ideas for the 2020 economic strategy also include a push to reduce energy dependence on foreign countries, the development of the digital market and green technologies, and an emphasis on education and research. The Spanish premier’s role in foreign affairs has been reduced by the Lisbon Treaty, which created the posts of an EU President, held by Belgium’s Herman Van Rompuy, and an EU foreign policy chief, Britain’s Catherine Ashton. Zapatero is set to preside alongside Van Rompuy over all EU summits with third countries in the next six months.