G20 summit opportunity for EU to speak with one voice

Author: Vladimira Briestenska
2 April 2009 - Issue : 827

The European Economic and Social Committee President Mario Sepi called upon EU leaders on April 1 to present at the G20 summit in London with one unified voice and to put in action its own recovery rapidly.

“The European Union will be heavily represented at the G20 Summit, occupying more than one third of the seats. Now, more than ever, it is essential for Europe to speak with one voice, to act in unison. Europe should stop punching beneath its weight. All together, we can have an impact. All social and economic actors need to gather around a Programme for Europe, a new European deal anchored in the real economy, real jobs, real training and real social action,” addressed Sepi, President of EESC.

Meeting of the leaders from the G20 countries, who represent 85 percent of the world’s output, on April 2 in London, will be a demonstration of top-level unity between world’s leading economic powers. As many of voices of the political representatives stress, at the Summit, countries need to come together to enhance global coordination in order to help restore global economic growth and to lay foundations not just for a sustainable economic recovery, but also for a genuinely new are of international economic partnership, in which all countries have a part to play.

“For the first time ever in an economic crisis, the world is working together - and not against each other. The European Union is leading by example. There is convergence around the EU's common position and we have a unique opportunity to re-shape globalization. Of course the G20 will not end this crisis overnight. But it can, it must, it will, make a difference,” stated Jose Barroso, President of the European Commission.

Officially, three main commitments are proposed, which should be made by the world leaders at the Summit. Firstly, to take action necessary to stabilise financial markets and enable families and businesses to get through the recession. The second commitment is to reform and strengthen the global financial and economic system to restore confidence and trust. And finally, they should try to put the global economy on track for sustainable growth. Although, there are many different approaches on which issues should be discussed during the G20 summit.

“I believe this summit will be judged on five main aspects. First, there needs to be the world-wide coordination of fiscal stimulus. Second, to create lasting demand, we need a confidence stimulus. This requires a very ambitious reform of financial markets. Third, we need a global governance stimulus, to reflect the 21st century world. Fourth, we need a trade stimulus. Fifth, we need a development and climate change stimulus. There can be no recovery without fairness vis-à-vis the developing countries and coherence with our fight against climate change,” defined Barroso.

There have been also transatlantic tensions over the focus of the summit, as the European leaders have repeatedly rebuffed US pressure to plough more money into their ailing economies as part of an international effort to revive withering global demand. Moreover, the nervous atmosphere has strengthened and cumulated after the controversial statements of the outgoing Czech Prime Minister Mirek Topolanek, who described the United States’ ambitious but costly economic stimulus plans as “a way to hell.”

"The United States is not on the right path with its costly stimulus plans and we need to read the history books to avoid the same mistakes,” Topolanek insisted.

Washington is spending trillions of dollars to support its banking system and take the world's biggest economy out of its deepest recession in decades. However, the dispute between Europe and the United States over the focus of the summit has been diminished by the Washington’s announcement on last Thursday for sweeping financial reforms, including a single watchdog for all key financial institutions and payment systems.

“I think in a time of crisis we must be responsible and not forget the most important medium and long term challenges. The problems will not disappear. Climate change has not disappeared because of this crisis, and the needs of the developing world indeed are increasing. I am happy to tell you that EU has defined a common message for this G 20 summit. That is what we did at the latest European Council. It is a message that can and will engage our partners, for the sake of citizens' jobs and prosperity, here in Europe, but also worldwide,” concluded Barroso.