How to Break the European Deadlock?
Channel: ALDE ADLE
Date: 04/11/2011

LUNCHEON SPEECH OF GUY VERHOFSTADT
PRESIDENT OF THE ALLIANCE OF LIBERALS AND DEMOCRATS IN THE EUROPEAN PARLIAMENT AT THE EUROPEAN CHAMBER OF COMMERCE IN HONG KONG, NOVEMBER 3, 2011

Story Summary

Guy Verhofstadt, President of the ALDE Group in the European Parliament, speaking today at the European Chamber of Commerce in Honk Kong said:
 
" Details of exactly how to boost the fightpower of the rescue fund were put off until next month. I expressed already publicly my doubts whether the increase of the firepower is enough. How credible is it to assure an insurance of 20% if they now decided on a haircut of 50 %  for Greece? And how much chance to success do these special purpose investment vehicles have?
 
Negotiations between EU officials and the representatives of the banks  on the conditions of the  write-down in Greece's debt, still have to be concluded.
 
Moreover, the outcome of all this remains unclear, especially because of the implosion in Greek politics. It becomes clearer every day that the political leaders in Greece, are not capable of guiding the country out of the crisis, as they are still terribly divided.
 
The organisation of a referendum, as well as the call for early elections by the opposition, are irresponsible. At a time when a house is on fire, one should not wonder and ask around if the fire should be extinguished or which firemen should do the job. They should all take up the firehose and start immediatly- the majority as well as the opposition.
Stop fighting, stop the political games, and form a government of national unity.
 
Nevertheless, it is crystal clear today that fuelled by the recent events in Greece, the so called historic summit of 26th of October, did not go far enough. Certainly not far enough to restore confidence.
 
Yes, this double Summit took important decisions. But I did not see genuine breakthroughs, no big bangs, no full-range bazooka to overcome the crisis in a lasting way. Yes, the Union is moving forward. But we merely still do, as we have been doing over the passed two years. Waiting, hesitating, crumbling. Looking to one another, rather than facing our common challenges. Moving step by step. Often going into action too little or too late. Only taking tough decisions when the financial markets force us to do soFinancial markets and rating agencies have the Member States still in their grip one by one, notch by notch. Pondering what should be done in the German Bundestag, and not in the European Parliament.
 
So this brings me to the essence of my message today:  how do we grasp control over this crisis again? How do we overcome what is clearly now a systemic crisis?
 
Well I think, and I have been saying this for two years, we need exactly the opposite of what we have done the last 24 months.
 
We need as urgent as possible, to establish a federal Union, a real political and economic union besides the monetary union that we have since 2001.
 
Secondly, we need a clear and comprehensive roadmap to realise and implement such a federal Union.
 
And thirdly, we need as fast as possible, some temporary "urgency- measures" that remain valid until the federal Union has become a reality. Urgency measures that will prevent the crisis from worsening.
 
Again, the only way to tackle this crisis with a guarantee of success, is to urgently complet the Union with a federal authority. A federal authority that governs the eurozone, as a real economic and fiscal Union."

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