The forthcoming EU summit

On Friday, the EU leaders will meet in Brussels. This will be the first face-to-face meeting since the beginning of the pandemic. The agenda is about money, lots of it. They must decide if they approve the Commission’s recovery proposal, its budget, and the disbursement modalities. It is indeed a delicate agenda

There are two camps. One side wants the new money to flow to each country, with little interference from either the Commission or the Council. In their views, it is up to the national governments to decide on the programmes and projects to be funded, accepting however that those funding decisions must fall within the broad framework proposed by the European Commission. Italy, France, Spain, and Portugal are within this group.

The other side, led by the Prime Minister of the Netherlands, advocates a greater oversight by the European Council. That would mean that country allocations should be endorsed by all, not just by the government concerned. It would give the Council, where the heads of State and government sit or are represented, the authority to say no a country’s allocation plan. They do not see this approach as interference. They think that the volume of money is very substantial, and it should, therefore, be used not only for recovery but also for economic and administrative reform at the national level.

As of today, it is unclear what the outcome of the summit might be. The conflicting positions show that some countries are convinced that others are not doing enough in terms of economic transparency and administrative effectiveness. They see a widening gap between development levels. And they are afraid that the richer part of Europe will be asked to keep contributing to States that are not doing their best in terms of political performance. The opposing side considers such a position as a prejudiced view. In my opinion, both groups of countries have some valid points that must be discussed. Indeed, it is time to discuss the reasons for poor performance and also some of the prevailing national prejudices that are still alive in different parts of the European Union.

Mark Rutte on the EU

"And I’ve said many times before that I believe the EU is stronger when a deal is a deal.  In the EU there can be no haggling over democracy and the rule of law. We must always draw the line when fundamental values come under pressure, as they have in countries like Poland and Hungary.But a deal is also a deal when it comes to the euro and the Stability and Growth Pact. Because here too, bending the rules can erode the entire system, and we cannot have that. To me the whole idea of the EU is a group of independent member states working together to bring each other to a higher level of prosperity, security and stability. Unity is the source of our capacity to act in the outside world."

Churchill Lecture by The Netherlands Prime Minister Mark Rutte, Europa Institut at the University of Zurich

Speech | 13-02-2019

Challenging the welfare state

Willem-Alexander, who has recently been inaugurated as King of the Netherlands, addressed Parliament for the first time. In his speech he announced that the Dutch welfare system is no longer sustainable. And he linked his statement to the globalisation and the ageing population.  He could also have mentioned the serious public account deficit the country is confronted with.

I suspect this statement will be quoted often in the near future.

In the meantime, on the same occasion, a friend of mine, an American lawyer well known in some circles, reminded me that in the US the age group that is growing faster, in proportional terms, is the one concerning the people aged 95 and plus.