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President Barroso, Van Rompuy, Prime Minister Leterme, Professor Schwab, ladies and gentlemen good morning My name is Stephen Kinnock, I’m the Director of the Europe and Central Asia Team in the World Economic Forum and I’m honored to welcome you today to the World Economic Forum on Europe I would like to start by thanking the government of Belgium. Unfortunately, Prime Minister Leterme is just being caught in Brussels traffic and will be with us very shortly But I’d like to thank him in his absence for his great cooperation in co-hosting this meeting with us. In spite of the somewhat turbulent times that the Belgium government is being going through, they’ve been unfaltering in their support and we’re profoundly grateful for that. Ladies and gentlemen we meet today at the critical juncture for the future of Europe The gentlemen on this stage and the entire political leadership of EU are facing a range of challenges with arguably more daunting than anything we’ve seen since the creation of the European Community The World Economic Forum is therefore proud to have gathered you, Europe’s leaders to confront these challenges together Now, more than ever we must recall the aspirations to drive the creation of the European project and it’s in that spirit of punish upon dialogue that the World Economic Forum welcomes you Brussels today And that gives me great pleasure to wish you every success for the coming days and to give the floor to Professor Schwab who will chair this opening plenary session Thank you Thank you Thank you very much Stephen It’s quite to historical moment we are here co-shaping history in some way and I have to say someone who has been committed to see European ideas since he is used. I feel very proud of what has been achieved last night I think it’s a great act of European solidarity And I would like express our deep appreciation on behalf of the European and to globe economy, to all those who have negotiated so hot over the last days and hours And I’m particularly pleased that this morning we have the two personalities and afterwards Prime Minister Leterme with us who really represent Europe as the top level and its best way So, it gives me great pleasure to welcome Jose Manuel Barroso, the president of the European Commission and also Herman Van Rompuy, the president of European Council of the European Union We will discuss doing the next hour of course the outcome of the negotiations of this night but we will also look at the more longer term issues and I’m sure we will have a very lively discussion I first — with beyond that — good morning, Prime Minister. I was just saying it’s very encouraging to see how democratic Belgium it is when the prime minister can still be striking in traffic But let’s first hear from President Barroso what or how he able to weigh the outcome of the negotiations of the crisis package and how he feels what it means for Europe and for several that launched? Thank you. Thank you Professor Schwab Good morning to all of you It’s a pleasure to be here immediately after such a historic decision was taken In fact, after Friday’s Euro area summit, this morning in less than 48 hours, the European Union took a very historic decision Based on a mandate we have received from the Euro area summit, the commission yesterday made a proposal We had an extraordinary meeting in the afternoon and the EcoFin ministers of Finance and Economic ministers of the European Union have agreed an important package for the stability of Europe We have stated that we will do whatever is necessary to defend the stability of Euro

and we have done just that. This morning’s the early it was at 2:15 a.m this morning’s deal is based on the proposal commission made during its extraordinary session Sunday morning, it creates a mechanism to assist Euro area members with loans guaranteed by the European budget In addition, it provides assistance guaranteed by participating member states The total amount of approximately 500 billion euros is unprecedented In its scale this should also be seen in conjunction with measures announced by DCB and also with possible participation of the IMF There is as you know the commitment of the IMF to come to participation of around half of what the member states contribute So, we can say that in the space of 48 hours the European Union has completed an agreement that enables us to respond in a coordinated, fast, effective manner to difficulties in any Euro area member state This morning’s agreement will ensure that any attempt to weaken the stability of Europe will fail. It shows the determination of the old of European Union who stand behind any of its member states when they are seriously threatened with severe difficulties caused by exceptional circumstances beyond their control But this deal is not only about assistance It was also about further efforts of consolidation. I’ve outcome to clear commitments made by some member states to take additional measures of physical consolidation soon A combination of budgetary efforts by countries and the pressure and assistance by the others is what I’ve been calling a consolidation pact for the Euro area You know that the commission has long been making the gates for enforce the economic governance We have stated from many years now that at the end we cannot have a monetary union without economic union This is defined we need stronger coordination, economic policy coordination and until now the response of the member states has been in this direction understanding that the solution for this problem is a more coordinated Europe, more clearance economic policy coordination and that is why the commission will present this Wednesday some proposals for a reinforced economic governance and also for a reinforced compliance with stability and growth pact We will propose to broaden surveillance of microeconomic imbalances and reinforce our competitiveness and we will also put on the table some ideas for a permanent crisis management mechanism This mechanism that was adapted this morning was for this very exceptional circumstances we’re facing was based on Article 122, it’s a specific article of our treaties. Moreover, we will intensify our ongoing work on a more robust, more transparent regulation of financial markets We will push the agenda, this agenda in the G20 as we know the European Union was also at the beginning of this pro sets summit level of G20 and as you know that I’m sure our President van Rompuy will speak about this European Union also had asked President Van Rompuy to share a taskforce to get some of these experts So, for me the lesson from this crisis is clear We need a stronger union in economic policy, stronger compliance by member states with policies and rules agreed at union level. This is now the way we will take and to take every efforts to take it further, I think the lesson from this crisis is if you want the monetary union you should promote also an economic union. That does not mean every member state make exact the same at the same time but it certainly means reinforced economic governance and respect of all the obligations the member states have in the stability and growth pact Thank you President Barroso You mentioned in a very encouraging ways that the European Union will teach us lessons and if we look back

to history, crisis always have been the catalyst for improvements President Van Rompuy you are chairing this taskforce, could you tell us a little bit more about it and share with us your views on surprising crisis and how it is mastered? Thank you professor. I think the decisions of yesterday evening and even of tomorrow are indeed as President Barroso said a historic decision The European Union can act We overcame a financial crisis We will overcome a crisis inside the eurozone. The European Union can act if needed. That’s the most important fact of these days Second, we had a very important meeting of the eurozone Friday evening and there’s one sentence, which is crucial in our decision on Friday All the institutions of the euro area, the council, the commission, the European Central Bank as well as all euro area member states agreed to use the full range of means available to ensure the stability of the euro area I think each of them took their responsibilities Yesterday, the EconFin council on far reaching proposals of the commission very courageous far reaching and the European Central Bank will announce his initiatives I think in a few hours So, all the institutions of the euro area are collaborating in the same aim to save the stability of the eurozone, the second biggest currency in the world And in the last months we worked on two parts, one of solidarity and one of responsibility Responsibility with the measures taken in Greece for instance, also a far reaching and very courageous package of measures to change not only the way into which the budget is managed increased but change the culture and even society in Greece and responsibility of course on the side of the European Union stronger economic governance. I will just say a few words on this later on And then all the sides was on the other side was solidarity, solidarity with Greece, a conditional package of 110 billion euros and now those two new initiatives way to stabilization package of – stabilization fund managed by the commission and an inter-governmental fund both of them for huge amount of 500 billion euros, which half of them where we added by the European the international monetary fund So, solidarity and responsibility, we had to do this Now the other question of Professor Schwab about the taskforce The taskforce and also that we decided in our meeting of Friday evening, first broaden and sanction economic events and policy coordination in euro area including by paying close attention to that levels and competitiveness developments Second, reinforce the rules and procedures for surveillance of euro area member states including to strengthening of the stability and growth pact and more effective sanctions And third, create a robust framework for crisis main event respecting the principle of member states on budgetary responsibility These are the three — the three targets, the three objectives we will start our work on May 21st and end in October for the European Council of October We will accelerate our work We have a lot of ideas The commission will provide some new ideas this week on Wednesday I myself have also concrete proposals

to make and I think that’s also others will do it. So, we would put all this together and have a real and I hope a radical package ready for the European Council of October Crisis is our challenges We proved that we were ready to be very courageous these last days and we have to be very courageous also in the proposals I will make on behalf of the taskforce in a few of a stronger economic not only governance but even government in some way so that the eurozone stabilized for very, very long period The eurozone was a major achievement, a major achievement of the European Union I think the biggest achievement since the launching of the European community in ’58 So, we have a huge responsibility in defending not also in the eurozone but deepening the eurozone We can’t have a monetary union at the end without some form of economic of political union and that is our big task for the coming weeks and the coming months After having criticized for a two teammate approach to handling the crisis, I see now a real commitment for fast decisive and comprehensive action. Now, Prime Minister Leterme, you as a Prime Minister of one of the member countries, how do you react to it? How do you see it? Well, first of all I’m glad that the decision was made finally as to the evening and tonight. So, I think like was mentioned before crisis is our challenges are the most important factors that there is a very impressive decision and I just heard that at the news that the reaction of the market is going the right way This is very important I remember when saving the private banks in Belgium that’s the Monday morning when markets were opening the reaction was much more timid So, I think it’s a very important positive effect of what has been decided But like the president of the commission and the president of the council already stated I think we really have to take also to seize the momentum to draw the right lessons of what happens Yes, we acted quickly in… speech during the last two or three days, no I think we were too much there was too much hesitation the last three to four months and I think we lost some possibilities and opportunities to act — to react on what was happening and I think in the Greek case due to all kinds of reasons, most of the reasons have related to the case itself I think we were a little bit — we could have been — we could have had more speech in their reactions So, the lessons to draw I would say well, it was already stated we have to have a real economic union instead of a monetary union only There is a monetary union. We have a common euro and like Herman said is the most important achievements since well, at least since the single market was launched is the most important achievement is something all of citizens of the eurozone shares so we have to defend but I don’t think we were always so consequence to know that when you have a single currency you have to have a kind of economic policy To give one example since the launch of euro, the imbalances in competitiveness between some parts of the eurozone have increased. And so the cohesion policy should be announced without doubts but we have to acknowledge and to see today that there are still very important imbalances in competitiveness. So, economic governance concerning the public finance but also concerning the competitiveness functioning of the labor markets, the cost of labor, the productivity, I think accounts have a single currency and a single euro and still have it within the decades coming when you still have these kinds of differences in competitiveness So, we should work more on that Secondly, I think that — it has already been said during the last years but we have to act on this We really need industrial project, industrial vision, technological common vision or maybe some emblematic projects. In fact, we have them like… for instance is a tremendous success. We have high speed trains but I think we need more industrial projects, common projects that can let’s say have some

where people can believe and our economic operators can believe in Thirdly, I think we should be more present on the global level In most of the global issues we are discussing now — we are showing the right example but it’s — I think as a matter of fact that we still have a lack of leverage for this moment I just have to repel the case of Copenhagen where we were gathering with the 27 countries and having a very offensive and good standpoint and position but all their powers of the global market and global political system were deciding apart from as another meeting room So, this should not be repeated But to sum up I think it is a very good decision that was taken. It was taken in just at the right moment I think you lost some time. We have to draw lessons of what’s happening what has been happening. We lost some time during the last four to five months and the most important lesson must be that your accounts have a single currency when you don’t have of course common defense mechanism but moreover underlying a common economic policy reducing the public debts, reducing the imbalances, also the imbalances in competitiveness and Belgium is certainly prepared to give more possibility, more room of maneuver for the European institutions to act and to act representing our country I mean the commission has the possibility to make proposals and we have to decide on it to put in place the budgetary and other measures means to accomplish the goals Thank you Prime Minister President Barroso, the economic policy is very much pleased now on the Agenda 2020 and we need in Europe, we need growth, we need innovation, we need jobs. So, actually the Agenda 2020 cannot be disassociated forms of crisis management at this particular moment Could you tell us a little bit more about those longer term aspects and particularly Europe and so also those debts one day have to be paid back? So, how do you see the longer term the immediate longer term picture? Yes, precisely we have defended when we made a proposal for what we call now year 2020 strategy, so strategy for the economic growth, sustainable growth in Europe for the next years We have underlined what we call the holistic approach that’s why we cannot separate that strategy from other aspects of the European Union namely stability and growth pact So, microeconomic stability, public finances stability, the global agenda. We cannot today look at Europe or any other part of the world in separation from the rest of the world and also some of our key of our European process namely the deepening of the single market So, it is about holistic approaches We have suggested Professor Schwab it’s not only about the programs or the concrete projects we have now in the year 2020 strategy But what is the core of year 2020? The core is growth We need to restore growth The crisis, the global financial crisis has affected in Europe and in other parts of the world the growth potential We need more growths in Europe but not any kind of growth We are insisting on a more sustainable, inclusive, smart growths That’s why we are trying to insist on these new sources of growth It starts with good public finances Let’s put it clearly some of all member states have been living above their means and this is not sustainable So when we speak about sustainability, we should also think about sustainability of public finances. That’s why things are linked. So, even if from legal point of view we keep the stability and growth pact separated from the year 2020 agenda, those things are in fact linked and what we are asking these member states to look at these… in a coordinated manner Addressing the imbalances, we have seen in the euro area some imbalances growing and at the same time making investments right for the future, investment for the transition to a lower carbon economy, make an act of investment at the European level in some of the interconnections that will make us — make the most of the internal market days and debt potential is still in the internal market The internal market this today I’m going to receive a report I’ve commissioned Mario Monte about some ideas how to deepen the internal market In fact, when you look at the internal

market in Europe we have it in terms of goods but there is still there are still many missing links in terms of services in other areas That’s why we are also looking at energy, some of the most important interconnections we have a real internal market for energy and making investments of the future You know the investments in knowledge, the investments in everything that can make Europe competitive relying on what are our advantages, the human resources we have in Europe In fact, we cannot for the growths of Europe lower our standards In Europe citizens want to keep what we usually called the European social model or a social market economy That’s the name it is we have put in the Lisbon treaty social market economy So, the solution is not to lower our standards The solution is be more competitive and to invest in new sources of growths This is what the European 2020 strategy proposes of course based on reinforced economic policy coordination and seek, which each member state can have a contribution to this agenda at the same time what we can do in respect of the principle of solidarity What we can with European level? Some of these investments have to be done at European level with community instruments Others rely on a decisive committed determined action by our member states President Van Rompuy, all what we are doing now on the European level requires European solidarity and we have seen just last week and actually yesterday how some of your Europe’s main member, lots of the member countries goes with internal difficulties to choose a government or to have a government in place, which really can undertake act How do you see it from a political level? I mean is Europe as a European country is capable to live up to also its expectations and to all the internal pressures and I would add here I have heard this morning Christine Lagarde who said some of the aspects will have to be ratified if I’m not mistaken by European parliament So, what does it mean for the actionability of all those decisions? Of course it is only the result that counts We are judged not by our intentions, not by the way we took a decision but by the outcome. The result is the most important thing. And for instance in the case of Greece, we acted in solidarity and governments who faced internal problems regarding this decision of helping Greece took their responsibility They took their responsibility even with the risk of electoral disadvantages I am very cautious in what I’m saying They took their responsibility and it is the outcome, which is the most important thing Second, every country — I was prime minister for 11 months but every government, every prime minister has to act in a climate of rising population So, we need more than ever, more than ever political courage and a lot of countries are ready to take and I reiterate their responsibilities This is the moment for political courage in different circumstances, in most of our countries but we are ready and the most of them are ready to take those responsibilities. Solidarity inside the eurozone but also solidarity inside the European Union but the decisions of the EcoFin council we are not decision in the eurozone That were decisions taken by the 27 because all our economists are linked not only on a global way but also in a European way. When there is a crisis in the eurozone even for the 11 members who are not member of the eurozone it has a lot of consequences So we showed also that we have common interests, common values and that there is solidarity. I repeat, in circumstances in each of our countries, which are more difficult, more difficult than ten years ago or 20 years ago

I think the eurozone had some positive worth on all of these The eurozone has fundamentals, which are sound compared to other countries. Our budget deficit is almost half of what is going on in other important countries in the world’s economy Second, we have a balance of payments almost imbalance So, when you have a budge deficit compare to others who is half of their deficit and when you have current benefits of payments in balance on the current account you have a strong argument, a strong argument for having a strong euro Our problem is that inside the eurozone there are huge divergences in economic development And we have to tackle these divergences having more convergence in economic policy and economic development and that’s why we have to make huge efforts the coming years to have more economic governments to tackle those divergences When I took office, the 1st of January, my main message was incomplete agreement with the commission But my main message was we need to double the economic growth potential, which we now have. If we do nothing we have a structurally economic growth of one percent. With one percent growth we can’t finance our social model anymore With one percent growth, structural growth we can’t play a role in the world, in world economy We created the G20, it was the European Union who created G20 but in order to play an important role in the G20, we need more economic strengths and more economic growths So, when I took office it was in the perspective of the famous word it’s the economy stupid but I prefer the word of the account of… 200 years ago when he said to pull the industry, to pull everything for the economy, in the industry that’s 200 years ago but to pull the industry, to pull economy, to pull That’s why I started this mandate with that team and we hope that in the two years coming period of my mandate we can go further, we can go further in economic governance to tackle those divergences in the eurozone so that we have even stronger euro be in two years than we have today It’s an important motto, which you just said but Prime Minister when we want to stimulate growths and you have that problem and I know Belgium in the past had especially experienced in dealing with high debt problems What is your recommendation? I mean in Europe we will have an average that problem of close to 80 percent at the end of 2010 How can we combine the step… the need to pay back one day? So, is that the stimulation program we see EU 2020? Well, first of all maybe two elements I would like to add to the public debt debate. First of all, the yenzone in Japan has a public debt of almost 200 GDP points and the public deficit in the United States is almost double as the Belgium one and still there is confidence in the dollarzone so everything is relative I think we have to be very careful especially for a member state like Belgium although now we are a little bit — well, let me put it the other way, we are wondering where the European institutions and where we all work when the situation of Greece during the last years and maybe the last decade worsens because what we have seen now is — well, they say it’s a lack of statistics and so on but anyway the fact is that during the last maybe 10, 15 years, the situation, budgetary situation concerning deficits since warning Greece went the wrong direction and there was no reaction from the European institution But to come back to your question for a country like Belgium,

we have been choosing for a mixed on the one side keeping into place the policy of having some public finances in the application of the stability program On the other hand, giving stimulus to the market and to the consumer and investors confidence and we stick very well I think to the treaty program of treaty criteria, which we put forward on a very… way by the European commission, the stimulus package have to be timed retargeted and temporarily I think we did that and that gives us now the situation where Belgium seems to be reacting in a better way than the most other member states to the economic crisis The purchase in power has been stabilized The increase of unemployment in Belgium is only half of what was the increase in the European Union and also concerning the growth where our achievement is just above the European average So, I think we have to continue this way and given the fact that another countries the public deficit is much more higher than in Belgium The historic situation we have since almost 30 years of a competitively higher public debt while the situation is improving and we will — if this continues during two or three years we will be in the bench with the other countries So to sum up I think we have to continue the policy we have now, a prudent mix of stimulus and on the other side keeping in place this budgetary policy to have a sound budget and to stick to the stability program. I would add a single word, the big challenge I think for society like Belgium is whether the social partners, the economic and social partners that negotiate wages and so that negotiate to salary cost or prepare to let’s say to put some — to make some efforts, to pay some efforts to have lower wages to put the competitiveness of our industry Also from that point of view the number one place in the targets they are pursuing Thank you Prime Minister. I will ask the co-chairs to raise some issues or to make some comments Any co-chairs? Okay Unprepared but waited. The Prime Minister raised and I think President Van Rompuy raised the issue of populism And one thing that strikes me regrettably is the unwillingness of governments and the administrations to deal with the fundamental issue I mean I somewhat relieved this morning to read the details of the proposed package, the trillion dollar package and the steps in the markets are obviously extremely relieved this morning in a bouncing back recouping much of what they lost on Friday But it strikes me that there is still not this fundamental determination to get ahead out of the curve in dealing with deficit reduction I mean I was in Washington last week of the business council and the thing that struck me most was the gridlock that you see in Washington and the unwillingness of the administration, the Obama administration to deal with the fundamental issues of deficit reduction until we get the sort of crisis that we see in Greece. And I just really wondered some observations in each of the three participants as to why is it I mean I supposed the answer is self-evident Nobody is willing to do that because politicians are in the business of being elected not necessarily doing the best thing in terms of the long term strategic economic interest. But why is it that we cannot get ahead of the curve on this? President Barroso? I think this is a very important point The Greek crisis and not only the Greek crisis as shown that we should not forget about some fundamental imbalances and should address them and rightly you point that the problem of deficits and the problem of debt is not an inclusive, European exclusive or European partiality It’s a very or let’s say wide problem That is one of the reasons why we for instance favor discussion in the G20 of those imbalances Just last week I was in China speaking with President Hu and Prime Wen and suggesting this to all the Chinese partners They should not see that as a pressure But we have to look at those fundamental imbalances of the global economy namely

the problems of debt at global level and of course the relation with trade and the relation also with some monetary imbalances, having said that member states at the European level should address this issue as a matter of priority It’s true that because of financial crisis there was the need for some kind of stimulus to the economy to avoid deep recession but we have already stated that we should not prepare what we usually call the exit strategy And the Greek and not only the Greek problem remind — it was a very powerful reminder, if we cannot forget about the needs for let’s say a fiscal rigor in macroeconomic stability That’s why I think government should now take advantage of this situation to address the real problems of competitiveness The reality is that namely in the euro area because of Euro there was what I call illusion of prosperity. Since there was no longer the evaluation possibility, some countries were indeed living above their means and now the reality is back it was — there was an illusion of that prosperity but now the reality is back and so this is the time not only to reduce the deficits, not only to reduce the debt but also the time to make some structure reform that sometimes have been postponed in terms of labor markets, in terms of relation of the public sector with the rest of the economy. And indeed there is a political challenge here Do we have the political courage to do it or not? Because sometimes these are not very popular programs but I believe that’s the only way to do it and at least from the European institutions that is the message that has been conveyed from the commission, from the European Central Bank and from the European institutions in general and I hope that this message is now really understood and first of all that the lessons are drawn from this crisis President Van Rompuy, would you like to add and Prime Minister? Yeah, yes. I don’t completely agree with the statements Remember that not longer than a year ago everyone was asking for fiscal stimulus deficit spending Neo-Keynesian policies and so on The deficit was even good. And we are now a few months later I said oh that you don’t capable. Most governors aren’t capable to tackle budget deficits So, in one year the critic was you do not enough or not take enough initiatives to tackle the economic crisis and you have a unique more fiscal stimulus and now it is you are not courageous enough and you have to decrease the budget deficit. I think the European Union took initiatives Most of the member countries are in what we call a stability program so that year after year the deficits are lesser and lesser The most important thing is the direction Not so much the level but the direction going again not only to a deficit of three percent and we have to go in each of our countries to a deficit of three percent in 2012, 13 or 14 but going even to balance budget because we face also the cost of the aging of the population. So, we are all of us in some kind of exit strategy and the stability plans of each country are proven that we are in that kind of exit strategy We can’t do. We can do it I was myself Minister of the Budget in the ‘90s. When I started we had the budget deficit of 7.5. Six years later we had a balanced budget We haven’t changed society We took measures, a lot of measures, someone unpopular although others going more in the direction of more efficiency and productivity of the public sector We privatized a lot. We structured a lot So, we don’t revolution. We managed to have a balanced budget and we can do this again in each of our countries. We haven’t to wait of course but we can do it again in a gradual way step by step I’m convinced the democracies even in a climate of popular can do it That’s my main message Second we have not only budgetary imbalances We have also imbalances in the balance of payments inside the eurozone and outside the eurozone

There is one lesson to be drawn inside the eurozone from this crisis We had to close look not close enough but we had to close look to budgetary developments But the underlying structure problem, economic problem that we neglect it to tackle this problem When some countries have balance of payments deficits of 10 percent, 10 percent or even 14 percent and we do nothing or we haven’t done nothing or not enough then really we missed an opportunity. And we haven’t to look, at a further look to the underlying economic conditions in which a lot of countries are working and that’s the main aim of economic governments to tackle that kind of problems of competitiveness because competitiveness lay behind the deficits of balance of payments for those We have to work now on budgetary reforms and economic reforms at the same time it’s a huge again agenda for most of our countries but we can do it. I’m convinced that we can do it. We did it in the past. We shall do it in the future Prime Minister Leterme? I fully agree with that last point So, yes we can also in Europe but the crisis being one of the demand it was very clear that we have to have put in place stimulus packages and once again I would say that we — for instance, recovering from Belgium that we really stick to the TTT, the time, the temporary and targeted criteria that were put forward by the European commission The other side of the meddle is that in a country like Belgium for instance where most of the people still on their jobs, still have their employment, most of the citizens didn’t experience the crisis at all in their purchasing power And so this gave us the opportunity to have a consumer market We are still functioning quite the right way and have maybe an economic growth figure, which is a little bit above based on this consumer, confidence a little bit above the European average The whole of the question is now if we will be able to strengthen like Mr. Van Rompuy says the competitiveness and then of course the debate on the salaries and wages is very important item besides the structural economic policy where the European Union I think should be more active and given more room of maneuver starting from the member states Let’s take one last question Professor Albashta [phonetic]? Yeah. Who? Thank you. Gentlemen, you have a plight, a transformational shock, potentially transformational shock overnight to the European Union. The question of course arises what will the test show, this morning’s test from the market suggest that you are applaud. You have done well You have received applause There is, however, not a test to come that is in the eurozone parliaments and maybe in the European Union parliaments there is going to be the needs to be a debate and understand that doesn’t need to be an approval but there needs to be a debate about these measures, about euro package and about your short and long term recipes What is the — the upside potential is clear that will lead to what you have painted what is the downside risk? What if there is no unanimity? What if the populism that you talked about before does creep up? Who would like to Prime Minister? Well until now there was really no problem in Belgium, Belgium being a very European — well, a very positive attitude towards European integration We passed a bill about the bilateral loan to Greece some week ago and as far as I’m informed the package that was decided upon last night will not need a parliamentary ratification Of course we will have to debate but I can say that’s almost a little bit more than one month before parliamentary elections in this country This is not a matter of debate today People I think have still have very positive attitude towards European Union, the euro for a country that is one frontier I must say which all other countries are also close from Brussels and from Belgium We only have 30,000 square kilometers So, for the people it’s a very positive element to be able to use the euro

and I think they’re all prepared to take to see the politicians take their responsibilities. I think until now but maybe the president of the European Union as a citizen of Belgium will say something different I don’t think it’s an item of public debate today President Rompuy? In Belgium it is not an issue but Belgium is one of the 16th member states of the eurozone and one of the 27 of the European Union but again the most important thing is the result. Almost all national parliaments voted for the financial support for Greece even if in some countries there was quite a lot of discussion about all these and even resistance in public opinion but they took their responsibility, they showed political courage and they voted and that is the most important thing And the climate is not the most positive climate in most of the countries for solidarity in general, in general We live in a period of rising individualism but again the outcome is the most important and I’m quite confident that citizen are fully aware of the importance of the stability of their money the euro and at the end they will agree what we took as measures in each of the member states and also the measures of financial support because it is in their own interest to convince them that it is in their own interest That is an argument, which can be the most important argument in a climate of rising populism but at the end the result will be okay. And I’m quite convinced to that this is a moment of courage, this is a moment of responsibility and we will succeed President Barroso? Since I’m here in this round table with the Prime Minister of Belgium and the President of the European Council, a very distinguished Belgium citizen let me tell you that I want to pay tribute to Belgium for the constant support of Belgium to the European integration and the way Belgium has always supported the European institutions But your question if I’m correct it was not just about Belgium, it was more in general and for me the answer is leadership Just one word leadership We need strong leadership People are wise. Citizens are much more wise than sometimes politicians According to latest polls for instance, in Greece, the majority of the Greek citizens, support austerity measures We should not be misled by the images of television of some of course protest The majority of the Greek people support austerity measures. But for this we need leadership, we need courage of the political leaders to show that we are indeed in a dramatic moment and for Europe, for our societies is indeed a question of — I mean sustaining or not the kind of life we believe in So, I believe that in democracy it is possible to make the case for some of those reforms but for this we need leadership. Leadership of course at European level but also leadership at national level and if we achieve this I think it is possible to encounter some trends that exist here and there of populism sometimes narrow nationalism, sometimes even worse than that because those trends exist at this moment in Europe as they exist elsewhere, the protectionism as well, the idea of buy what you produce only in your country, the idea of closing. This threat is there but with determined leadership I think we can win this battle at least if we don’t trust in the majority of the citizens If you don’t believe in democracy we should change all business Speaking about Belgium let me just say how honored we are by the presence… Prince Philip among us. We are coming to an end and I’m very pleased that our discussion took place showing the whole complexity of the issue and not just let’s say, dealing with the aftermath of a very dramatic night If in order to finish this session, if we had to — if you had to give a simple message to the number of the European citizen who may listen to us today with let’s say explaining to him what his position will be inside the European Union

in the future. What would you say to him? President Barroso? I would say if we want to keep our European model of society with relatively eye levels of social commission, social protection, environmental protection, we have to understand one thing, we need more people to work longer and to work more. It’s only with work There are no miracles. Work more and work better of course. So we are at the decisive moment for the survival of our European social model and only if you are ready to make those efforts we’ll be able to sustain it Prime Minister what would be your message? I would say that European Union has shown and eurozone has shown leadership during the last days another fact of living longer and there’s a consequence working longer and be more people at work that is worthwhile that these efforts are all worthwhile because there are leaders of the eurozone that defends the euro and then defend the welfare of the people Thank you. I would add to working longer working more I would add working in a more entrepreneurial way also Yeah. That’s the right sense Yeah If you close the session President Rompuy? Close the session We see your message My message is that we have to focus on the longer term. The longer term to keep our European way of life feasible and if we want to keep our social model on which we are so proud, which can be an example for the world we have to take a lot of message in the shorter term, message which are not always as popular as we should wish but necessary measures and necessary measures as President Barroso said more in the sense of common sense because we can’t afford such a social model without sufficient economic growth that need some sacrifices but is worthwhile on the longer term and I think if we keep focused on the longer term I think we have to support of our citizens On behalf of all of us I want to say thank you for your presence this morning a very important morning and I think very important statements. Thank you To convince them that it is in their own interest. That is an argument, which can be the most important argument in a climate of rising populism but at the end the result will be okay And I’m quite convinced to that this is a moment of courage, this is a moment of responsibility and we will succeed President Barroso? Since I’m here in this round table with the Prime Minister of Belgium and the President of the European Council, a very distinguished Belgium citizen let me tell you that I want to pay tribute to Belgium for the constant support of Belgium to the European integration and the way Belgium has always supported the European institutions. But your question if I’m correct it was not just about Belgium, it was more in general and for me the answer is leadership Just one word leadership We need strong leadership People are wise. Citizens are much more wise than sometimes politicians According to latest polls for instance, in Greece, the majority of the Greek citizens, support austerity measures. We should not be misled by the images of television of some of course protest. The majority of the Greek people support austerity measures But for this we need leadership, we need courage of the political leaders to show that we are indeed in a dramatic moment and for Europe, for our societies is indeed a question of — I mean sustaining or not the kind of life we believe in So, I believe that in democracy it is possible to make the case for some of those reforms but for this we need leadership Leadership of course at European level but also leadership at national level and if we achieve this I think it is possible to encounter some trends that exist here and there of populism sometimes narrow nationalism, sometimes even worse than that because those trends exist at this moment in Europe as they exist elsewhere, the protectionism as well, the idea of buy what you produce only in your country, the idea of closing This threat is there but with determined leadership I think we can win this battle

at least if we don’t trust in the majority of the citizens. If you don’t believe in democracy we should change all business Speaking about Belgium let me just say how honored we are by the presence… Prince Philip among us. We are coming to an end and I’m very pleased that our discussion took place showing the whole complexity of the issue and not just let’s say, dealing with the aftermath of a very dramatic night If in order to finish this session, if we had to — if you had to give a simple message to the number of the European citizen who may listen to us today with let’s say explaining to him what his position will be inside the European Union in the future. What would you say to him? President Barroso? I would say if we want to keep our European model of society with relatively eye levels of social commission, social protection, environmental protection, we have to understand one thing, we need more people to work longer and to work more It’s only with work. There are no miracles Work more and work better of course So we are at the decisive moment for the survival of our European social model and only if you are ready to make those efforts we’ll be able to sustain it Prime Minister what would be your message? I would say that European Union has shown and eurozone has shown leadership during the last days another fact of living longer and there’s a consequence working longer and be more people at work that is worthwhile that these efforts are all worthwhile because there are leaders of the eurozone that defends the euro and then defend the welfare of the people Thank you. I would add to working longer working more I would add working in a more entrepreneurial way also Yeah. That’s the right sense Yeah. If you close the session President Rompuy? Close the session We see your message My message is that we have to focus on the longer term. The longer term to keep our European way of life feasible and if we want to keep our social model on which we are so proud, which can be an example for the world we have to take a lot of message in the shorter term, message which are not always as popular as we should wish but necessary measures and necessary measures as President Barroso said more in the sense of common sense because we can’t afford such a social model without sufficient economic growth that need some sacrifices but is worthwhile on the longer term and I think if we keep focused on the longer term I think we have to support of our citizens On behalf of all of us I want to say thank you for your presence this morning a very important morning and I think very important statements. Thank you

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