Is this the end of the world as we know it?

It's certainly the end of the eurozone as we know it.

If there was ever a time for apocalyptic titles, well, this is it. Politicians, journalists, market participants, commentators, academics and pretty much everybody under the sun have engaged in an unofficial competition for who is going to come up with the most depressing prediction of what the not-so-distant-future holds for the eurozone and Europe at large.

If these doomsday predictions are anything to go by, our world will come crashing before our eyes very soon. Maybe, but it is not all that bad. This is indeed the end of the eurozone as we know but I believe we should all feel fine.

What is about to end is the perverse system of guarding a monetary union with peer pressure alone. The Stability and Growth Pack was an inadequate tool for governance, based on intergovernmentalism. Supranational institutions like the European Commission and Eurostat were left powerless to enforce discipline (or even question Member States' statistics).

Proposals are already on the table to strengthen the governance of the eurozone and empower the Commission to scrutinise national budgets, warn about the build-up of imbalances and challenge Member States that break the rules. But more needs to be done; not least the creation of a European treasury with the appropriate authority, know-how and firepower to make fiscal and economic policy common for the eurozone as a whole.

The intergovernmental model of governance has taken focus away from the collective good of the Union and put the emphasis on EU Member States' competing national interests. What we need is independent and supranational institutions, taking decisions beyond narrow national interests, with the good of the EU as a whole in mind.

In a similar vein, the idea that monetary union can prosper without fiscal union has run its course.

The emergence of imbalances and the loss of competitiveness are features of all monetary unions, including the US or the UK. To reduce the chance that these imbalances occur, scrutiny of fiscal policies and national budgets must be accompanied by the integration of labour, social and tax policies in an effort to form not just common economic policies but also a truly common European economy.

But when imbalances do emerge a system of transfers must be put in place to afford the embattled part of the union time and space to implement the necessary policies that will allow it to regain competitiveness. Those transfers will be conditional to the applications of the appropriate policies and can only happen in the context of a comprehensive fiscal union, with the rights and responsibilities that implies.

Furthermore, the European Central Bank must be liberated from its purely price stability remit. A strong and stable eurozone requires an central bank that monitors the build-up of imbalances across the economy and the financial services sector and is able -- and willing -- to function as lender of last resort when solvent member states and financial institutions find themselves in liquidity problems due to a systemic shock in the markets.

The creation of a fiscal union and the strengthening of the central bank will allow for the issuance of common bonds without the risk of moral hazard. Member Sates won't need to rely purely on the discipline of markets when they have to abide to the discipline of eurozone institutions. At the same time, the eurozone will not run the risk of constantly falling pray to the un-picking of its weakest link by the markets.

Last, but certainly not least, this Huxleyian Brave New World should have at its core democratically legitimate and accountable institutions. If we are to move closer to fiscal and economic federalism, governed by the independent and supranational institutions mentioned above, EU citizens must be at the heart of the process. Those charged with making decision -- be it the President of the European Commission, the President of the European Council, a European Finance Minister or the Members of the European Parliament -- must be directly accountable to the people.

Direct election for the three former, and a more representative voting system for the latter, will ensure a direct link between the electorate and the elected, and legitimise the process of economic integration needed to safeguard the future of the eurozone. This is not pro-European fantasy: it is a necessary building block in the architecture of the new governance structure of the Eurozone. And for that we need a new, grand, pan-EU Social Contract between EU citizens and their elected representatives.

The sooner we start drafting that contract the quicker we will be able to take EU citizens on board the process of closer European integration, bidding farewell to the world as we know it while greeting a new, brave one.

Petros Fassoulas is the Chairman of the European Movement UK

Petros Fassoulas is the chairman of European Movement UK

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How a dark night for Paris was made easier by British messages of support

The French Ambassador to the UK reflects on the Paris attacks, and how Britain's response helped make the aftermath more bearable.

I was at a dinner with members of London’s French community when news of the 13 November attacks in Paris first reached me. Our initial reaction – one that I think was shared the world over – was of shock. Young people, out on a Friday night, doing normal things that young people do: chatting, laughing, drinking, dancing. Enjoying the pleasures that are their right, in a city that lives and breathes music, conversation and, above all, liberty.

I felt a tragic sense of déjà vu as I followed the events unfolding on television. Less than a year ago, our country was attacked by murderers and fanatics who wanted to destroy the values that we hold dear. And again on 13 November, I watched as France fell victim to another cowardly and barbaric attack on its way of life.


Fraternité, solidarité

The grief that was shared by the French community here in London was made easier to bear by the messages of support that flooded in from around the country – if anything, even more than after the Charlie Hebdo attacks. I received countless phone calls, emails and letters from British friends, dignitaries, members of the public and faith groups, all conveying sympathy and friendship. I was particularly touched by a statement presented to me by representatives of 140 leaders of the Muslim community.

None was more powerful than the football match between England and France at Wembley, just four days after three suicide bombers blew themselves up outside the Stade de France in Paris. Never has the word “friendly” taken on such a literal meaning. It wasn’t about the football that night; it was about coming together and showing that we won’t live in terror. There have been so many stirring renditions of the French national anthem these past weeks – not least that of the French bass Nicolas Courjal following my appearance on The Andrew Marr Show – but the singing of La Marseillaise by the whole stadium, including the Prime Minister and Prince William, really did move me. I think the front cover of the Metro the next morning summed it up best: “England. France. United.”


Fitting tributes

The embassy in London was a focal point for many who wanted to show their support in the wake of the attacks. A sea of flowers and candles quickly formed outside, with a constant stream of people coming to sign the book of condolence that has now been sent to Paris. Once again, the British people showed that we can count on them in difficult times. I led a minute’s silence alongside the Home Secretary, Theresa May, which was observed all around the country in memory of the victims of the attacks.

Her presence was fitting, given the close relationship that our respective home secretaries have built. There are constant exchanges between the French and British security services, for the threat of terrorism is not faced by France alone. The whole of Europe must ensure that stronger security measures are put in place. We wish to preserve Schengen and the border checks are only temporary measures. But the external border needs to be much more secure and European border guards need to be present.


Beyond Calais

I’m glad that, after a tough summer, our message that Calais is only one part of a Europe-wide migrant crisis seems to have got through. The kind of criticism I heard in July, when I was asked time and again by the press why France wasn’t doing more to prevent migrants crossing the tunnel, is now much rarer. Indeed, Franco-British co-operation has been effective in Calais. But the “Jungle” is still there, inhabited partly by people who would qualify for refugee status and who will need to be taken care of. France is already doing a lot in that regard.


Current climate

Migration was on the agenda last week at the London School of Economics, where I opened a conference on its link with climate change, the last in a series of Franco-British events that the embassy has held in the run-up to the UN climate summit in Paris, which starts on 30 November. Life has to go on as normally as possible after the atrocities. Any­thing else would be a victory for the terrorists. The sense of momentum ahead of the summit is strong and hasn’t been diminished by the attacks. If anything, the sense of urgency is greater than ever. This summit is about securing the future of humanity – what could be more important than that?

Nuclear energy is one of the ways we can reduce CO2 emissions. President Xi Jinping of China’s recent visit to the UK resulted in decisive steps being taken towards the building of a new nuclear plant at Hinkley Point by the French company EDF. This project will provide secure, low-carbon energy to UK homes and reinforce the alliance between France and Britain for decades to come.


Old alliances

On Monday I attended a breakfast in Paris between David Cameron and François Hollande. Witnessing this new testimony to the strength of the century-old Entente Cordiale, I could not help but think, bemused, of those commentators who claim that to ensure the success of the British renegotiation, there will have to be a highly visible Franco-
British spat at a forthcoming European council . . . Speaking of friendship in times of crisis, two days before the Paris attacks, I presented 19 British veterans with the Légion d’honneur, France’s highest honour, in recognition of their role in securing France’s liberation during the Second World War. Over 1,000 have received their medals so far and many more will get them in the months to come. I’ve received a number of poignant letters from them as a result. In the midst of the grief and despair, it will be all the more moving to honour these veterans. They are a reminder that courage, determination and, above all, solidarity will triumph.

Sylvie Bermann is the French ambassador to the UK 

This article first appeared in the 26 November 2015 issue of the New Statesman, Terror vs the State