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Prime Minister Pahor: EU should take unanimous and concerted action

Today in Brussels, Prime Minister Borut Pahor attended the informal European Council meeting dedicated to addressing the global financial and economic crisis. "The message of today's meeting is that the European Union should take unanimous and concerted action within the single market of the Economic and Monetary Union. 'Solidarity' was the word most often mentioned," emphasised Mr Pahor after the meeting.

 

(Foto: Bobo)

 

Considering the situation on financial markets, the Heads of State agreed that it was necessary to ensure the normal operation of credit markets as a necessary precondition for effective economic recovery. "In light of this, Slovenia supports the unanimous approach of the EU Member States to the implementation of measures in the banking sector, including purchasing or securing the bad assets of banks where this proves necessary. States should retain the possibility of deciding by themselves, depending on the individual situation, whether to use these instruments or not," stressed the Prime Minister. Supervision of financial institutions should also be improved. "Slovenia will also examine the institutions regulating financial markets and adopt the necessary measures."

 

However, the warning regarding fiscal incentives to the economy is of great importance to Slovenia: "Sustainability of public finance is one of fundamental ambitions of Slovenia. A budget deficit today means higher taxes tomorrow. To that end, I am satisfied with the two packages of measures adopted by Slovenia as well as with the budget amendment, which still complies with the Maastricht criteria. Slovenia has been leading a resolute and sufficiently accelerated policy, which is also sound and clever, and not hasty in connection with the budget deficit," pointed out the Prime Minister.

 

(Foto: Thierry Monasse)

 

For the EU economy to recover, the previously adopted EU plan provides an appropriate framework, complemented by the Member States' own measures. These measures should respect the rules of the internal market, competition and state aid, and it is of utmost importance for the Member States to avoid protectionist measures.  "The danger of protectionism is the concern of all countries in Western and Eastern Europe; all the countries are aware of the long-term negative consequences. If the policy is not harmonised, protectionism may appear in the future. However, the message of the today's meeting is that harmonised and uniform action in the EU is under way and that confidence can be enhanced on this basis," emphasised the Prime Minister.

 

Mr Pahor also noted that before the informal European Council meeting today, Slovenia as the only Central and Eastern Europe country, did not attend the so-called mini-summit of the countries of this region, believing there was no need to do so.  "Slovenia is a euro zone Member State and is encountering other structural difficulties than the countries that attended the mini-summit," explained the Prime Minister, adding in this context that Slovenia has been solving its problems in a different way. "If there is no further global deterioration, an economic turnaround can already be expected this year," noted Mr Pahor, adding that every country should be considered individually, since the division between East and West is not good.

 

The European Council will again discuss combating the financial and economic crisis at its regular spring meeting on 19 and 20 March in Brussels. The crisis will also be the topic of the G-20 meeting scheduled for London on 2 April. The new President of the United States of America, Barack Obama, and the EU leaders will discuss the crisis at the EU-USA Summit set for 5 April in Prague.

 

On the margins of the Council meeting,  Prime Minister Pahor also met the Prime Minister of Sweden, Fredrik Reinfeldt, and the Prime Minister of Hungary, Ferenc Gyurcsany, and spoke to the President of the Council of the EU, Czech Prime Minister Mirek Topolánek.