The European Council had asked Van Rompuy to produce this report, which he wrote in close collaboration with the presidents of the European Commission (José Manuel Barroso), the Eurogroup
(Jean-Claude Juncker), and the European Central Bank (Mario Draghi). The involvement of three other important European institutions indicates its broader backing.
The Plan Van Rompuy consists of four ‘building blocks’, proposing a Banking Union, a Budgetary (or Fiscal) Union, a Sustainable Growth Pact, and a system of decision-making within the EMU to ensure more democratic legitimacy and accountability. These four building blocks, according to Van Rompuy, do not constitute a ‘blueprint’ but instead offer ‘a coherent and complete architecture that will have to be put in place over the next decade.’
Van Rompuy’s Plan was discussed by the European Council at its meeting of 28-29 June. According to the official conclusions of this meeting, there was ‘an open exchange of views, where various opinions were expressed’. Van Rompuy was invited to elaborate all four of his building blocks, to present an interim report at the meeting of the Council on 18-19 October, and to submit a final report at the Council meeting on 13-14 December.
The plan is to take heed of the mistakes and miscalculations that have accompanied monetary union so far and carry out a considerable restructuring and reinforcement of this basic edifice of European integration. Clearly the European Council is taking the Plan Van Rompuy very seriously.
At its meeting in June, the European Council addressed the need ‘to put Europe back on the path of smart, sustainable and inclusive growth.’ It decided to launch a new ‘Compact for Growth and Jobs.’ In line with the third building block of the Plan Van Rompuy, the text of the Compact emphasised the importance of ‘sustainable growth’.
The Compact further contained two significant financial items: the decision to reserve €120bn for ‘fast-acting growth measures’ and the intention to increase the lending capacity of the European Investment Bank by €60bn. The Compact did not specify how this €180bn of additional investment is to be channelled into projects for green growth and jobs. Perhaps Van Rompuy’s Interim Plan of October will bring more information on this.
We hope the Interim Plan Van Rompuy will especially support and strengthen a new role for the EIB. Both in Brussels and in the member states these days there is no lack of projects for green growth and jobs, all waiting to be financed and implemented. It is time to decide that selection of these projects will be carried out by a strong organisation with a solid reputation and the highest financial expertise. The same organisation could be given responsibility for the further elaboration of the Compact for Growth and Jobs.
The EIB has the right background, track record and skills for this role. Expanding its mission to take on these additional projects would be an exemplary way of showing that Europe is serious about reinforcing its structures to meet the challenges of today and tomorrow. – Ruud Lubbers (former prime minister of The Netherlands) and Paul van Seters (professor of globalization and sustainable development at Tilburg University)
Post published in: Analysis