EU Commission Barroso: “Europe expects a lot from Barack Obama.” 06/11 21:38 CET

Jose Manuel Barroso is confident Europe will be able to meet the challenges of the current financial crisis. After the recent election of Barack Obama and on the eve of a special European summit the President of the European Commission has been replying to questions from euronews. How does Brussels now see the evolution of Transatlantic relations? What kind of agreement can we expect from the Washington summit later this month? These answers in an exclusive interview with Jose Manuel Barroso.

euronews:“Mr. President, welcome to euronews, and thanks for this interview. Is Barack Obama better than other US Presidents?”

Barroso: “In Europe people are expecting a lot from this American President. For several reasons I believe the conditions are right for us to work together for the advantage of everyone. So on the financial crisis, on the global agenda for prosperity, for trade, UN objectives for the millennium, for the development of international aid, for the promotion of peace, human rights, the fight against climate change….As a candidate for election President Obama put forward some very concrete proposals. I hope we will are going to have some fruitful work together ..good co-operation with the new American administration.”

euronews: “ But when you speak of say protectionism in the economy, is this just speculation, or a risk we might face with Obama ?”

Barroso: “Can I tell you something? Certain leaders in the developing world, most of them on the left, have told me privately that they would have preferred a Republican candidate to win. That’s because they fear the protectionist policies of a Democratic President and Democratic Congress. I hope that President Obama will not yield to this protectionist temptation. I believe that would be bad for us all, in particular for Europe. We are the largest exporter in the world. Sure, it is in the interest of all us to defend our interests, but from the perspective of keeping inter-dependence open for us. Globalisation is about openness and interdependence.

It is not simply that we are being open with the rest of the world and don’t accept inter-dependence as there was a slight tendency to do in the early days of the Bush administration. You can’t say we are for inter-dependence, want multi-lateralism and then return to protectionism.”

euronews: “Precisely, the G20 summit will be naturally a little a test of that, also a test of transatlantic relations after the arrival of Obama. Do you think Obama be open to greater regulation on international finance in this crisis?

Barroso: “I think, I think in theory, ideologically, the new US administration on this subject, will be closer to the European position. We are for open markets and markets with rules. I said that a few days ago at Camp David. In the same way that open companies need rules, in particular the rule of law, the markets also need rules. And the document which we are preparing for this conference, the European document, is not so different from the American proposal. So the Americans have understood things cannot continue like before in Wall Street.

euronews: “Do you think Europe will be able to seize the moment? Because you can see splits in policy between European states. Are they all able to sit down at the G20 summit in Washington with a coherent strategy and a concrete position?

Barroso:” I hope we will all arrive with a clear and coherent policy. I think we are very close to achieving that. Sometimes the opposition we have in Europe is not so much those who want less or more intervention, it is a question of being pragmatic. To give you an example: The United Kingdom, which is not naturally in favour of greater regulation and intervention in the markets was, and can I remind you The United Kingdom, was one of the first to nationalise a bank. That was Northern Rock. So when the need is there, sure, you will see intervention in the markets. And so I believe now we have the right political conditions to put forward the European agenda and that doesn’t amount to interventionism. We are not for interventionism, we are for a good performance of the markets, we are for a social market economy.

euronews: “ The euro, the single currency, would it need economic control like proposals for others?

Barroso: “We must have a more integrated economic policy. It would be very difficult to explain to European citizens that when there is intervention on the financial markets, when there’s been action to support banks that we’ve been able to arrive at a joint position despite national differences. But then when it comes to the real economy that affects peoples everyday lives then we can’t come to a joint position. They’d be right ask why? This is the reason for which I think, yes, we must make progress for a grand co-ordination of economic policies at the European level.

euronews: “But when you speak about coordination, you could say there is already in any event, a eurogroup, with a president and that is enough…

Barroso: “Listen, to the words “economic government”. There is a certain rhetoric, certain semantics here. I don’t want to get into that debate. What I can say to you, is that I am for, the European Commission is for a reinforced coordination of economic policies in Europe. That doesn’t mean harmonization, because there are different conditions. Germany is not France, Spain doesn’t have the same position as Greece. Ireland the same as Denmark. So it would be wrong to claim harmonization. But as we are all in the market, and in the eurozone, we all have the same money, that there is an obligation, even of a duty of co-operation, of co-ordination of economic policies, because our economies are effectively tied together. That’s where co-ordination is reinforced…we’re all in favour.