By Martin Banks - 3rd November 2011
The last 18 months of hesitation and half-measures have only added fuel to the fire
Guy Verhofstadt
ALDE group leader Guy Verhofstadt has castigated the EU and member states for "hesitation and half-measures" in tackling the economic crisis.
The former Belgian premier said the "tentative" approach taken by EU leaders such as German chancellor Angela Merkel had "not stopped the rot".
His comments come ahead of a crunch, two-day G20 summit in Cannes starting on Thursday which is expected to be dominated by plans to hold a referendum in Greece on the EU's bailout plans.
The eurozone has been plunged into renewed turmoil by Greece's decision to hold a referendum on the EU's efforts to bailout its stricken economy.
In October, the commission, the European Central Bank and the International Monetary Fund said they had reached agreement with Greece on reforms to put the nation back on track.
However, the troika has now suspended the next tranche of €8bn in international aid and called on Athens to decide whether or not to remain in the eurozone.
Verhofstadt, who has taken a high-profile stance on the economic downturn, said the crisis was "fuelling anti-European sentiment" across the EU.
He said, "The inability of EU leaders to agree on a common and decisive strategy is resulting in persistent turbulence in the markets."
He argued that a "relatively small injection" of capital into Greece in early 2010 would have sufficed.
"Instead, the last 18 months of hesitation and half-measures have only added fuel to the fire."
Verhofstadt warns that only "bold and substantial policy changes" can now restore confidence in the market place.
He says these might include recapitalisation of banks, European "stability" bonds and giving a senior EU commissioner responsibility for overseeing Europe's finances.
"This would avoid the disparate voices that we have at present," he suggested.
The deputy also says France and Germany, "historically, the motor of European integration," should take the lead in tackling the crisis in the eurozone.
He says that most recently, member states have "tried to bypass the commission and invent new, weaker methods of cooperation".
