By Daisy Ayliffe - 19th September 2005
A divided Europe needs a "stable solution" in Germany following Sunday's election result, José Manuel Barroso said on Monday.
The European Commission President is concerned that political uncertainty in Germany will damage efforts to resolve EU rows over Brussels spending and economic reform.
“I urge German leaders to find a stable solution as soon as possible for Germany,” he said. “Without a dynamic Germany, Europe cannot recover.”
As Europe’s leaders prepare for a critical October summit on the future of the Europe, political manoeuvring in Germany could be a key factor.
EU officials are concerned that German uncertainty over government, after a bitter election with economic reform at the fore, could inhibit thorny questions about the future of Europe’s social model.
A Tuesday European Commission seminar on the future of Europe kicks off a series of discussions and informal summits on the future of the EU.
The social model, Brussels budget battles, protectionism and EU enlargement talks will all be on the table in the weeks ahead.
British leader Tony Blair threw down the gauntlet to member states when he took over the EU presidency in July.
Calling for urgent free-market reforms, most commentators suggested he had hoped a clear Angela Merkel victory in Germany would help revive his agenda.
Blair has promised Europe's social model will come under close scrutiny at an informal summit scheduled for October 27-28 at Hampton Court Palace near London.
In a speech to the commission’s Market Access Symposium on Monday, Trade Commissioner Peter Mandelson reiterated the urgent need for a new social model.
“We need a better, more effective social model,” he declared.
“The economic challenge facing Europe is urgent and inescapable. Since the Lisbon agenda was first proclaimed, the growth rate of Europe’s productivity has actually declined. A social model that results in twenty million people unemployed, and tens of millions more working age inactive, cannot be judged a successful social model.”
Mandelson called on Europe to move away from protectionism and prepare itself for the challenges of “perpetual adaptation and perpetual modernisation.”
“If we manage to put some sort of protective wall in place do people seriously think that companies would be under the same pressure to innovate and raise their competitiveness behind this wall?”
With the start date for Turkish accession talks looming, questions over the future size of the EU will also be weighed up.
Once again Germany’s election result could impact in this area - with Schroeder supporting Turkish membership but Merkel arguing Ankara should be offered only a “privileged partnership.”
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