By Martin Banks - 10th January 2012
Fiscal austerity alone cannot solve our problems
Sir Graham Watson
Senior MEP Graham Watson has warned that the economic crisis could be the "first of many".
Speaking on Monday, the former ALDE leader said, "Finding a credible solution to the economic crisis remains the number one priority.
"This will inevitably require greater fiscal coordination, discipline and solidarity among eurozone countries."
Watson, who was speaking in London where he convened a meeting of leading liberal politicians, said the draft 'reinforced economic union' (REU) treaty under discussion at present "is one step in this regard".
He added, "But fiscal austerity alone cannot solve our problems. Unless we tackle the underlying cause of the crisis – Europe’s chronic lack of competiveness in the global economy – this crisis will be the first of many more to come."
"What Europe needs is an urgent and far-reaching reform agenda to unlock jobs and economic growth across the EU; a European liberal agenda for the 21st century."
Watson, who is now president of the European Liberal Democrat and Reform party (ELDR), added, "Europe has done this before, and reaped the rewards.
"The single market programme of the 1980s and 90s was a truly remarkable liberal achievement, tearing down trade barriers within Europe and unlocking unprecedented levels of new jobs, growth and prosperity.
"We need to recapture this level of ambition."
He called on EU leaders and institutions to use the extraordinary summit at the end of this month to "kick-start and drive forward" a plan for jobs and growth.
The meeting included leading government ministers, party leaders and European commissioners from Liberal Democratic parties across Europe.
Another speaker was Nick Clegg, the UK deputy PM and leader of the Liberal Democrats.
Topics addressed included European economic growth; the eurozone and treaty change and the multiannual financial framework, the EU's long-term budget strategy.
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