By Martin Banks - 14th May 2009
Lessons must be learned from the crisis
Joaquín Almunia
Former Bank of France governor Jacques de Larosiere has attacked the ex-Belgian prime minister Guy Verhoftstadt over his claim that the EU had failed to respond to the economic crisis.
De Larosiere's comments come after Verhoftstadt claimed earlier this week that the EU had not done enough to tackle the downturn.
The prominent Belgian politician, who is standing in the European elections in June, was particularly scathing of the commission, saying it had failed to produce a "one single strategy" for tackling the fiscal meltdown.
Instead, he said it had been left to the 27 EU member states to produce "27 separate national recovery plans."
He is a likely frontrunner to succeed Graham Watson as leader of the ALDE group in parliament and has even been touted as a possible president of the commission.
However, speaking at the start of the two-day Brussels economic forum, de Larosiere told this website that Verhofstadt's comments were "very unfair".
He said, "The fact is that the EU and the commission has tried its best to provide a full and measured response to the economic crisis.
"One example of this is the committee of experts it set up. To suggest otherwise, as Mr Verhofstadt has done, is very unfair.
"Yes, there is some fragmentation. But, despite what Verhofstadt says, the EU has got its act together on this issue."
In his report, de Larosiere made several recommendations, including that credit rating agencies should be supervised by a new European securities authority and advocating the creation of a new body called the European systemic risk council and chaired by the president of the European Central Bank.
He urged the EU to implement the recommendations of his report, saying, "This was a well-balanced and moderate report and my key message to the EU today is to act quickly before it is too late."
He said it was difficult to say if the recession would get worse but believes "there is evidence of signs of a recovery".
Gerhard Heumer, of UEAPME, the European craft and SME employers' organisation, told the conference that the economic landscape that will emerge from the downturn "must cater to the needs of the real economy".
"Financial speculation must now be reined in to ensure that it serves the real economy and member states should start thinking about the next economic cycle," he said.
EU economic affairs commissioner Joaquín Almunia told the gathering that "lessons must be learned" from the crisis.
"It is absolutely essential that central banks and governments begin withdrawing the huge monetary and fiscal stimuli that have been put in place since a year ago," said the Spanish official.
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