30 October 2013

VP Reding: EU needs finance minister

United States of Europe

I believe that we should start moving towards a United States of Europe - a model of government that draws the right lessons from the errors of the past: a model that further deepens the political and democratic foundations of the European Union. In the heat of the crisis, some new rules and institutions had to be set up outside the framework of the European Treaties, like the European Stability Mechanism, our kind of "European Monetary Fund" that will support Member States experiencing financial difficulties. Because we had to take speedy decisions, not for Europe alone but also taking into account repercussions on world markets, on partners and friends.

But from a democratic and parliamentary point of view, this cannot and must not be a long-term solution. Decisions must not be left exclusively to “troikas” of financial experts. On the contrary, I believe that debates about long-term solutions must be conducted in full view of the public in the European Parliament.

I believe that, as in the US, we will need a two-chamber system for the United States of Europe. Perhaps one day in the future we will need a directly elected President of the European Commission. The Presidential election campaign in the USA has shown us what a mobilising effect such a decision about a single person can have for a whole continent.

European Finance Minister

What we certainly need is a European Finance Minister. One person who protects the interests of all Member States and speaks for them in international institutions. Someone who really sees the bigger picture. Like Jack Lew, your Finance Minister. He is responsible for the federal budget and the interest of the US as a whole – not for the finances of Ohio.

This is one way in which the US can inspire us when moving into the future. Maybe we can offer some inspiring ideas to you in return. I know the debt ceiling is a topic that keeps causing painful discussions in your country. You know what countries in the EU have done? They have pledged to implement so-called debt brakes to make sure they put their finances on a responsible path.

More democratic control and accountability require politicians to be ready and able to engage in direct dialogue with ordinary citizens, something you are very well accustomed to. Of course, we cannot create the United States of Europe overnight. But we should start now.

All this is for the choice of the people. Next year will be the year of choice in Europe. In May 2014 we will see the election of a new European Parliament and subsequently a new European Commission. It will be a decisive year in any account.

TTIP

This agreement will set the standard - not just for our bilateral trade but also for the development of global trade rules. The size of the transatlantic market is so big that if it had a single set of rules it would be in the interest of other countries to adopt them too. It would set a model for others to follow. That way, they would only have to produce goods to one set of specifications, making trade easier and cheaper.

Last but not least, the challenge of international regulatory cooperation: if the EU and the US work hand in hand they pave the way for future global approaches to these issues. Today the World Trade Organisation is not in a position to take up these challenges.

The US and the EU are ready though - sitting on the same side of the table. Indeed, far from signalling the end of multilateralism and the Doha Round, TTIP could actually encourage others to restart the WTO negotiations. Or to put it simpler: TTIP will not only break down cumbersome barriers but help prevent new ones being built in the future.

Full speech

© European Commission