25 May 2012

Speech by European Council President, Herman Van Rompuy, at the National Assembly of the Republic of Slovenia

Taken together, the many small steps we have taken over the past two years actually add up to a significant leap forward. Stricter control of budgets and debt levels, better oversight of bubbles and imbalances, a permanent firewall and rescue funds, courageous reforms, undertaken by countries facing market pressure or benefiting from EU support. Two years ago, nothing of all this existed. Building a lifeboat in the middle of the storm has taken time and energy.

All along, we have kept moving forward on two parallel fronts: responsibility and solidarity. On the one hand enhancing the responsibility of individual countries. On the other giving concrete form to the solidarity that each has towards the whole.

Two of our achievements stand out in that respect: First, the Treaty on the European Stability Mechanism, the permanent rescue fund which will be operational in July – a major step towards more solidarity. Second, the Fiscal Treaty -- a major step towards more responsibility. Slovenian authorities have shown a strong dedication to ensure their speedy ratification. While most Member States still have to complete their national procedures, you have already ratified both treaties. Slovenia’s commitment reflects highly on your country’s sense of responsibility, and on its determination to play its part in our common efforts to overcome the crisis. This is precisely what the Fiscal Treaty is about: each country taking its own responsibilities.

Now, it is about the next step. On the basis of the Treaty, each government commits to bring a strong fiscal rule into their national legislation, preferably at a constitutional level. This Golden Rule (or 'debt brake') is not a commitment to austerity. It is a commitment to structurally financing public expenditure through revenue rather than unsustainable debt. It is a fundamental distinction. Excessive borrowing means that more and more of your public expenditure is spent on servicing debt instead of on public services and public investments. It is a threat to our social model.

Full speech

Remarks by President of the European Council Herman Van Rompuy after his meeting with Prime Minister of Slovenia, Janez Janša

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