We gladly receive and publish this contribution from Jean-Marie Cavada, President of the European Movement-France.
The downgrade of France’s triple-A rating will have significant effects on France and on European construction. For our country, even though the financial markets had begun to anticipate this difficulty, one should expect an increase in interest rates, putting a heavier burden of debt on the state budget. We must not exclude cascading consequences on institutions or local authorities either. All this places France in a state of emergency, and Europe before an unprecedented responsibility since the birth of the Union. In the coming weeks, France must plan a reform plan, and Europe change its dimension. While I want to commend the solidarity of Germany once again expressed last night, the effects of these downgrades of the 9 European countries are extremely dangerous. This pressure washer on the European currency and its indebted member states is a wake-up call that demands drastic decisions as early as the European Summit on January 29.
If the sanctioned countries are primarily responsible for the difficulties that affect them, this forceful passage of rating rules can no longer remain without a solid and immediate response. The European Movement-France expects courageous political decisions since it is now clear that the European Financial Stability Facility is weakened.
The first of these is to equip Europe with euro-bonds and the Central Bank with new means comparable, whether we like it or not, to those of the American Federal Reserve. The second is to urgently commit to establishing a serious European budget.
But above all, it is trust that must be restored by establishing a federal power in Europe for the economy, finance, and currency first. This is the only way to discourage speculation through the political authority of economic decisions. But the responsibility of European leaders is also now to no longer haggle over their concessions because their primary duty is to protect democratic balances, in the face of populists whose only career plans are to isolate France from the rest of Europe, riding the wave of people’s fears.
Jean-Marie Cavada, President of the European Movement-France
Member of the European Parliament
