JOSE MANUEL BARROSO THE EUROPEAN COMMISSION AND THE GOVERNANCE OF THE EU INTRODUCTION MASSIMO BORDIGNON

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1 THE EUROPEAN COMMISSION AND THE GOVERNANCE OF THE EU JOSE MANUEL BARROSO INTRODUCTION MASSIMO BORDIGNON Colloqui sull Europa 16 March 2012 Catholic University of Milan

2 I colloqui sull Europa Not full understanding of the EU role and its rules of governance; what the EU does and how it does so; A policy debate that remains dramatically national: Europe presented only as a constraint, not as a mean to address common challenges; Our Colloqui : open conversations on the perspectives and limits of the European construction with first rate protagonists;

3 Our previous speakers Romano Prodi, former President of the European Commission, on Europe s role in a globalized world; Mario Monti, former commissioner in the European Commission, on the policies for the Common Market; Mario Draghi, former governor of the Bank of Italy, on the future of the Euro;

4 Today s speaker Jose Manuel Barroso gained a degree in Law (Lisbon) and a MSC in Political Science (Geneve). He also studied in the US (Columbia, New York; Georgetown, Washington DC), in Luxembourg (International University Institute) and Italy (European University Institute); He began his career as an academic: teaching assistant in Lisbon and in Geneve, visiting professor at Georgetown, Washington. Head of the International Relations Dept. at Luisadia University, founding the University Association for European studies in 1979;

5 Today s speaker He moved to politics in 1980, joining the Social Democratic Party. He was first elected in 1985 and acted as a member of government in different positions from 1985 to 1995, in the last three years as Minister for Foreign Affairs; Prime minister of Portugal from 2002 to 2004; President of the European Commission from ; Re-elected President of the European Commission in 2009;

6 Today s topic: EU governance Since December 2009, and after rejection of the European Constitutional draft (French and Danish referenda, 2005) the EU ruled by the Lisbon Treaty; Enhanced role for the European Parliament in the legislative process (co-decision procedure); larger role of QMR (dual majority rule since 2014) for Council decisions; a permanent President of the EU Council and a high representative for foreign affairs; a Passerelle Clause for further institutional change;

7 Today s topic: EU governance But EU governance has remained weak in crucial areas, as shown by the management of the Euro crisis -the worst crisis Europe ever faced and able to threaten all EU construction...we badly missed a governance structure since the launching of the Euro H. Van Rompuy to the EP, February The EMU crisis has been managed by member states, with little role for European institutions such as the European Commission and the European Parliament.

8 The EMU/EU and the crisis This has led to delays in facing the crisis, endless bargaining, short termism in decisions as national political leaders answered to their own national electorate; Also, for constitutional and political reason, the ECB could not work fully as a lender of last resort; The resulting uncertainty has deepened the crisis and made the solutions still unsatisfactory; Too much focus on fiscal stability and too little on growth enhancing policies;

9 Debt and deficit (% GDP 011)

10 EMU/EU has a democratic legitimacy problem.. The management of the Euro crisis has also deepened a structural legitimacy problem of the European Union; Popular support for the EU is eroding and it is increasingly concentrated in the elite;

11 Support for euro

12 Support for euro, the trend in 2011

13 Turnout at the European Elections ( )

14 The crisis: a new opportunity for institutional change? Sharing a currency is not the same as sharing a market. A monetary common area needs much stronger integration across member states and centralized institutions for macroeconomic management (including probably some European own funds); Does this imply a two speed Europe? Existing Enhanced Cooperation Agreements enough to accommodate the needs of diverging European countries interests?

15 The crisis: a new opportunity for institutional change? How to address the legitimacy problem? A proposal that is gaining support: Merging the figure of the President of European Council with the President of the Commission and having her/him elected in pan- European elections; An elected President would revive citizens interest in the EU and ignite a political dynamics leading to a strengthening of the European government vis a vis the member states.