EU seal deals on economy
2008-12-12 21:09
Brussels - EU leaders sealed an agreement on Friday for a €200bn plan designed to dig Europe out of recession and a package to combat global warming on the final day of a crunch summit in Brussels.
After persuading Ireland to submit a stalled EU reform treaty to a second referendum next year, the 27 leaders then agreed to club together to fund an economic stimulus package and make major cuts in greenhouse gas emissions.
Although the deal on climate change was only sealed after negotiations that stretched on into the afternoon, British Prime Minister Gordon Brown said there had been unanimous agreement on the need for a joint assault on the economic slowdown.
"What Europe has proved unanimously today is that it is ready to act in a united way to deal with the global downturn," Brown told reporters.
"We will continue to reject the do-nothing approach and we will not stand by and let the recession take its course."
Copies of a draft agreement due to be signed at the end of the summit showed the leaders would commit themselves at its conclusion to warding off the threat of a "recessionary spiral".
A mountain of debt
"In these exceptional circumstances, Europe will act in a united, strong, rapid and decisive manner to avoid a recessionary spiral and sustain economic activity and employment," the draft conclusion said.
Brown, whose own domestic bailout plan came under fire from Germany's finance minister earlier this week for just adding to a mountain of debt, said the agreement was a riposte to those "who say you (should) do nothing".
Under the stimulus plan, member countries would pump on average the equivalent of 1.5% of gross domestic product (GDP) into their economies in order to temper the impact of a global recession.
Ahead of the summit, Germany had expressed reservations about ploughing so much public money into the economy and resisted pressure to contribute more than what it judged necessary to get the German economy going again.
Officials working through the night slightly revised earlier versions of the conclusions to say the package should be worth "about" 1.5% of GDP rather than "at least" 1.5% as seen in an earlier draft.
Diplomats meanwhile said that the leaders had agreed on a climate package which they hope will become a model for the rest of the world.
"There is agreement," on the climate and energy proposals aimed at reducing greenhouse gas emissions by 20% by 2020, one EU official said.
The draft text said an agreement on the energy-climate package would be "a major contribution to safeguard the future of the planet, strengthening the European leading role in the fight against climate change".
Deal for Ireland
The EU's climate-energy package, the "20-20-20" deal, seeks to decrease greenhouse gas emissions by 20% by 2020, make 20% energy savings and bring renewable energy sources up to 20% of total energy use.
Officials also confirmed the leaders had formally adopted a deal to pave the way for Ireland to stage a second referendum on a stalled package of key reforms, the Lisbon Treaty.
Under the deal, Ireland would try to hold a new referendum by November 2009 on the treaty in exchange for guarantees on key issues including an assurance that it does not lose its EU commissioner.
Irish voters rejected the treaty, designed to streamline EU decision-making and institutions, at a first referendum in June.