European Parliament, Strasbourg

Yesterday, interest rates in the bond market rose to

7.05 for Italy

6.27 for Spain

3.64 for France.

Germany has a triple A rating too yet France has an interest rate today that is double that of Germany's. What's the value of such ratings? 

What is obvious is that the euro crisis has reached a point where everything is possible. Even the most dramatic scenario. Really, and I repeat myself, it is necessary to take real in depth measures, in depth reforms, beyond those taken on the 21 July and the 26th of October.

Again, we need an initiative of the European Commission. The Commission has to launch a global and bold plan to tackle the crisis. What certainly must end now, is two countries, France and Germany, meeting each other once every two weeks and fixing half measures that calm markets for only 24 hours.

Again what we need is a global approach, a global action plan and a roadmap, an "Act to establish a real economic and fiscal Union".

I have sent to all of you what could be the key elements of such an Act:  

1. We need a real economic government for the eurozone with enhanced powers, based on the Commission;


2. We need a convergence code for Member States with minimum and maximum standards to be applied to the main pillars of their economies;


3. We need a further strengthening of the stability and growth pact beyond the sixpack; the European Commission and not the Member States must monitor compliance and decide on sanctions


4. We need a new growth strategy for the Union


5. We need a European Monetary Fund (EMF)


6. We need to conclude on the Green Paper on eurosecurities (stability bonds)


7. And finally, I think we need to look into the proposal made by the five wise economists from the German Council of Economic Experts. In their opinion, a key element to end the crisis is the establishment of what could be called a European collective redemption fund. This would mutualize the debt in the eurozone above 60 %, combined with a bold debt reduction scheme for those countries, which are not on life support from the EFSF. 

The existing EFSF and the ECRF together should have a firepower of 3.3 trillion euro.

So I repeat, one way or the other we need a system of eurobonds within the 60% or beyond the 60% threshold if we want to end this crisis.

Change of leadership in Greece and Italy is important, no, it's crucial, but it's not decisive to end the crisis.

Only a real economic government combined with a form of eurobonds can stop this.

The final question is, is a change of the Treaty necessary?

You don't need to change the Treaty to discuss and to conclude on the "Act for an economic and fiscal Union" that we need. 

And much can be done inside the existing Treaty. 

But changes are necessary. Then it is our position that in such a case, a Convention is needed.