Standing in quicksand

Levy a tax on financial institutions and demonstrate their solidity by disclosing the results of ongoing stress tests: at the European Council Summit on 17 June, the EU's 27 member states mainly focused on technical measures. This time around, there were no major initiatives like the €750 billion in funding to stabilise the euro, but a message addressed to financial markets which continue to speculate against certain countries in the eurozone.

Stability funding will give Europe a degree of independence from the rest of the world. The publication of ongoing bank stress tests will demonstrate to the markets that the banks are more solid than they are purported to be. The tax on financial institutions will enable Europe to take the initiative on a global level: the measure will be tabled for discussion at the next G20. Of course, it will be some time before the effectiveness of these measures can be gauged (and, as our press review shows, the European media is divided on this question). In the meantime, like someone stuck in quicksand, the European Union, is faced with a very limited range of options. If it chooses to do nothing, it will be wholly dependent on external assistance, however if it moves, it will draw attention to its vulnerability and risks sinking a lot quicker.

Against a backdrop of financial malaise, the EU also has to contend with the challenge of maintaining cooperation between its 27 member states and its own institutions. Not easy when you consider that we have reached a point of transition in the EU rotating presidency where Spain, a country which may become the next target for the markets, is about to hand over to Belgium, a country with an uncertain future that will probably be without a government for several months to come. With so much quicksand underfoot, the value of solidarity is now more important than ever. And it should serve as a guiding principle for the EU, and in particular for its self-proclaimed "Franco-German motor."

Eric Maurice