Financial Times, UK
Oct 12 2006

Royal seeks to reignite French passion for EU

by: By JOHN THORNHILL

Segolene Royal, one of the leading contenders for the French
presidency, sketched out her blueprint for Europe yesterday, calling
for a revision of the eurozone’s fiscal rules, harmonisation of
labour market standards and reform of the Common Agricultural Policy.

Europe’s institutions must be brought closer to the people, protect
workers better from the worst ravages of globalisation and promote
environmental initiatives, such as zero tax rates on renewable
energy, she said. A strong Europe was also essential for tempering US
hegemony and alleviating poverty in the developing world.

In a suggestion that will infuriate the UK and many businesses, Ms
Royal, favourite to become the opposition Socialist party’s
presidential candidate, called for the suppression of the "opt-out
clause" allowing employees in some European countries to work more
than 48 hours a week. She said minimum social standards must be
applied across the European Union.

Ms Royal appeared keen yesterday to counter accusations she was all
style and no substance. She was also responding to Nicolas Sarkozy,
the most likely presidential champion of the Gaullist right, who has
recommended a new mini-treaty to make Europe’s institutions work more
efficiently.

At a frantic press conference, Ms Royal read out seven ideas for
reigniting French enthusiasm for Europe and relaunching the European
project. "Europe is blocked. France is isolated. I want to unblock
Europe and lead France out of isolation," she said. "There is a
demand for the French in Europe and a demand of Europe in the world."

Declaring herself to be a convinced European, Ms Royal attacked
politicians for fanning selfish nationalism and turning the EU into a
scapegoat for unpopular economic policies. This had produced only
indifference and distrust towards Europe, leading to the rejection of
the constitutional treaty by French and Dutch voters last year.

She said Europe must overcome its "democratic deficit" and involve
citizens more in its decision-making processes. She said it was not
"healthy" that the European Central Bank was concerned only with
taming inflation rather than encouraging growth and jobs.

She called for the EU’s growth and stability pact, the rules
underpinning the euro, to be revised, allowing countries to exclude
investments in research and -innovation from their budget deficit
calculations.

She suggested the EU budget should be increased so long as the extra
money was spent on sensible -projects, such as research, innovation,
renewable energy and trans-European transport networks.

Ms Royal called for a redeployment of spending within the Common
Agricultural Policy, switching money from intensive farming into
environmentally-friendly agriculture. "No subject should be taboo,
not the CAP nor the British rebate," she said.

The 50th anniversary of the Treaty of Rome, the bloc’s founding
moment, next year would provide the perfect opportunity to debate the
EU’s past and future and think about new rules for governing its 27
member states, she said. This debate would lead to new ideas for
helping Europe emerge from the institutional impasse created by the
rejection of the constitution.

Ms Royal appeared less sure when questioned about Turkey. She refused
to say whether or not she supported Turkey’s accession to the EU,
saying it was up to the French people to decide in a referendum.

The French parliament will vote today on a Socialist bill that would
make the denial of the 1915 genocide of Armenians during the collapse
of Ottoman Turk rule an offence.

The Socialist party’s members will vote for their preferred
presidential candidate on November 16. Dominique Strauss-Kahn, the
centrist pro-European former finance minister, and Laurent Fabius,
the former prime minister turned leftwing firebrand who inspired the
No campaign in last year’s referendum, are also running.