EU leaders must avoid false choice between improving regulation and boosting economic growth

10.06.00am GMT Thu 19th Mar 2009

Graham Watson MEP

Graham Watson MEP, leader of the Alliance of Liberals and Democrats in the European Parliament is in Brussels today and tomorrow following the discussions between Heads of State to coordinate a response to the ongoing economic and financial crisis and prepare for the G20 talks early next month.

"EU leaders must unite around a common sense of purpose and action if they are to rescue the EU from deeper and prolonged recession", he said. "There can be no choice between tighter regulation and additional fiscal stimulus. We need to supply both the counter-cyclical measures necessary in the short term and the right supervisory framework for the longer term."

"Divisions at this summit on the important questions of how to boost our economy risk leaving ministers fiddling whilst Europe burns."

"EU leaders must sign off on the Larosière recommendations for plugging the holes in our prudential supervision and increasing transparency and accountability of all financial instruments and institutions.

"It is also make or break time for agreement on the additional €5bn injection towards energy and transport networks that will lay the foundations for our future growth.

"The strength of the single Market and the flagging Lisbon Strategy (now almost 10 years old) remain key planks for Europe's future prosperity. EU leaders will bear full responsibility for any failure to support a collective economic response. This is Europe's day of reckoning."