Europe uniquely placed to lead the world through global crisis, says Brown
 
“Today we enjoy a Europe of peace and unity which will truly rank among the finest of human achievements and which is today a beacon of hope for the whole world”, the British prime minister told the House.  He was proud to say that Britain today was a country “not in Europe's slipstream but firmly in its mainstream”.
 
Europe was uniquely placed to lead the world in meeting the challenges of globalisation precisely because it had achieved “the greatest and biggest single market in the world”, “the most comprehensive framework of environmental protection”, “the world's biggest programme of aid” and “the most comprehensive social protection anywhere in the world”.
 
However, he stressed, “our whole experience as a European Union is that liberty, economic progress and social justice advance together or not at all” and he wished to discuss how applying those values could help Europe and the world rise to the “four great challenges of globalisation”: financial instability, environmental degradation, extremism and the threats it brings to security, and growing poverty in the world.
 
Globalisation has violated moral boundaries
 
“Let us be honest with each other: our global economic system has not just developed but been distorted in ways that run contrary to the values we celebrate and uphold in every other part or our lives”, said Mr Brown.  “Just as globalisation has been crossing national boundaries - we know it has been crossing moral boundaries too”.
 
He therefore proposed that Europe take a central role replacing the “Washington consensus” with “a new consensus for our times”.   First, he stressed, protectionism must be rejected as “protectionism is the politics of defeatism, retreat and fear and in the end protects no-one at all”. Turning to constructive moves, Mr Brown called for every continent to make the changes to its banking systems, cooperate in setting global standards for financial regulation and inject resources into their economy.
 
Amid the crisis, the world's poorest people must not be forgotten
 
Among other measures, he called for “the end for offshore tax havens”, recognition that any fiscal stimulus to the economy “can be twice as effective in every country if it is adopted by all countries”, and efforts to “build a low carbon recovery”.  He also stressed that the countries of eastern and central Europe who are facing particular strains due to a flight of capital will not be abandoned, saying “We will not walk away from you at your time of need”.
 
The need too maintain aid to poorer countries was another point emphasised by the prime minister, who pointed out that half a million more children are dying as a result of the global crisis.  He repeated his well-known appeal for the world “to make poverty history”.  
 
Lastly, Mr Brown stressed the importance of EU-US cooperation on all fronts, saying the most urgently needed gift of such cooperation would be “more jobs, more businesses, more trade, as together we meet and master the greatest challenges of our time”.
 
“It is better to aim too high and fall short than aim too low and succeed”, he said, quoting the saying attributed to Michelangelo.
 
EP President welcomes Brown's “active international leadership”
 
In his introduction, European Parliament President Hans-Gert Pöttering had said the G20 summit “offers a vital opportunity for the leaders of both the industrialised world and the emerging economies to work together on a common agenda for immediate economic stability - and longer-term recovery”. 
 
He continued “As chairman of the G20, Gordon Brown has been offering active international leadership, at what is proving to be one of the most difficult times in recent history” and added “I have always believed that it is vital that Britain plays a committed role as a central player in the European Union. We strongly welcome your determination to play such a role.”
 
European Commission President
 
I am confident that the G-20 summit, under Prime Minister Brown's leadership, will be a success“ said Commission President José Manuel BARROSO, reminding the House that the initiative for a global response had ”come from Europe“, and that ”the EU has a particular responsibility in the summit“.
 
”A unified message and proactive agenda“ for simultaneously stimulating the economy and regulating all financial players, from banks to hedge funds to new rules on credit rating agencies, should come out of the London summit, he said. ”We need to reject all forms of economic nationalism and protectionism, and to reaffirm our commitment to the Millennium Development Goals“, he stressed.
 
This severe slowdown calls for a co-ordinated response, to ”move the frontiers“ of financial regulation, from which ”no financial product, institution, market, or jurisdiction“ should be exempt, said the President, adding that the coming weeks would bring proposed rule changes on hedge funds, private equity and executive pay, to be followed by proposals for a new supervisory system. These actions are only a ”means to an end: improving people's wellbeing“, he said, stressing the need to mitigate the effects of the economic downtown on employment.
 
European Parliament political group leaders
 
Joseph DAUL (EPP-ED, FR) pointed out that the crisis had ”started in the USA“, and stressed that ”Europe will be strong only if it speaks with a single voice“ at the summit. The G-20 leadership provided by Presidents Barroso and Sarkozy of France had helped restore order to a system that had got out of control, he said. Mr Daul then cited the latest IMF figures on the UK and Hungary as ”a cause of concern“ - as a former fireman, he said, he had too often seen fires spread to neighbouring houses.
 
”Before the left-wingers start telling us we must spend money we don't have, please note that it was this that led to the problems of the 1980s“, said Mr Daul, nonetheless acknowledging that Mr Brown's government had not been in power at the time.  It was the market economy that boosted West Europeans' average income by 40% in 40 years and gave them 2% average annual growth, he continued, noting that this had not happened behind the Berlin Wall.  The banks had to be supported to prevent their customers from losing everything, and the recovery programme, together with single market leverage, will help to overcome the crisis, he added, advising Mr Brown to ”avoid slogans such as 'British jobs for British workers'“, and ”remember you are a true European“. The Commission must ensure that laws are enforced to make the market free and fair, and the Basel II requirements must be put into effect, he concluded.
 
Mr Brown's speech was a ”courageous, brilliant description of the way to go, and we subscribe to every word“, said Martin SCHULZ (DE) for the Socialist group.
 
As to Mr Daul's remarks, he continued, ”the least you can expect of the chairman of a European Parliament political group is that he understands the difference between protectionism and social protection“. President Sarkozy ”may know about protectionism, but he knows nothing about social protection“, he added. That Mr Brown had chosen to give his agenda-setting speech here also showed that Parliament is now a true forum of international and multinational politics, said Mr Schulz. ”It was not greed that was decisive, it's the way the system allowed greed to spread - and now untrammelled liberalism has failed, said Mr Schulz, expressing sympathy for right-wing colleagues forced to accept that “their policy, pursued for decades, has now gone pear-shaped”.
 
Mr Schulz hoped that renewed relations with the USA would usher in a new era of solidarity among peoples - and “anyone who tries to play off environmental policy against economic policy will be making a fundamental mistake”, he warned, pointing to the job-creating potential of climate change mitigation measures.
 
“The more the right howls, the more you know you are on the right track”, he said in conclusion to Mr Brown.
 
Graham WATSON (UK), on behalf of the ALDE Group said “You have sketched a big agenda for the G-20 from combating world poverty to nuclear disarmament to peace in the Middle East and I wish you success”
 
“Opportunities to work with the Obama administration should not be spoilt by a transatlantic war of words. I know we share that view but America retains its affection for skeletal regulation and the reality of this recession shows that those who wilfully ignored bad practice are now suffering most.
 
”We need a new and sustainable economy enshrined in a global social contract. The era of easy money is passed. For future growth making a living must not equate to making a killing.“ But to achieve these things Europe must marshal consensus and the UK must be part of it.
 
So let Britain be a positive partner cast in the European mould. ”I expect the single currency to emerge stronger from this crisis in the chill winds of recession investors have sheltered under the euro’s wing. You designed five Byzantine tests that prevented British entry these past 10 years. Will you now work to bring the United Kingdom into the euro in the post-recession period? The UK should not stand back to the wall while others take to the floor this is a dance that Britain should join.“
 
Speaking on behalf of the UEN, Brian CROWLEY ( IE) commended Prime Minister Brown on presenting a case which ”offers a bridge between Europe and America with regard to some of the problems and difficulties that lie before us.“  However, he stated that despite the global financial crisis, ”we should not be allowed to forget the successes of the past fifteen years.“ Brian Crowley advocated building a financial system based on ”the successes of the past, recognising the failures that had been made and ensuring that we can  chart an ambitious plan forward for a global recovery.“  Above all, the new financial system should guarantee ”better things for people not markets.“
 
Monica FRASSONI (Greens/EFA, IT) called for Mr. Brown to back up his speech with actions to bring the UK into the euro or to end some of the UK's opt outs saying the UK ”was on the wrong side of the argument“.  Ms Frassoni also called for an end to, rather than a regulation of speculative funds, and for a reduction in the incomes of those who speculate.  She pushed for the UK to take more concrete actions on the environment, as currently ”only 7% of investment“ is going into green investments.  She also spoke out strongly on the forthcoming Copenhagen summit stating that ”without strong financial commitments, [it] is doomed to failure….along with our ambitions for climate change.“
 
Francis WURTZ (GUE/NGL, FR)  stated that since the fall of the Berlin wall, the EU finally gave ”free rein to unbridled capitalism“, which has since ”outpaced“ its creators.  He called for more ”humility“ from public leaders concerning the economic crisis, highlighting the attitude the President of Morgan Stanley Asia who recently stated that 'We are all responsible: the financial institutions, the regulators, the rating agencies, the management boards, the politicians, the central banks (...) and we all have to assume that collectively.'  In light of the financial crisis, Mr Wurtz reiterated the call to ”put people first“, which he claimed would represent ”a Copernican Revolution“ in relation to what the dominant financial system has become. 
 
Nigel FARAGE (IND/DEM, UK) accused Mr. Brown of breaking ”a specific manifesto pledge“ to have a referendum on the Lisbon Treaty, claiming that such an action ”devalued democracy.“  He stated that ”a clear majority of the British people want us to have friendship and free trade with the European Union, but do not want us to be members of this political union.“  He called for the people of Europe to be able to decide their own destiny, rather than having it done ”through parliaments like this or parliaments like Westminster.“ 
 
Daniel HANNAN (UK), of the non-aligned MEPs, criticised Mr Brown for ”saying one thing here and another thing to your electorate“.  He argued that the UK was in the worst position of any country in the G20, saying ”our country as whole is in negative equity“ and has a budget deficit of 10% ”more than Pakistan's“.  He described Mr Brown as the ”devalued Prime Minister of a devalued government“.