European leaders are meeting on Thursday and Friday in their latest attempt to save the euro. Expectations are high and the pressure is on for leaders in Brussels to agree far-reaching measures to avert the current crisis and prevent a recurrence. But it remains to be seen whether the summit will be enough to calm the financial markets.

Earlier this week, credit rating agency Standard and Poor’s fired a warning shot across the European bow when it announced a review of the triple AAA status still enjoyed by the six strongest European countries. These countries have three months to restore S+P’s confidence in their economies.

We need speed
Dutch Finance Minister Jan Kees de Jager admits that Europe needs to act, but he says one summit will never be enough to solve the entire crisis. “This is a many-headed monster, and it won’t be killed in one blow.” He is optimistic that steps will be taken this week, one way or another.

The Netherlands' approach to this week's summit is flexible. For instance, while not in favour of broad treaty changes requiring public referenda, De Jager is not ready to reject this course of action outright. The main concern, he says, is speed. Europe does not have the time to go through a lengthy treaty-changing process. He adds that changing the Maastricht Treaty, which established the euro, is not necessary. In this, De Jager agrees with EU President Herman van Rompuy.

Brussels
As for Standard and Poor’s warning of a possible rating change, De Jager considers this a message for European leaders “to act decisively and collectively to come up with a total approach to solving the crisis, instead of the piecemeal measures adopted so far.” A bail-out for countries currently in trouble, no matter how large that fund, will never be enough. The Dutch are urging Europe to take measures to make budgetary discipline and economic reform compulsory.

However, De Jager is convinced this will not require countries to relinquish sovereignty to Brussels, which would indeed imply the need to renegotiate the Maastricht Treaty. Rather, Brussels merely needs the ability to enforce current agreements.

Do something
While the Netherlands emerged from the last financial crisis relatively unscathed (with the lowest unemployment in Europe), the fear is that a crisis surrounding the euro will have a much larger effect on this country. About 70 percent of the Dutch economy is generated through trade, making the Netherlands particularly vulnerable to the international economic climate.

So, Jan Kees de Jager does admit to a sense of urgency, even while he tries to lower expectations going into this week’s summit. “For us, it’s about doing something. The manner in which we do it is secondary.”

(rk)