Financial Mirror (Cyprus)

Big Three insist EU “not over” after Brexit

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The leaders of France, Germany and Italy reiterated on Monday that Britain’s decision to quit the European Union would not kill the bloc. Merkel suggested she could be flexible over EU budget rules, as Rome grapples to kickstart its stalling economy, the EU news and policy site EurActiv reported.

Speaking on board an aircraft carrier anchored off the Italian island of Ventotene, one of the cradles of the dream of a united and integrated Europe, the leaders vowed to strengthen the European project following the Brexit vote.

“Many thought the EU was finished after Brexit but that is not how it is,” host Prime Minister Matteo Renzi said.

Calling out the continent’s euroscepti­cs, he said it was “easy to complain and find scapegoats.”

The EU “is the answer” to Europe’s problems, cemented “peace, prosperity and freedom,” he according to AFP reports.

German Chancellor Angela Merkel recalled that the EU had been born from some of the “darkest moments” of European history, a reference to World War II.

Echoing Renzi, she said the time had come to “write a better page” in European history.

French President Francois Hollande warned that Europe was faced with a risk of “fragmentat­ion and division.”

It needed a “new impulse” on three fronts: the economy; defence and security; and ensuring jobs and education opportunit­ies for young people, Hollande said.

The three leaders were speaking ahead of a working dinner aboard the Italian aircraft carrier Giuseppi Garibaldi as the sun set over the Naples coast. In a symbolic move, the Italian PM earlier took his guests to the tomb of Altiero Spinelli, a founding father of the ideal of European integratio­n.

Renzi called the meeting in a bid to forge a common position on the EU’s future ahead of a summit of the 27 remaining states in Bratislava on September 16.

Europe’s economic outlook, jihadist attacks, the refugee and migrant drama, the Syrian conflict, and relations with Russia and Turkey were also discussed. for it said,

The Brexit vote has raised fears of similar referenda in other countries, particular­ly the Netherland­s, which opposes changes to the EU to achieve closer integratio­n.

But coming up with a road map acceptable to all will not be easy.

The Czech Republic, Hungary, Poland and Slovakia vowed after Britain’s vote to draw up their own plans for a less centralise­d EU.

The Ventotene trip was the start of an intensive tour for Merkel as she attempts to coordinate a response to one of the EU’s biggest crises in decades and quell fears Berlin wants to monopolise the debate.

Renzi, who is campaignin­g for greater flexibilit­y on EU deficit rules to help his flagging economy, said “we need strong measures to relaunch growth and fight youth unemployme­nt”.

Rome is seeking a new deal with the European Union to allow it to boost its weak economy with an expansiona­ry 2017 budget. An Italian minister suggested earlier in August that this could mean letting the 2017 budget deficit run higher than previously planned, possibly up to the 3% of GDP ceiling enshrined in the eurozone’s Stability Pact.

Merkel gave strong backing to Renzi, suggesting she could be flexible over EU budget rules.

“Matteo Renzi has initiated courageous reforms including the jobs act here in Italy. It won’t show results within four weeks but it sets the parameters for a sustainabl­e and successful Italy.

“I am doing everything in my power to support him with this,” she said.

Asked about flexibilit­y Renzi is seeking to finance investment in 2017 to kickstart Italy’s timid economic growth, Merkel signalled her openness.

“I think the Stability Pact has quite a lot of flexibilit­y that we can use in a clever way. That is the responsibi­lity of the (European) Commission – it’s not one (EU) member state that decides vis-a-vis another. Hollande called for an EU investment fund for infrastruc­ture, education, research and innovation to be beefed up.

All three leaders have been hit in the polls by varying toxic combinatio­ns of refugee crisis, economic slump and terror attacks, with euroscepti­c or populist parties gaining ground.

Their room for manoeuvre is restricted. Next year will see a general election in Germany and presidenti­al and legislativ­e elections in France.

After a series of deadly attacks by the Islamic State, the three leaders are also expected to explore greater cooperatio­n on counter-terrorism and an integrated European security and defence policy – a cherished objective that some analysts say could be easier to achieve after sceptical Britain departs.

“In light of Islamic terrorism and the civil war in Syria, we have to do more to ensure our security. We should increase cooperatio­n on matters of defence and the sharing of intelligen­ce,” Merkel said.

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