Juncker vows Brexit won’t kill off EU

European Commission President Jean-Claude Juncker (L) speaks with first Vice President of the European Commission Frans Timmermans prior to make his State of the Union address to the European Parliament in Strasbourg, eastern France, on September 14, 2016.  / AFP PHOTO / FREDERICK FLORIN

 

Strasbourg / AFP

European Commission head Jean-Claude Juncker on Wednesday issued a rallying cry for unity after Brexit, saying the EU is not in danger of splitting up but must fight back against “galloping populism”.
In his annual State of the Union speech, Juncker unveiled a raft of economic and security proposals to find common ground after a year of crisis, including a European Union defence headquarters.
“The European Union still does not have enough union,” Juncker told the European Parliament in Strasbourg. “There are splits out there and often fragmentation where we need further union, that is leaving space for galloping populism.”
Juncker’s keenly-awaited speech comes two days before the 27 EU leaders meet without Britain in the Slovakian capital Bratislava for a summit aimed at drawing up a roadmap for the future after the British vote to leave.
The head of the EU executive urged Britain to trigger its formal divorce as quickly as possible so that both sides can move on to face the challenges of a dangerous and uncertain world.
“We respect and at the same time regret the UK decision, but the European Union as such is not at risk,” said Juncker, who spoke in a mixture of German, French and English during the speech.
The 61-year-old former Luxembourg prime minister called for ties to “remain on a friendly basis” but warned London could not expect “a la carte” access to the EU’s single market if it brings back immigration controls.

EU defence HQ
Juncker also hit out at rising nationalism and racism, referring to the recent killing of a Polish man in Britain with the words: “We Europeans can never accept Polish workers being harassed, beaten up or even murdered on the streets of Harlow.” With Europe increasingly divided by issues ranging from the migration crisis to terrorism, Juncker’s speech focused on security and the economy to find ways that EU nations can work together.
Juncker said there “must be a European HQ and work towards a common military force” — both plans that Britain had long been hostile to and which will come up at Friday’s summit.
He stressed however that this should be “complementary with NATO” in reference to concerns that the EU will be treading on the toes of the US-led military alliance, which is also based in Brussels.
Juncker meanwhile proposed doubling the size of his signature investment plan to 630 billion euros ($708 billion), and announced measures to help young people hit by the eurozone debt crisis.
With Europe facing its biggest migration crisis since World War II, Juncker also called for a new EU border and coast guard force to start work quickly with 200 guards and 50 vehicles deployed in Bulgaria by
October. He announced an ambitious investment plan for African countries to stem the migration crisis, too.
But the difficulties of keeping Europe united were underscored on the eve of Juncker’s speech when Luxembourg’s foreign minister said Hungary should be suspended from the EU for treating refugees like “animals”.

‘Pleased I voted to leave’
Juncker won polite applause for his speech from MEPs, but was savaged by Nigel Farage, leader of the UK Independence Party which led the push for Brexit.
“Having listened to you, I am pleased we voted to leave,” Farage said. “It was the usual recipe, more Europe — and in this particular case, more military Europe.”
Juncker’s performance in front of 751 MEPs was meanwhile closely scrutinised amid speculation he has health concerns, despite strong denials by him and his spokespeople.
EU leaders are trying to steady the ship after Britain’s shock June 23 vote to become the first country to leave the union, already buffeted by a perfect storm of globalisation, terrorism and mass migrant flows.
At the Bratislava summit, they will start work on a roadmap for the future, including a joint plan by France and Germany for a “more active” European defence policy now that an always reluctant Britain is on the way out. In a summit invitation letter published late Tuesday, EU President Donald Tusk said it would be a “fatal error” for the EU to ignore the lessons of Brexit and urged the bloc to be less “politically correct” on
migration.

British unemployment
rate stable at 4.9%

London / AFP

Britain’s unemployment rate held steady at 4.9 percent in the three months to the end of July, official data showed Wednesday, indicating the economy held up after the Brexit vote.
However, analysts noted that an August rise in the number of people claiming unemployment benefits could signal a more pressured jobs market as firms make concrete plans on hiring after Britain’s referendum result in favour of exiting the European Union.
The Office for National Statistics (ONS) on Wednesday said the May-July jobless rate reading — a low for 11 years — matched the 4.9-percent figure for the three month period that ended in June. A total of 1.63 million people were officially unemployed in the reporting period, down 190,000 compared with one year earlier. The ONS added however that the claimant count rose by 2,400 in August from July. “The labour market is currently proving resilient as employers seemingly adopt a ‘wait and see’ approach after June’s Brexit vote,” said Howard Archer, chief UK economist at IHS Markit. “However, it still looks likely to be increasingly pressurised by mounting uncertainties over the coming months.”
Ruth Gregory, economist at Capital Economics, said the claimant count rise alongside other employment surveys “suggest that the labour market is set to weaken ahead”.
Archer meanwhile said that companies could be set to “clamp down on workers’ pay” to save costs with prices of imported goods rising on a weaker pound.

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