Update: Barroso warns MEPs coming year was 'Europe’s moment of truth'

Watch entire Barroso speech here (source: EP)

Addressing a packed plenary session in Strasbourg this morning, Barroso told MEPs that the coming year was “Europe's moment of truth”. “We either swim together or sink separately,” he warned.

“We will only succeed if, whether acting nationally, regionally or locally, we think European,” Barroso insisted.

Barroso explained how this month's review of the 2007-13 EU budget would launch a debate “without taboos” to prepare for the next budget.

The next budget, which starts in 2014, would be negotiated by Member States and the EP in 2011.

He announced that the Commission would look at finding new sources of financing to help big infrastructure projects across Europe, such as roads and bridges.

The Commission president explained how he would propose setting up EU project bonds together with the European Investment Bank (EIB), which would help pay for the construction projects.

Barroso also suggested that MEPs looked at a 10-year spending plan, instead of the current seven-year plan.

The EC President explained how a “five-plus-five option” would allow for a review at the midway point of the budget that would also fall in line with the five-year terms of the Commission and the Parliament.

Barroso added that the EU's fragile economic recovery was starting to gain traction but would need the support of renewed legislative efforts to sustain it as well as a strong EU budget and new long-term spending programme to show taxpayers that European solidarity “offers real added value.”

He promised to present the Commission’s proposals in the autumn for a financial transaction tax, although the idea faced opposition from a large number of Member States.

The tax plan was part of a series of economic and financial legislative measures that Barroso pledged MEPs in the coming months. According to the EC President, these would help “stabilise the euro and strengthen the EU's financial sector”.

Barroso also called for more intensified efforts on the world stage to secure a new climate change deal and to ensure global donors met United Nations (UN) development aid targets through the Millennium Development Goals (MDGs).

He highlighted a number of further initiatives for the autumn in his speech including a “single market act” that would seek to remove the bottlenecks in the internal market.

Barroso also pledged to present to the EP by October a detailed legislative programme outlining his legislative priorities.

He received a round of applause when he called on EU governments and citizens to “respect human rights, including those of minorities,” insisting that racism and xenophobia had “no place in Europe.”

Barroso called on EU governments to act “with responsibility” when a problem arose. “I make a strong appeal not to re-awaken the ghost of Europe's past,” he insisted.

The EC President’s comments were a thinly-veiled way of condemning the French Government’s actions by expelling Roma to Romania and Bulgaria.

The Commission was examining whether the French actions complied with EU law on the free movement of people and on fundamental rights. European Justice and Fundamental Rights’ Commissioner Viviane Reding was drawing up a report on the situation which will be released in the near future.

Plan to fine absent MEPs scrapped after ‘revolt’

Meanwhile, widespread opposition from MEPs had earlier today led EP political group leaders to scrap their plan to force members to attend Barroso’s important speech yesterday morning.

EP President Jerzy Buzek told the plenary session that because of the opposition, the EP leadership had decided to drop a plan that would have forced MEPs to “check-in” three times during the debate.

MEPs who missed the speech faced a possible fine, which would have been deducted from their daily allowance.

“The process of checking to see if members are present won't be applied,” Buzek announced his u-turn to a packed chamber this morning.

However, he warned that the Parliament's bureau, a committee made up of the assembly's President and 14 vice-presidents, would continue to “mull over” the idea for future debates.

The bureau had decided to drop the plan during talks last night following a revolt by MEPs.

“We agree we need to beef up MEPs' presence during key debates,” Buzek told MEPs. He insisted that MEPs “had a responsibility to the public” to show up for debates and other parliamentary duties.

MEPs had staged a revolt against the forced “check-in” procedure, which was intended to make sure Barroso addressed a packed session.

Many MEPs had warned such a move “would violate their freedom as elected officials”.

Parliament officials were quoted as saying the main reason why the plan was eventually dropped was “fear that it would overshadow Barroso's address to the Parliament”, during which he outlined his priorities for the next year.

Empty seats during previous debates with Barroso, other EU Commissioners and foreign dignitaries had led to widespread embarrassment within the Parliament.

MEPs were already forced to attend all votes. If they failed to show up they faced a deduction of their daily allowance.