Pierre Vimont said the financial crisis endangers any new program the EU wants to implement in the coming months. France's presidency of the union began in July and ends in December. CLICK HERE for video of Mr. Vimont speaking at Atlanta's Intercontinental Hotel.

France’s ambassador to the U.S. said the spread of the financial crisis to Europe means the European Union may not have the funds to support the programs his country wants to implement during its presidency.

Chaos in the financial services sector has already toppled several U.S. institutions and threatens to do the same across the Atlantic.

Pierre Vimont, France’s representative in Washington, said the EU’s budget is determined by the gross domestic products of its member states, which are not growing as projected because of the economic situation.

The ambassador outlined France’s goals in the remaining three months of its presidency at a lunch Oct. 6 hosted by the French American Chamber of Commerce’s Atlanta Chapter at the Intercontinental Hotel in Buckhead.

The presidency rotates between the EU’s 27 countries every six months, allowing each to promote legislation according to its own priorities.

He said French President Nicolas Sarkozy’s program includes regulating immigration from northern Africa to Europe, providing greater security for the region, combating climate change and increasing alternative energy.

“This is true for every kind of policy France is trying at the moment to pursue: education, health, et cetera,” he said.  “If you don’t have the financial resources for that, the fiscal resources for that, we’re all going to be in trouble.”

Mr. Vimont added that decreasing economic activity would mean less trade between nations, aggravating the situation.

“Maybe let’s not talk about recession yet, but let’s talk about a great drop in economic growth, and that could stay on for a while,” he said.  “Therefore, this will force us to look again at the priorities our government has tried to put forward.”

The U.S. Federal Reserve, European Central Bank and others in Canada, China, Sweden and the United Kingdom made coordinated rate cuts Oct. 8 to try to stem the spreading crisis, but major economic adjustments have been left to individual European countries.

Germany announced Oct. 5 it was implementing a “shield,” for its financial industry, but not for the EU as a whole.  The Danish and Irish governments have guaranteed deposits in their countries’ banks and the U.K. bought shares in eight major banks Oct. 8 in an attempt to kick-start lending between them, according to news reports.

Iceland, not an EU member but a substantial investor in Europe and around the world, is cutting rates to avoid a collapse of its banking sector, the country’s most globally-connected industry.

Mr. Vimont said national governments were free to battle the crisis in whatever way they wished, but encouraged EU countries to cooperate and not interfere with one another.

“Let’s try to work together so that each country, if it wants to take some action in order to prevent any disorder in its financial sector, doesn’t try to do something that will affect its partner on the other side of the border,” he said.

Mr. Vimont said the economic issues were one of several crises the French presidency has faced since it began in June.  Others include the conflict between Russia and Georgia, a potential EU candidate, and the Irish rejection of the Lisbon Treaty, designed to give the union greater decision-making powers.

The ambassador said Mr. Sarkozy took an active role in defusing the conflict in Georgia, and that the country continues to monitor withdrawal of Russian troops from its smaller Caucasus neighbor, which is supposed to be complete by Oct. 10.

The Irish rejected the Lisbon Treaty in a referendum June 13, despite pressure from their own and other European governments to vote “Yes.”  All 27 EU members must accept the treaty before it can be implemented. 

Ireland is the only country to hold a referendum on the measure, but 23 others have accepted it in parliamentary votes.  The Czech Republic and Sweden have not voted on it yet.  The referendum was required by the Irish constitution because the treaty might affect its sovereignty.

Since holding the vote, the Irish have been pressured by European politicians to hold another vote, including by Mr. Sarkozy.

Mr. Vimont said another vote should be held as quickly as possible in order for the 2009 European Parliament elections to be held under the new system.

“We’ve decided to allow time for the Irish to think it over,” he said.  “It’s not easy to go back to your electorate and say you need to vote again.  You need to think about the kind of additional statements or guarantees you can give the Irish in order to comfort them and reassure them and allow them to vote again, I hope in a positive way.”

Another initiative Mr. Sarkozy is promoting is the Union for the Mediterranean, a partnership between the EU, northern African and Middle Eastern countries bordering the sea.

The heads of the 39 countries involved met in Paris in July to inaugurate the partnership, designed to combat ocean pollution, promote small business development and new technology and reform immigration between the regions.

Mr. Vimont said the efforts are to continue with annual meetings of the heads of state.