The extra economic reform "breathing space" granted to enable EU countries to meet deficit-cutting requirements and boost growth was welcomed by MEPs in Monday's joint economic affairs and employment committee debate with Commissioners Olli Rehn and László Andor. MEPs also criticized the analysis and economic theories underlying austerity recommendations.
MEPs were broadly critical of the outcome of last week's EU summit on tax evasion and energy, as reported by Commission President José Manuel Barroso and European Council President Herman Van Rompuy on Tuesday. Some political group representatives felt the summit's conclusions were "too little, too late". Others said it had failed to address the real problems or to set any real deadlines for achieving stated aims.
Economic and Monetary Affairs Committee MEPs quizzed Commissioner Barnier Monday on his upcoming proposals for dealing with banks in trouble. They pressed him to present an ambitious plan. Other questions concerned planned legislation on shadow banking and insurance as well as transatlantic relations.
Taxpayers and savers must be the last people called upon to bail out banks, says Parliament's negotiating position, approved by the Economic and Monetary Affairs Committee on Monday, on draft rules on saving struggling banks. The text rules out using deposits below €100,000 and says that even deposits above €100,000 should be the last to be called in. The committee voted against using deposit guarantee funds for resolution actions and also set out strict conditions for using taxpayer's money.