Economic governance, Palestine on 26-29 September plenary agenda

We must not allow the achievement of a united Europe to be called into question, European Commission President José Manuel Barroso warned in his State of the Union address to MEPs Wednesday, pointing out that the horrors of the world wars of the previous century are now unimaginable, the EU being a guarantee of peace on the continent. MEPs largely supported Mr Barroso's view that more economic government and less intergovernmental bickering is the right response to the crisis. 

"Greece will remain a member of the euro area," Mr Barroso said, noting that a belief in a common currency without closer economic governance leading to economic union was an illusion. Should stability or growth take precedence? We need both, he said.

With European taxpayers having given €4.6 trillion in aid and guarantees to the financial sector, it is now time for the latter to make its contribution, Mr Barroso said. That is why the Commission is now proposing the introduction of a financial transaction tax, a long-standing demand of the Parliament, which is expected to generate €55 billion a year, and is also exploring the introduction of eurobonds.

He characterised youth unemployment as the most urgent social issue. As citizens we all gain through Europe, whether studying or working abroad, and that is why the Commission will not tolerate a rolling back of freedoms, such as free circulation of people, Mr Barroso promised. 

For the EPP Joseph Daul said problems arose because the euro was not equipped with the means to govern it and countries lived beyond their means for decades. The "six pack" is a step in the right direction but the EU should also focus on growth and invest in training, education and help smaller companies, he said. The only way out is through a common EU response, not agreements between governments, he added.

Socialist leader Martin Schulz agreed. "Challenges cannot be met by capitals acting alone, we have to act as community through the institutions. Pro-European groups are called to act together." He said the EU is in "a crisis of management and leadership" and called on governments to swiftly finalise rules for financial market regulation.

The crisis is not about Greece, but about the euro and the EU, Liberal leader Guy Verhofstadt said. "Are we able to stand united in this crisis," he said. The intergovernmental method is not working, the "only way out is a new transfer of powers to EU," he said, proposing the creation of an EU minister of finance. 

However, Jan Zahradil for the conservative ECR group said people don't like power moving from member states to the EU. The euro was imposed on economies that were too diverse, for political and ideological reasons, he said. "Maintaining the euro at any cost will destroy the euro." In addition, he warned that a financial transaction tax will cause businesses to leave EU.

EFD leader Nigel Farage also opposed the idea of giving more power to the EU and replacing national government by the community method. He said there are many presidents in the EU, many of them unelected by the populace. "When you take away any democratic accountability nobody is in charge," he said.

Greens leader Rebecca Harms said the economic governance package is a step in the right direction, but does not properly address the balance between stability and growth. We have to fight poverty, invest in education, training and sustainable economic growth otherwise there will be no backing from the majority of our citizens, she said.

Billions of euros were pumped in banks, and now people are footing the bill, working more for lower wages, where is social justice now, Lothar Bisky said for the GUE/NGL group. Solidarity is not just about handouts but also resisting obsessive budget cuts by the governments, he said.

For the Polish Presidency of the Council Mikołaj Dowgielewicz said the need to restore EU growth is a shared concern of the institutions. He called the vote on the six pack "a milestone on our way out of the debt crisis and towards more fiscal and economic control". He added, "the message here is: the community method works and the sceptics can be proven wrong."