Croatian accession, 2012 budget, December summit on Brussels plenary

The crisis that has engulfed the eurozone shows no signs of abating and bolder measures are needed to restore market confidence, MEPs warned ahead of an EU summit 8-9 December in Brussels. They urged a more active role for the European Central Bank and the introduction of eurobonds during a debate Wednesday.

Polish Secretary of State for European affairs Mikołaj Dowgielewicz, speaking for the Council, said structural reform and fiscal consolidation must be continued. Summit decisions should be guided by three principles, he said: more unity, more Europe in the form of strengthened economic governance and strengthened EU institutions, essentially a bigger role for the Commission.

European Commission Vice-President Olli Rehn said the main priorities for 2012 are continued fiscal consolidation, a strengthened banking sector through recapitalisation and protecting the EU's financial stability. Commenting on changing the treaties, he explained that it wouldn't be a solution for the current crisis but could help the EU avoid future crises.

Socialist group leader Martin Schulz agreed that treaty revision won't restore confidence, because the eurozone cannot wait two years for changes to take effect. European leaders must decide if they want eurobonds or not and whether the ECB should be a lender of last resort or not, he said. "With common debt management and pooling of debt we can win back confidence."

Speaking on behalf of the centre-right EPP Paulo Rangel said that eurobonds, as well as the restoration of trust in the ECB and IMF are key. He said measures should be taken at an EU level, but also said national deficits must be brought down and budgetary balance established.

Liberal group leader Guy Verhofstadt noted that the financial press is warning that the endgame is approaching, not because of the Greek, Italian or Spanish situation, he said, but because the two main countries - Germany and France - are incapable of dealing with the crisis. "It's time for a eurobond market and fiscal union," he said

Rebecca Harms for the Greens also called for the introduction of eurobonds because the measures introduced so far have not worked.  Italy and Greece are in a death spiral, she said. The austerity measures in place make this inevitable.

Jan Zahradil for the ECR group warned that if eurozone countries really want to keep the euro, it may mean that they have to give up fiscal sovereignty. "Our group does not oppose the euro, it opposes the measures that are bad for it."

An increasing number of European countries are suffering because of the crisis and are experiencing the consequences of the financial market system, GUE/NGL group leader Lothar Bisky said, proposing the "rules of the game" are changed.  

EFD leader Bastiaan Belder warned that measures by the ECB and the introduction of eurobonds will only provide a temporary solution if underlying problems like high debt levels and weak competitiveness are not addressed.