Jeffrey Titford (IND/DEM). – Mr President, events seem to have overtaken this report. In spite of Commissioner Almunia’s comments, its upbeat projections for growth in the euro zone contrast sharply with the economic data released at the end of last week, which put growth in the French economy at zero. There are also signs of faltering growth across the euro zone, which will not be helped by the austere taxation regimes being introduced in Germany and Italy next year to meet the euro zone’s stability requirements.

What this report does not tell us is that the Government of Italy is on the brink of collapse because of Mr Prodi’s determination to introduce tax increases and budget cuts demanded by the European Commissioner for Economic Affairs to bring Italy into line with the Maastricht Treaty. It also does not mention the riots in Hungary following the Hungarian Prime Minister’s revelations that he had lied morning, noon and night about the tax increases and public spending that he had secretly promised that same Commissioner.

Forcing many of our new members of the EU to abide by deflationary policies designed for the more developed economies of the euro zone is generating weak demand, weak growth and mass unemployment. This report also fails to mention that the Maastricht Treaty has turned the Eastern Europeans into second-class citizens: they have no chance of joining the euro zone in the foreseeable future, while having to manage their economies in line with its requirements. Sooner or later the people of Europe are going to get restless with a system that keeps them permanently in the economic slow lane, while denying them any democratic say in how it should be run.