Procedure : 2009/2692(RSP)
Document stages in plenary
Document selected : B7-0356/2010

Texts tabled :

B7-0356/2010

Debates :

PV 16/06/2010 - 4
CRE 16/06/2010 - 4

Votes :

PV 16/06/2010 - 8.13

Texts adopted :

P7_TA(2010)0224

MOTION FOR A RESOLUTION
PDF 141kWORD 76k
See also joint motion for a resolution RC-B7-0349/2010
14.6.2010
PE441.938v01-00
 
B7-0356/2010

to wind up the debate on statements by the Council and Commission

pursuant to Rule 110(2) of the Rules of Procedure


on economic governance


Corien Wortmann-Kool, Othmar Karas, Jean-Paul Gauzès on behalf of the PPE Group

European Parliament resolution on economic governance  
B7‑0356/2010

The European Parliament,

–   having regard to statements by the European Council and Commission on the EU 2020 strategy,

–   having regard to Rule 110(2) of its Rules of Procedure,

A. whereas the EU 2020 strategy must push the economic growth and create competitiveness and jobs, with again growth GDP pushing industrial production and creating new employment,

B.  whereas the EU 2020 strategy should serve as a concrete programme for growth and employment in order to face the economic crisis,

C. whereas the Lisbon Strategy under performed due to a weak governance structure, lack of accountability and of a real EU framework, complex objectives with many targets,

D. whereas the current economic and financial crisis in certain Member States is due to the non respect of the rules of Growth and Stability Pact,

E.  whereas Member States should increase their economic performance by introducing structural reform reducing public expenditure, pushing economy, giving SMEs more possibility to develop and to have low-friendly approach considering that is the better way to help the economic growth and provide pour citizens with jobs,

F.  whereas speculative movements such as the massive trade in CDS on Greek sovereign debt can be directed against other vulnerable Member States (of the eurozone) at any moment, thus creating a default risk following complete market confidence which otherwise would not exist, and ultimately exposing the stability of the euro to an unacceptable risk,

1.  Welcomes the decision taken by the Council of a far reaching agreement to ensure the stability of euro and to install a new European Financial Stabilisation mechanism that consists on a comprehensive package;

2.  Welcomes the efforts made by Member States in order to reach a largely shared agreement on Greece, reminds that helping Greece in the form of loans to access to finance is part of a plan that can only work if Greece is effectively modernising its administrative and economic structure within a very short time-span;

3.  Urges the Commission to swiftly inform Parliament on its proposals for the rescue plans, especially as the EP is the EU’s budgetary authority;

4.  Is deeply worried about the deteriorating budgetary position most of the Member States and the possible knock-off effects on other Member States, especially within the eurozone;

5.  Lauds those Member States with strong efforts to overcome their balance of payments problems though radical reforms and making their economies more competitive on the international markets;

6.  Welcomes the Greek government’s wide-ranging plans to modernise the country, overcome structural rigidities, combat corruption, create a reliable statistical system, reduce the budget deficit, increase the efficiency of the tax-collecting system and review the structure of the public expenses; insists on Greece to deliver results as soon as possible;

7.  Welcomes the Commission proposal on EU 2020;

8.  Stresses that the recent events show that the eurozone is in need of bolder economic governance developed in the framework of a medium and long term EU strategy; stresses that a monetary instrument has to take into account the social-economic situation in order to be successful;

9.  Underlines as well that the Treaty’s mechanisms for budgetary and economic surveillance are not fully sufficient, the same applying to the present framework for collecting statistics; reminds that the monetary policy heavily relies on these mechanisms to function properly and reminds that without the ECB’s ability to focus on price stability the social-economic situation will deteriorate on the medium and long term;

10. Stresses the need for many countries to put their fiscal houses in order and reduce significantly their deficits and debt levels; agrees with the Council to ensure fiscal sustainability and enhanced economic growth in all Member States and therefore agrees that plans for fiscal consolidation and structural reforms has to be accelerated where warranted;

11. Acknowledges that the euro is under increasing threat as the Greek debt crisis spreads to other countries; urges the Commission to quickly develop the proposals outlined recently by Olli Rehn for strengthening the management of the eurozone in the medium and long term to avoid any repetition of the current currency crisis;

12. Urges to strengthen the provisions of the Stability and Growth Pact, especially its preventive arm, where the means of peer pressure are the strongest instrument presently available to make Member States comply with Council recommendations; urges the economic surveillance carried out by the Commission to get more teeth; considers that the possibility of creating incentives for fiscal consolidation has to be explored;

13. Underlines that the decision on compliance of Member States with the Stability and Growth Pact should be taken independently from the Council by the Commission in order to fully respect the SGP principles; it is foreseeable to create a constant financial audit based on common criteria decided on the proposal of the Commission;

14. Urges the Commission to include an enforced sanctioning mechanism in an automatic way (e.g. naming and shaming, withdrawing of voting power, reduced subsidies from structural funds and financial penalties) within the eurozone in order to force Member States to respect the rules of the Stability and Growth Pact;

15. Expresses its deep concern about the long-term sustainability of public finances in the aftermath of the financial and economic crises; recalls that the efforts made in the framework of the SGP prior to the crises were to a very high degree geared towards meeting the growing demographic challenge;

16. Calls on the Commission to consider the creation of a ‘European Monetary Fund’ to supplement the SGP in its task to monitor the budgetary positions of the Member states, to identify possible problems such as unsustainable public finances and possible balance of payment problems, to propose and enforce corrective actions, if necessary with appropriate sanction mechanisms, and to be able to intervene with the provision of loans in case of balance of payments problems; this would be a fund to which eurozone countries would contribute according to the size of their gross domestic product and through fines according to their excess debt and deficit; in principle any Member State could call on EMF funds up to the amount it has deposited in the past; loans given through that mechanisms would be subject to strict tailor-made reform programmes;

17. Asks the Commission to come up with a macro-economic impact assessment of the package of measures to preserve financial stability in the European Union and come up with a communication on the feasibility, the risks and advantages of issuing Eurobonds;

18. Asks for a timely implementation of the Credit Rating Agencies Regulation; reminds that they will be supervised by the ESMA authority once the Supervisory Package is adopted and demands the European Commission to put forward proposals to tackle the oligopolistic structure of sovereign debt ratings;

19. Considers that reducing tax fraud levels would help to reduce public deficits without increasing taxes while maintaining social spending; is concerned about the distortion created in the single market due to the different levels of tax fraud in the Member States; asks the Commission to elaborate an impact assessment to evaluate the different problems provoked by tax evasion and black economy in all Member States;

20. Urges the European Council to adapt its EU 2020 strategy taking into account the recent decisions and to postpone its adoption to second half of the year; stresses that it should the EP’s view before any final decision one the modified text is made;

Strengthening of Europe 2020 governance structure necessary

21. Stresses that the open method of coordination has failed and should be replaced by binding measures; Urges Council and Commission to come forward with an economic strategy for economic recovery based primarily on EU instruments and not mainly on intergovernmental initiatives;

22. Believes that real economic governance implies to give to the Commission a proper and stronger responsibility of management enabling it to use existing tools and tools newly provided for by the Lisbon Treaty such as Articles 121, 122, 136, 172, 173 and 194 which confer to the Commission the task of coordinating reform plans, actions as well as establishing a common strategy;

23. Takes the view that the Broad Economic Policy Guidelines (BEPGs) and the country specific recommendations will need to be detailed enough to have a real effect; Stresses the importance of a stronger link between the instruments of the Stability and Growth Pact macro economic instruments and the EU 2020 National Reform Programmes by presenting them in coherent way time-wise and including enhanced comparability of national budgets as regards spending in different categories; the Member states not only have considered their economic policy as a matter of common interest, but they have to coordinate them in a way that they do not cancel out each other; reminds of the enhanced role of the Broad Economic Policy Guidelines;

24. Urges the European Council and the Commission to establish a ‘carrot and stick’ approach and use compliance mechanisms in the framework of the Article 136 of the Treaty, such as economic incentives, (e.g. as extra EU funds), as well as sanctions aiming at supporting an enhanced EU economic governance and more specifically an enhanced governance of the EU 2020 strategy;

25. Considers that the powers of EUROSTAT should be enhanced, including investigative powers conferred to EUROSTAT; considers that open and transparent statistical information should be a precondition for accessing structural funds; Commission must take the responsibility to evaluate the statistic in order to decide if a Member State complies with requested obligation and assessment;

26. Calls on the Commission to undertake constructive compromise with the Parliament to achieve a single reading agreement on the new supervisory framework that will allow the new European Supervisory Authorities (ESA) to be fully operational on 1 January 2011; among other things the role of derivatives markets and temporarily prohibit or restrict certain types of transactions that threaten the orderly functioning and integrity of financial markets or the stability of the whole or part of the financial system in the Union;

Enhanced role for the European Parliament

27. Expects Council and Commission to consult Parliament on the Broad Economic Policy Guidelines (BEPGs); believes that the BEPGs should focus on policy recommendations tackling both macro and microeconomic developments in the Union at large and the individual Member States and that special attention should be given to growth enhancing structural reforms over the medium and long-term;

28. Recalls that Parliament has to be properly consulted on the Employment Guidelines; recalls that Parliament will take its decision on the Employment Guidelines only after having got satisfaction on the governance and budgetary framework of the EU 2020 strategy;

29. Regrets that Parliament as representative of the citizens of Europe is not consulted on the indicators that are the basis of the EU 2020 National Reform Programme; ask the Council to postpone their decision and to consult first with Parliament;

30. Stresses that the annual policy recommendations and warnings from the Commission regarding compliance of the Member States with the EU 2020 objectives should be the basis for European Council decisions; Parliament should be properly consulted on these reports before the European Council discussions;

31. Requests further information on the consequences of the European Financial Stabilisation Mechanism decided on the Extraordinary Ecofin Council on 9-10 May 2010 on the budget of the EU;

32. MFF: Underlines the importance of the revision of the current multi-annual financial framework (MFF) to comply with the conclusions of the European Council of 15-16 December 2005 and bring it into line with the requirements of the Lisbon Treaty in order to provide financing for the initiatives outlined in the EU 2020 strategy as well as the various initiatives and political commitments which were taken during the current and next MFF;

33. In principle welcomes the overall direction of the Draft Budget 2011, but is concerned about the tight margins in the different headings and that it does therefore not sufficiently reflect current social and economic challenges to turn the Union into a smart, sustainable and inclusive knowledge-based economy;

34. Stresses that it is impossible to identify clearly, from a budgetary point of view, the financial implications of the EU 2020 strategy of the exact budget lines that are covered by the new flagship initiatives; expresses its commitment, however, to actively work to this direction already in the framework of the 2011 Budget, in order to ensure at this stage an adequate financing of the EU 2020 strategy;

35. Instructs its President to forward this resolution to the European Council and the Commission.

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