European Parliament decision of 20 October 2010 on the adaptation of Parliament's Rules of Procedure to the revised framework agreement on relations between the European Parliament and the European Commission (2010/2127(REG))

P7_TA(2010)0367 A7-0278/2010

The European Parliament,

–  having regard to Rules 127, 211 and 212 of its Rules of Procedure,

–  having regard to its decision of 20 October 2010 on the revision of the framework agreement on relations between the European Parliament and the European Commission(1),

–  having regard to the report of the Committee on Constitutional Affairs (A7-0278/2010),

1.  Decides to amend its Rules of Procedure as shown below;

2.  Points out that the amendments will enter into force on the first day after the entry into force of the revised framework agreement;

3.  Instructs its President to forward this decision to the Council and the Commission, for information.

Present text   Amendment Amendment 1 Parliament's Rules of Procedure Rule 9 – paragraph 2 2.  Members' conduct shall be characterised by mutual respect, be based on the values and principles laid down in the basic texts on which the European Union is founded, respect the dignity of Parliament and not compromise the smooth conduct of parliamentary business or disturb the peace and quiet of any of Parliament's premises. 2.  Members' conduct shall be characterised by mutual respect, be based on the values and principles laid down in the basic texts on which the European Union is founded, respect the dignity of Parliament and not compromise the smooth conduct of parliamentary business or disturb the peace and quiet of any of Parliament's premises. Members shall comply with Parliament's rules on the treatment of confidential information. Failure to comply with those standards may lead to application of the measures provided for in Rules 152, 153 and 154. Failure to comply with those standards and rules may lead to application of measures in accordance with Rules 152, 153 and 154. Amendment 2 Parliament's Rules of Procedure Rule 23 – paragraph 11 a (new) 11a.  The Bureau shall lay down rules concerning the treatment of confidential information by Parliament and its bodies, office-holders and other Members, taking into account any interinstitutional agreement concluded on such matters. Those rules shall be published in the Official Journal of the European Union and annexed to these Rules of Procedure. (Annex VIII – part A – paragraph 1 – subparagraph 4 shall be deleted) Amendment 3 Parliament's Rules of Procedure Rule 35 The Commission's legislative and work programme The Commission Work Programme 1.  Parliament shall work together with the Commission and the Council to determine the legislative planning of the European Union. 1.  Parliament shall work together with the Commission and the Council to determine the legislative planning of the European Union. Parliament and the Commission shall cooperate in preparing the Commission's annual legislative and work programme in accordance with the timetable and arrangements agreed between the two institutions and annexed to these Rules of Procedure. Parliament and the Commission shall cooperate in preparing the Commission Work Programme – which is the Commission's contribution to the Union's annual and multiannual programming – in accordance with the timetable and arrangements agreed between the two institutions and annexed to these Rules of Procedure. 2.  In urgent and unforeseen circumstances, an institution may, on its own initiative and in accordance with the procedures laid down in the Treaties, propose adding a legislative measure to those proposed in the annual legislative and work programme. 2.  In urgent and unforeseen circumstances, an institution may, on its own initiative and in accordance with the procedures laid down in the Treaties, propose adding a legislative measure to those proposed in the Commission Work Programme. 3.  The President shall forward the resolution adopted by Parliament to the other institutions which participate in the European Union's legislative procedure and to the parliaments of the Member States. 3.  The President shall forward the resolution adopted by Parliament to the other institutions which participate in the European Union's legislative procedure and to the parliaments of the Member States. The President shall ask the Council to express an opinion on the Commission's annual legislative and work programme and on Parliament's resolution. The President shall ask the Council to express an opinion on the Commission Work Programme and on Parliament's resolution. 4.  Where an institution is unable to comply with the timetable laid down it is required to notify the other institutions as to the reasons for the delay and to propose a new timetable. 4.  Where an institution is unable to comply with the timetable laid down it is required to notify the other institutions as to the reasons for the delay and to propose a new timetable. Amendment 4 Parliament's Rules of Procedure Rule 43 – paragraph 1 – subparagraph 3 In cases where a proposal is listed in the Annual Legislative Programme the committee responsible may decide to appoint a rapporteur to follow the preparatory phase of the proposal. In cases where a proposal is listed in the Commission Work Programme the committee responsible may decide to appoint a rapporteur to follow the preparatory phase of the proposal. Amendment 5 Parliament's Rules of Procedure Rule 44 – paragraph 3 3.  Before the committee responsible proceeds to the vote, it shall ask the Commission whether it has prepared a position on the initiative and if so request the Commission to state its position to the committee. 3.  Before the committee responsible proceeds to the vote, it shall ask the Commission whether it is preparing an opinion on the initiative. In the affirmative, the committee shall not adopt its report before receiving the Commission's opinion. Amendment 6 Parliament's Rules of Procedure Rule 45 – paragraph 2 2.  Following a decision on the procedure to be followed, and if Rule 46 does not apply, the committee shall appoint a rapporteur on the proposal for a legislative act from among its members or permanent substitutes if it has not yet done so on the basis of the annual legislative and work programme agreed under Rule 35. 2.  Following a decision on the procedure to be followed, and if Rule 46 does not apply, the committee shall appoint a rapporteur on the proposal for a legislative act from among its members or permanent substitutes if it has not yet done so on the basis of the Commission Work Programme agreed under Rule 35. Amendment 7 Parliament's Rules of Procedure Rule 90 – paragraph 1 1.  When it is intended to open negotiations on the conclusion, renewal or amendment of an international agreement, including agreements in specific areas such as monetary affairs or trade, the committee responsible may decide to draw up a report or otherwise monitor the procedure and inform the Conference of Committee Chairs of that decision. Where appropriate, other committees may be asked for an opinion pursuant to Rule 49(1). Rules 188(2), 50 or 51 shall apply where appropriate. 1.  When it is intended to open negotiations on the conclusion, renewal or amendment of an international agreement, the committee responsible may decide to draw up a report or otherwise monitor the procedure and inform the Conference of Committee Chairs of that decision. Where appropriate, other committees may be asked for an opinion pursuant to Rule 49(1). Rules 188(2), 50 or 51 shall apply where appropriate. The Chairs and rapporteurs of the committee responsible and of any associated committees shall jointly take appropriate action to ensure that the Commission provides Parliament with full information about the recommendations for a negotiating mandate, if necessary on a confidential basis, and with the information referred to in paragraphs 3 and 4. The Chairs and rapporteurs of the committee responsible and of any associated committees shall jointly take appropriate action to ensure that Parliament is provided with immediate, regular and full information, if necessary on a confidential basis, at all stages of the negotiation and conclusion of international agreements, including the draft and the finally adopted text of negotiating directives, and with the information referred to in paragraph 3, – by the Commission in accordance with its obligations under the Treaty on the Functioning of the European Union and its commitments under the Framework Agreement on relations between the European Parliament and the European Commission, and – by the Council in accordance with its obligations under the Treaty on the Functioning of the European Union. Amendment 8 Parliament's Rules of Procedure Rule 90 – paragraph 4 4.  Throughout the negotiations the Commission and the Council shall inform the committee responsible regularly and fully of their progress, if necessary on a confidential basis. deleted Amendment 9 Parliament's Rules of Procedure Rule 91 Where the Commission and/or the Council are under an obligation to inform Parliament immediately and fully, in accordance with Article 218(10) of the Treaty on the Functioning of the European Union, a statement shall be made in Parliament, followed by a debate. Parliament may issue recommendations pursuant to Rule 90 or 97. Where the Commission, in accordance with its obligations under the Treaty on the Functioning of the European Union and the Framework Agreement on relations between the European Parliament and the European Commission, informs Parliament and the Council of its intention to propose the provisional application or suspension of an international agreement, a statement shall be made in Parliament, followed by a debate. Parliament may issue recommendations pursuant to Rule 90 or 97. The same procedure shall apply when the Commission informs Parliament of a proposal concerning the positions to be adopted on the Union's behalf in a body set up by an international agreement. Amendment 10 Parliament's Rules of Procedure Rule 137 – paragraph 1 – subparagraph 1 1.  Before each part-session the draft agenda shall be drawn up by the Conference of Presidents on the basis of recommendations by the Conference of Committee Chairs taking into account the agreed annual legislative and work programme referred to in Rule 35. 1.  Before each part-session the draft agenda shall be drawn up by the Conference of Presidents on the basis of recommendations by the Conference of Committee Chairs taking into account the agreed Commission Work Programme referred to in Rule 35. Amendment 11 Parliament's Rules of Procedure Rule 193 – paragraph 2 – interpretation subparagraph 3 a (new) Provisions of this paragraph shall be interpreted in accordance with the paragraph 50 of the Framework Agreement on relations between the European Parliament and the European Commission. Amendment 12 Parliament's Rules of Procedure Annex II – part A – paragraph 3 3.  A question shall be inadmissible if an identical or similar question has been put down and answered during the preceding three months unless there are new developments or the author is seeking further information. In the first case a copy of the question and the answer shall be given to the author. 3.  A question shall be inadmissible if an identical or similar question has been put down and answered during the preceding three months, or to the extent that it merely seeks information on the follow-up to a specific resolution of Parliament of a kind which the Commission has already provided in a written follow-up communication, unless there are new developments or the author is seeking further information. In the first case a copy of the question and the answer shall be given to the author. Amendment 13 Parliament's Rules of Procedure Annex III – paragraph 3 3.  If an identical or similar question has been put and answered during the preceding six months, the Secretariat shall transmit a copy of the previous question and answer to the author. The renewed question shall not be forwarded to the addressee unless the author invokes new significant developments or is seeking further information. 3.  If an identical or similar question has been put and answered during the preceding six months, or to the extent that a question merely seeks information on the follow-up to a specific resolution of Parliament of a kind which the Commission has already provided in a written follow-up communication, the Secretariat shall transmit a copy of the previous question and answer to the author. The renewed question shall not be forwarded to the addressee unless the author invokes new significant developments or is seeking further information. Amendment 14 Parliament's Rules of Procedure Annex VIII – part A – paragraph 5 5.  Penalties: In cases of infringement, the chair of the committee shall, after consulting the vice-chairs, lay down in a reasoned decision the penalties to be applied (reprimand, exclusion from the committee for a shorter or longer period or permanently). 5.  Penalties: In cases of infringement, the chair of the committee shall proceed in accordance with Rules 9(2), 152, 153 and 154. The member concerned may lodge an appeal without suspensory effect against this decision. This appeal shall be considered jointly by the Conference of Presidents of the European Parliament and the bureau of the committee concerned. Their majority decision shall be final. If it is proved that an official has failed to respect confidentiality, the penalties for which the Staff Regulations provide shall apply.

(1) Texts adopted, P7_TA(2010)0366.

European Parliament legislative resolution of 20 October 2010 on the proposal for a regulation of the European Parliament and of the Council amending Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities, as regards the European External Action Service (COM(2010)0085 – C7-0086/2010 – 2010/0054(COD))

P7_TA(2010)0368 A7-0263/2010

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to the European Parliament and the Council (COM(2010)0085),

–  having regard to Article 294(2) and Article 322 of the Treaty on the Functioning of the European Union as well as Article 106a of the Treaty establishing the European Atomic Energy Community, pursuant to which the Commission submitted the proposal to Parliament (C7-0086/2010),

–  having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

–  having regard to the opinion of the Court of Auditors of 29 April 2010(1),

–  having regard to the undertaking given by the Council representative by letter of 13 October 2010 to approve Parliament's position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

–  having regard to Rule 55 of its Rules of Procedure,

–  having regard to the joint deliberations of the Committee on Budgets and of the Committee on Budgetary Control pursuant to Rule 51 of its Rules of Procedure,

–  having regard to the report of the Committee on Budgets and of the Committee on Budgetary Control and the opinions of the Committee on Foreign Affairs, Committee on Development, Committee on International Trade and of the Committee on Constitutional Affairs (A7-0263/2010),

1.  Adopts its position at first reading hereinafter set out;

2.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Position of the European Parliament adopted at first reading on 20 October 2010 with a view to the adoption of Regulation (EU, Euratom) No .../2010 of the European Parliament and of the Council amending Council Regulation (EC, Euratom) No 1605/2002 on the Financial Regulation applicable to the general budget of the European Communities, as regards the European External Action Service

(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU, Euratom) No 1081/2010.)

ANNEX

Commission declaration

The Commission will address the issue of the European Development Fund instrument with a view to integrate it in the Union budget in the framework of its proposals relating to the next multiannual financial framework.

(1) OJ C 145, 3.6.2010, p. 4.

European Parliament legislative resolution of 20 October 2010 on the proposal for a regulation of the European Parliament and of the Council amending the Staff Regulations of Officials of the European Communities and the Conditions of Employment of Other Servants of those Communities (COM(2010)0309 – C7-0146/2010 – 2010/0171(COD))

P7_TA(2010)0369 A7-0288/2010

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2010)0309),

–  having regard to Article 294(2) and Article 336 of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C7-0146/2010),

–  having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

–  having regard to Council Decision 2010/427/EU of 26 July 2010 establishing the organisation and functioning of the European External Action Service(1),

–  having regard to the undertaking given by the Council representative by letter of 20 October 2010 to approve Parliament's position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

–  having regard to Rule 55 of its Rules of Procedure,

–  having regard to the report of the Committee on Legal Affairs and the opinions of the Committee on Foreign Affairs, the Committee on Development, the Committee on Budgets and the Committee on Budgetary Control (A7-0288/2010),

1.  Adopts its position at first reading hereinafter set out;

2.  Takes note of the statements of the Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy and the statement of the Commission annexed to this resolution;

3.  Calls on the Commission to refer the matter to Parliament again if it intends to amend its proposal substantially or replace it with another text;

4.  Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Position of the European Parliament adopted at first reading on 20 October 2010 with a view to the adoption of Regulation (EU, Euratom) No .../2010 of the European Parliament and of the Council amending the Staff Regulations of Officials of the European Communities and the Conditions of Employment of Other Servants of those Communities

(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Regulation (EU, Euratom) No 1080/2010.)

ANNEX

Statement from the High Representative on geographical balance in the EEAS

The High Representative attaches the highest importance to the recruitment on the broadest possible geographical basis from among the nationals of the Member States of the Union, as well as to ensuring an appropriate and meaningful presence of nationals from all Member States in the Service.

The EEAS should profit fully from the diversity and wealth of experience and expertise developed in the various Foreign Services in the Union.

The High Representative will use all the possibilities offered in the application of the EEAS appointment procedure to achieve these objectives. She will dedicate a section on the issue in her yearly report on the occupation of posts in the EEAS.

Statement from the High Representative on gender balance in the EEAS

The High Representative attaches the highest importance to the promotion of gender balance in the staffing of the EEAS.

A key to the promotion of gender balance is the encouragement of applications from women for posts in the EEAS and the removal of barriers in this respect. On the basis of the experience of the appointment procedure for the 2010 rotation of Heads of Delegation, the EEAS will examine how to take the often non-linear patterns of female application better into account in future appointment procedures and how to remove other possible obstacles. The High Representative will also identify best practices from national diplomatic services and apply them whenever possible to the EEAS.

The High Representative will make full use of all the possibilities offered by Article 1d(2) and (3) of the Staff Regulations in promoting the employment of women in the Service.

The High Representative will dedicate a section on the issue of gender balance in her yearly report on the occupation of posts in the EEAS.

Statement by the Commission with regard to Article 95(2) of the Staff Regulations

The Commission will duly motivate vis-à-vis the High Representative any negative opinion it might express concerning a person on the list of candidates.

(1) OJ L 201, 3.8.2010, p. 30.

European Parliament resolution of 20 October 2010 on Council's position on Draft amending budget No 6/2010 of the European Union for the financial year 2010, Section II - European Council and Council; Section III - Commission; Section X - European External Action Service (13475/2010 – C7-0262/2010 – 2010/2094(BUD))

P7_TA(2010)0370 A7-0283/2010

The European Parliament,

–  having regard to the Treaty on the Functioning of the European Union and in particular Article 314 thereof and to the Treaty establishing the European Atomic Energy Community, and in particular Article 106a thereof,

–  having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities(1), and particularly Articles 37 and 38 thereof,

–  having regard to the general budget of the European Union for the financial year 2010, as finally adopted on 17 December 2009(2),

–  having regard to the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management(3),

–  having regard to Draft amending budget No 6/2010 of the European Union for the financial year 2010, which the Commission presented on 17 June 2010 (COM(2010)0315),

–  having regard to Council's position on Draft amending budget No 6/2010, which the Council established on 13 September 2010 (13475/2010 – C7-0262/2010),

–  having regard to Rules 75b and 75e of its Rules of Procedure,

–  having regard to the report of the Committee on Budgets (A7-0283/2010),

A.  whereas this Amending budget is the third and final piece of a set of legislation necessary to implement the political agreement and subsequent Council Decision establishing the European External Action Service (EEAS), the other two being a modification of the Financial Regulation and a modification of the Staff Regulation,

B.  whereas the establishment of the EEAS has to be guided by the principles of cost efficiency, budget neutrality, and sound and efficient management while fully taking into account the impact of the economic crisis in public finances and the need for budgetary stringency,

C.  whereas, also, every effort must be made to ensure that any overlapping and potential conflicts of competencies are avoided, especially as this would not only lead to less effective external policies but, also, to ineffective use of scarce budgetary resources,

D.  whereas the needs for 2011 are covered by an Amending Letter 1/2010 to the 2011 budget and will be incorporated into the general budget procedure for that year,

E.  whereas the bulk of resources necessary will simply be transferred from the Sections of the European Council and Council and the Commission, but a limited amount of new resources is also being requested in terms of staff and contract staff,

F.  whereas this Draft amending budget No 6/2010 will formally enter this budgetary adjustment into the 2010 budget, including the creation of a new and separate Section X, which is part of the political agreement,

G.  whereas the rights of Parliament as concerns budget discharge must be safeguarded,

H.  whereas it should be recalled, once again, that it is crucial for the EU to be able to operate the full range of its external instruments under a coherent structure, and whereas the provision of 2010 budgetary resources to set up such a structure, in its initial phase, is the political purpose of this resolution,

I.  whereas the Council adopted its position on 13 September 2010,

1.  Takes note of Draft amending budget No 6/2010;

2.  Approves Council's position on Draft amending budget No 6/2010 unamended and instructs its President to declare that Amending budget No 6/2010 has been definitively adopted and to arrange for its publication in the Official Journal of the European Union;

3.  Instructs its President to forward this resolution to the Council and the Commission, and also to the other institutions and bodies concerned.

(1) OJ L 248, 16.9.2002, p. 1. (2) OJ L 64, 12.3.2010. (3) OJ C 139, 14.6.2006, p. 1.

European Parliament resolution of 20 October 2010 on Council's position on Draft amending budget No 3/2010 of the European Union for the financial year 2010, Section III – Commission (13472/2010 – C7-0263/2010 – 2010/2048(BUD))

P7_TA(2010)0371 A7-0281/2010

The European Parliament,

–  having regard to the Treaty on the Functioning of the European Union and in particular Articles 310 and 314 thereof and to the Treaty establishing the European Atomic Energy Community and in particular Article 106a thereof,

–  having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities(1), and particularly Article 37 thereof,

–  having regard to the general budget of the European Union for the financial year 2010, as finally adopted on 17 December 2009(2),

–  having regard to the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management(3),

–  having regard to Draft amending budget No 3/2010 of the European Union for the financial year 2010, which the Commission presented on 8 April 2010 (COM(2010)0149),

–  having regard to the proposal for a Decision of the European Parliament and of the Council on the Mobilisation of the Flexibility Instrument, which the Commission presented on 8 April 2010 (COM (2010)0150),

–  having regard to the proposal for a Regulation of the European Parliament and of the Council amending Regulation (EC) No 1905/2006 establishing a financing instrument for development cooperation, which the Commission presented on 17 March 2010 (COM(2010)0102),

–  having regard to Council's position on Draft amending budget No 3/2010, which the Council established on 13 September 2010 (13472/2010 – C7-0263/2010),

–  having regard to Rule 75b of its Rules of Procedure,

–  having regard to the report of the Committee on Budgets (A7-0281/2010),

A.  whereas the Commission proposes to amend Regulation (EC) No 1905/2006 of the European Parliament and of the Council(4) in order to allow the financing of Bananas Accompanying Measures (BAM) over the years 2010 to 2013, with an overall budget of EUR 190 million, with a potential supplementary EUR 10 million, if margins allow,

B.  whereas the proposed annual breakdown of the financial assistance for BAM foresees an amount of EUR 75 million in 2010,

C.  whereas the margin available under heading 4 is only EUR 875 530, due to the need to finance to the greatest extent, in 2010, EU's priorities in its role as a global player,

D.  whereas the major part of this financial assistance in 2010 stems from redeployment within heading 4 of the budget (EUR 55,8 million out of EUR 75 million),

E.  whereas the proposed redeployment affects instruments and actions that the EU and particularly the European Parliament have defined as being of great interest,

F.  whereas the need for financial assistance to BAM was not foreseen when adopting the current Multiannual Financial Framework,

G.  whereas the past budgetary procedures have illustrated the extreme pressure this heading has been under,

H.  whereas the EU financial assistance to ACP banana supplying countries, affected by the Most Favoured Nation liberalisation in the framework of the WTO, should not be questioned and the budgetary effort should not be delayed,

I.  whereas, in substance, Parliament is ready, in conciliation, to negotiate with the other branch of the budgetary authority,

J.  whereas the remaining margin of EUR 875 530 could be used for the financing of BAM,

1.  Takes note of Draft amending budget No 3/2010 and of Council's Position;

2.  Recalls its principle position that new priorities should be financed by new funds;

3.  Considers that the financing of BAM fulfils the conditions provided for in point 27 of the IIA of 17 May 2006 on the use of the Flexibility Instrument;

4.  Calls on the Commission to present a new proposal for the mobilisation of the Flexibility Instrument for the remaining part of EUR 74 124 470;

5.  Has decided to amend Council's position on Draft amending budget No 3/2010 as set out below;

6.  Instructs its President to forward this resolution, together with the amendment, to the Council and the Commission.

Amendment 1

SECTION III: Commission

NOMENCLATURE:

Unchanged

REMARKS:

Unchanged

JUSTIFICATION

See the resolution adopted by the Parliament on the Council's position.

(1) OJ L 248, 16.9.2002, p. 1. (2) OJ L 64, 12.3.2010. (3) OJ C 139, 14.6.2006, p. 1. (4) OJ L 378, 27.12.2006, p. 41.

European Parliament resolution of 20 October 2010 on Council's position on draft general budget of the European Union for the financial year 2011 – all sections (12699/2010 – C7-0202/2010 – 2010/2001(BUD))

P7_TA(2010)0372 A7-0284/2010

The European Parliament,

–  having regard to Article 314 of the Treaty on the Functioning of the European Union and to Article 106a of the Treaty establishing the European Atomic Energy Community,

–  having regard to Council Decision 2007/436/EC, Euratom of 7 June 2007 on the system of the European Communities' own resources(1),

–  having regard to Council Regulation (EC, Euratom) No 1605/2002 of 25 June 2002 on the Financial Regulation applicable to the general budget of the European Communities(2),

–  having regard to the Interinstitutional Agreement of 17 May 2006 between the European Parliament, the Council and the Commission on budgetary discipline and sound financial management(3),

–  having regard to its resolution of 25 March 2010 on priorities for the 2011 budget - Section III - Commission(4),

–  having regard to its resolution of 15 June 2010 on mandate for the trilogue on the 2011 draft budget(5),

–  having regard to the Draft general budget of the European Union for the financial year 2011 which the Commission presented on 27 April 2010 (COM(2010)0300),

–  having regard to the Position on the Draft budget of the European Union adopted by the Council on 12 August 2010 (12699/2010 - C7-0202/2010),

–  having regard to Letter of Amendment No 1/2011 to the Draft general Budget of the European Union for the financial year 2011 presented by the Commission on 15 September 2010,

–  having regard to Rule 75b of its Rules of Procedure,

–  having regard to the report of the Committee on Budgets and the opinions of the other committees concerned (A7-0284/2010),

SECTION III
Key issues and priorities for the 2011 budget

1.  Is firmly convinced that the budgetary procedure under the new Treaty on the Functioning of the European Union (TFEU) requires full and high-level political involvement of all institutions concerned; underlines that the conciliation procedure aims at reconciling the views of both branches of the budgetary authority and that the Joint Text on Budget 2011 will still have to be approved by both branches according to their own rules and Article 314(7) TFEU;

2.  Considers the written procedure for the adoption of the Council's position to be particularly inappropriate for the budgetary procedure, and questionable in the absence of public and clear political endorsement by the Council at ministerial level of an essential piece of EU legislation;

3.  Is moreover rather concerned about how to assess Council's position on Draft budget (DB) 2011 since the cuts adopted do not correspond to clearly defined objectives and seem, on the contrary, to be distributed randomly and radically throughout the whole budget; considers arbitrary reductions in appropriations not to be in line with sound budgeting;

4.  Considers that following the entry into force of the TFEU, which strengthens EU policies and creates new fields of competence – notably Common Foreign and Security Policy, competitiveness and innovation, space, energy policy, tourism, the fight against climate change, sport and youth, social policy, justice and home affairs – and which implies a ‘lisbonisation’ of the budget, the European Union should be endowed with the necessary financial means to attain its objectives and therefore requires both branches of the budgetary authority to be coherent and consistent as regards increased financial capacities;

5.  Recalls that, despite consecutive Treaty changes and increased responsibilities transferred at Union level, the EU budget amounts to a modest 1% of GNI; opposes consequently the severe cuts adopted by the Council;

6.  Understands the concern expressed by some delegations in the Council that the pressures on Member States' budgets are particularly heavy for the financial year 2011 and that savings are all the more necessary, but nevertheless considers arbitrary reductions in payments appropriations not to be in line with sound budgeting considers moreover that arbitrary reductions in commitments appropriations jeopardise the implementation of Union policies and programmes already agreed;

7.  Reminds both the Council and the Commission, moreover, of its resolution of 29 March 2007 on the future of the European Union's own resources(6) in which Parliament underlined that the current system of EU own resources - where 70 % of the Union's revenue comes directly from national budgets - results in the contribution to the European Union being perceived as an additional burden on national budgets; is deeply convinced that all EU institutions should agree on a clear and binding timetable in order to agree on a new system of own resources before the entry into force of the next post-2013 MFF; expresses its willingness to explore all possible avenues in that respect;

8.  Recalls, once more, that the EU budget should in no way be perceived and evaluated as a simple financial item added as a burden to national budgets but, on the contrary, is to be understood as an opportunity to gear up those initiatives and investments that are of interest and of added value to the EU as a whole, most of them co-decided by Parliament and the Council and thus legitimised also at national level; calls on the EU institutions to define a proper mechanism to evaluate and assess the ‘cost of non Europe’ which would highlight the savings in national budgets generated by the pooling of resources;

9.  Reiterates that the complementary nature of the EU budget to national budgets and the impetus it creates should not be checked and curbed by arbitrary reductions that represent an infinitesimal share (less than 0,02%) compared to cumulated budgets of the 27 Member States;

10.  Recalls that youth-, education- and mobility-related policies have been identified by Parliament as one of its most important priorities, among others as mentioned in Parliament's resolution for the mandate of the trilogue, adopted in June 2010, for the 2011 budget since they are essential and necessary parts of the EU strategy for the economic recovery and the Europe 2020 strategy; emphasises that the proposed increase in appropriations for a selected number of budget items serves both short- and long-term strategies for the future of the EU;

11.  Reiterates its firm conviction that, in a context of scarce funds and global economic slowdown, the financing of EU policies should be closely monitored in order to avoid any expenditure which is not driven by a clear and identifiable objective, bearing in mind the European added value of the EU budget, since it is an expression of solidarity and efficiency by pooling together financial resources otherwise dispersed at national, regional and local level; emphasises as well that an overwhelming part of EU budget expenditures supports long-term investments necessary to stimulate EU economic growth;

12.  Points out that the margins stemming from the Multiannual Financial Framework (MFF) do not allow real room for manoeuvre, especially in subheadings 1a and 3b and heading 4, and reduce the capacity of the EU to react to policy changes and unforeseen needs while maintaining its priorities; points out that the scope of the challenges the EU faces, would require means well beyond the current ceilings of the MFF; recalls, in that respect, that a substantial budget review is absolutely needed and that an immediate revision of the ceilings of the current MFF as well as some provisions of the Interinstitutional Agreement (IIA) of 17 May 2006 on budgetary discipline and sound financial management has been rendered unavoidable by the various challenges and new priorities that have arisen;

13.  Urges the Council to take full account of the clear conditions set out in its resolution of 22 September 2010 on the proposal for a Council regulation laying down the multiannual financial framework for the years 2007-2013 (COM(2010)0072 - 2010/0048(APP))(7) on the basis of which Parliament will give its consent to the new MFF regulation, as provided for by the TFEU;

14.  Recalls that the financing of its priorities and of the new policies stemming from the entry into force of the TFEU is rendered impossible by the ceilings of the MFF; stresses that, in order to ease the negotiation on the 2011 budget within the Conciliation Committee, it has, at the price of severe compromises, proposed the financing of these policies within the ceilings; points out, nevertheless, that this can only be managed through the decrease of appropriations on other, specific and carefully chosen, budget lines;

15.  Strongly support the creation of a guarantee fund in the EU budget linked to the European Financial Stabilisation Mechanism; insists that both arms of the budgetary authority be involved in decisions concerning the activation of this mechanism; requests that any possible budgetary needs linked to this mechanism should be financed through an ad-hoc revision of the current MFF 2007-13 or the IIA of 17 May 2006 to ensure that sufficient involvement of the budgetary authority is guaranteed on time;

16.  As regards payment appropriations, refuses to consider an overall figure of the Council's position as a final target arrived at by decreasing or increasing expenditure on different lines without in-depth assessments of the real needs;

17.  Recalls that this practice of the Council may impact on the execution rate for commitments for the same year, by slowing down the rate of signing new contracts, especially in the final quarter, therefore disturbing multiannual life cycles of the EU programmes;

18.  Takes the general position that administrative expenditure supporting EU programmes should not be cut, as a matter of guaranteeing the swift implementation of the latter as well as its quality and adequate monitoring; therefore restores all of the Council's cuts in respect of the administrative management lines of those programmes;

On sub-heading 1a

19.  Recalls that, as EP horizontal priorities for the 2011 budget, youth, education and mobility require, under the various policies, cross-sectoral targeted investment as a means to foster EU growth and development; states, therefore, its will to increase appropriations for all Programmes related to those priorities, namely Lifelong Learning, People and Erasmus Mundus;

20.  Considers, in particular, that youth employment mobility is a key instrument to ensure the development of a competitive and dynamic job market in Europe and, as such, needs to be boosted; is therefore in favour of increasing appropriations for the European Employment Service and strongly supports to this end the launch of the Preparatory action ‘Your first EURES Job’, which aims to help young people enter the job market or access specialised jobs in another Member State, as a first step towards a specific non-academic youth mobility programme;

21.  Acknowledges the added value represented by EU-financed research which creates a momentum among separate national efforts and investments in the field of research, and especially research related to energy, including the field of renewable energy, and the central role played by SMEs in European growth and employment rate; reiterates accordingly its support to the Competitiveness and Innovation Framework programme and especially the Entrepreneurship & Innovation and Intelligent Energy programmes, by increasing commitment and payment appropriations on a selected number of lines; notes that the smooth implementation of the R&D programmes should be guaranteed in order to avoid the transfer of the appropriations at the end of the budgetary period away from their intended use;

22.  Is extremely concerned by the insufficiency of resources available for the financing of policies at the core of competitiveness for growth and employment and by the worsening of this situation due to the upcoming financing of the Europe 2020 strategy; recalls that investment in policies such as education, research, innovation, transport (in particular TEN-Ts) and tourism has a crucial role to play in driving forward growth and employment;

23.  Believes it to be of utmost importance that the newly founded European Financial Authorities be funded from the beginning in a proper and sufficient way which allows them to contribute to the stability of the European and international financial system;

24.  Is convinced that the financing of the Euratom-Joint Undertaking for ITER should be reconsidered in the light of the Commission proposal on the financing of ITER for the years 2012 and 2013; is not ready to accept redeployment within the existing 7th framework programme for research to finance increasing financial needs that are no longer in line with the original proposal; considers therefore that, in the light of the implementation delays, and in order to launch negotiations with the Council on the future financing of ITER, a reduction by EUR 47 million in commitment and payment appropriations on line 08 20 02 is the most suitable budgetary option;

25.  Supports the Commission's proposal to introduce payment appropriations under the heading on the European Globalisation Adjustment Fund, in order to simplify the financial procedures relating to applications approved by the two arms of the budgetary authority; consequently restores the default value, noting that it can be insufficient for the needs of 2011;

26.Is convinced that a strategic perspective on the European energy situation is needed; notes that the Commission has established a Strategic Energy Technology (SET) Plan which is still in unclear finance conditions; has therefore created p.m. lines for several fields of the SET-plan which should become active soon;
On subheading 1b

27.  Notes that Council's position does not modify Commission's proposal in respect of commitments, and stresses that this position on commitment appropriations is well in line with the allocations set out in the MFF, taking into account the technical adjustment to the financial framework for 2011, as provided for in point 17 of the IIA of 17 June 2006;

28.  Deplores Council's restrictive approach on payments, which were cut by EUR 1 075 million (half of which for the completion of the 2006-2010 programming period) as compared to Commission's forecasts of payment needs for 2011; stresses that the latter were already assessed by the European Parliament as possibly having been underestimated and that Council's approach may put at risk the necessary catching up of programme implementation after its slow start at the beginning of the 2007-2013 period, as well as the recent legislative modifications agreed between Parliament and the Council in the frame of the European Economic Recovery Plan;

29.  Therefore restores Council's cuts in payment appropriations to the level of DB, while sticking to its initial position that Commission and Council should present and adopt swiftly an amending budget in case payment appropriations happen not to be sufficient to cover the needs; welcomes Council's declaration in this respect;

30.  Recalls that the EU Strategy for the Baltic Sea Region Action Plan states that the proposed actions should, as far as possible, be funded from existing sources, including Structural and Cohesion funds; points out that the Council conclusions on the EUSBSR state that the Strategy relies on more efficient use of existing EU instruments and funds, as well as other existing resources and financial instruments; underlines that this Strategy must be given appropriate recognition and funding;

On heading 2

31.  Points out that the CAP's primary goal should be to provide market stability, food security, fair prices revenues for farmers, including protection of the environment and landscapes, and therefore calls on the Commission to provide in the 2011 budget a financial buffer for the means necessary to make access to funding uncomplicated, should the market experience volatility in 2011;

32.  Recognises the benefit of the EUR 300 million in exceptional funding for the dairy sector that was provided for in Budget 2010; supports the creation of a new budget line to act as a dairy fund to provide support for modernisation, diversification and restructuring and to improve marketing and the bargaining position of dairy farmers in order to respond to growing market power of processors and retailers in the food chain; points out that the Commission has already approved the dairy fund;

33.  Considers that the national support programme for the wine sector should be maintained, albeit at a reduced level; points out that, at the time of the reform of the wine market regime, the Commission explicitly stated that this reform should be budget neutral;

34.  Recognises that the School Fruit Scheme and the School Milk Scheme are important programmes in terms of encouraging healthy diet amongst children; welcomes the Commission's proposed increase in funding for theses two schemes and decides to increase further their appropriations; stresses the importance of the programme for deprived persons, and decides to increase its appropriations, but recalls that it must be implemented in the light of proceedings before the General Court;

35.  Supports, in line with its priorities, the creation of a pilot project aiming at promoting the exchange of best practices between young farmers, in particular in relation to the challenges facing the European agricultural sector;

36.  Is convinced that LIFE+ (Financial instrument for the environment 2007-2013) should be strengthened further in order to comply with the additional measures; emphasises that environmental concerns are a priority in environmental and agricultural policy and that an increase in funding is pivotal in preserving nature and biodiversity; considers that in addition to LIFE+, sustainable development criteria should be mainstreamed across all relevant EU instruments;

On subheading 3a

37.  Considers several programmes, such as the Prevention, preparedness and consequence management of terrorism to be essential for the implementation of the Stockholm programme, and reiterates its support for the Daphne programme - Fight against violence, under which programmes worthy of financing cannot be funded due to the shortage of appropriations, and Drugs prevention and information; in this context, places particular emphasis on the fight against violence perpetrated against women, including through coercive abortion, female genital mutilation, forced sterilisation or any other cruel, inhuman or degrading treatment;

38.  Due to the poor level of information on the next steps of the SIS II project presented to Parliament, considers a reserve for appropriations to be the most appropriate means of obtaining the requested information on necessary improvements;

39.  Considers the planning set out in the Commission staff working document of 21 September 2010 insufficient to satisfy Parliament's requests for information on necessary improvements and a full overview of the SIS II budgeting;

On subheading 3b

40.  Recalls that heading 3b includes policies which have a direct impact on the daily lives of European citizens and is totally convinced that the actual potential of this heading cannot be fully released with the limited margin fixed by the current MFF; highlights that the proposed financing of these instruments by the Council does not match the core priorities covered by this heading, and underlines in particular that the extremely high implementation rates of youth-related programmes so far prove that they deserve a much stronger investment;

41.  Reiterates its intention to increase appropriations for the Youth in Action Programme, the World Special Olympic Summer Games, the Information outlets and the ongoing Preparatory Action in the field of sport; takes note of the initiative of the Council to present a new Preparatory action on commemorative sites in Europe and is of the opinion that this preparatory action could promote EU citizenship by preserving and facilitating access to historical sites of shared European memory;

42.  Considers it necessary for the Commission to present a comprehensive strategy on improved communication with EU citizens and on the creation of a European public sphere, in line with the Interinstitutional Joint Declaration ‘Communicating Europe in Partnership’ of October 2008;

On heading 4

43.  Is absolutely convinced that the role of the EU as a global player cannot be properly financed within the margins provided for by the MFF, and that this shortage of means should not be addressed by the two branches of the budgetary authority through last-minute compromises without proper reflection on medium-term needs; recalls that a review of the MFF and the revision of the ceiling of heading 4 to take into account the needs that have arisen and which could not have been foreseen in 2006 is a condition sine qua non for the manageability and sustainability of this heading;

44.  Is of the opinion that, in the context of extremely narrow room for manoeuvre within this heading and in the struggle to make savings initiated by the Council, the financing of priorities can only be guaranteed through selected decreases of appropriations on a limited number of budget lines; considers the appropriations envisaged for assistance to rehabilitation of Afghanistan and for Macro Financial Assistance could be partially reduced without substantially adversely affecting operations; in the same spirit, decides to restore appropriations for the Common and Foreign Security Policy at the level of Budget 2010, as allowed by point 42 of the IIA;

45.  Reiterates its commitment not to reduce arbitrarily appropriations for assistance to Palestine, the peace process and UNRWA; reiterates nevertheless its firm conviction that the discrepancy between its global financial assistance - the EU as a whole being the first donor - and its limited influence on the Peace process is neither justified nor comprehensible and needs to be addressed thoroughly, especially in the context of the newly created European External Action Service;

46.  Reiterates its opposition to the proposed redeployment of appropriations from several instruments and programmes to Bananas Accompanying Measures and to the Instrument for Cooperation with Industrialised Countries (ICI+), the financing of which was not foreseen at the time of the adoption of the current MFF, but reiterates nevertheless its support for these instruments; stresses that the Development Cooperation Instrument cannot be considered as a fund that could be appealed to for the financing of any new need arising in the field of heading 4, but that is has been settled and funded for a specific list of objectives that the EU has, on numerous occasions, committed itself to achieve; calls therefore on the Council to agree on a multiannual financing of these measures through all means provided for in the IIA;

47.  Decides to put part of the appropriations for environment and sustainable management of natural resources, including energy, in reserve, pending a presentation by the Commission of a politically binding document demonstrating that the ‘fast start’ climate finance package is truly additional, that it allocates EU resources to partner regions in a geographically balanced way and that it does not come at the expense of existing development cooperation programmes, as well as clear information on criteria for selection of the beneficiaries and details of agreements with the developing countries;

48.  Initiates a mainstreamed approach on EU support to Fair Trade across budgetary titles;

49.  Considers that, in line with the quadripartite negotiations on the setting up of the European External Action Service, an enhanced identification of CFSP and CDSP missions should be sought, in the interests of improved transparency and the facilitation of budgetary overview; decides, consequently, to split lines 19 03 01, 19 03 03 and 19 03 07 in order to create separate budget lines for EUMM Georgia, EULEX Kosovo and EUPOL Afghanistan, which are the major missions conducted under CFSP/CDSP for the year 2011;

50.  Wonders why payments are still being made to retired Commissioners when they subsequently have alternative employment; firmly requests the Commission to undertake a detailed review of current procedures and submit a detailed report to Parliament by 30 April 2011;

51.  Considers, in line with its resolutions on transatlantic relations, that the EU-US strategic partnership must be clearly identified via the creation of a specific budget line on ‘Cooperation with the United States’;

52.  Is convinced that a further increase of the financial envelope to support the Turkish Cypriot community is necessary in order to ensure adequate financing of the work of the Committee on Missing Persons in Cyprus as well as the restoration projects of the Technical Committee on Cultural Heritage; considers the work of these committees to be of paramount importance for both communities in Cyprus;

On heading 5

53.  Rejects Council's general position on heading 5 expenditure, which consists in an overall reduction of more than EUR 115 million, resulting from the non-budgeting of the 1,85% salary and pension adjustment, a global cut to European Schools' budget lines, which goes against Parliament's priorities on Youth-Education-Mobility;

54.  Stresses that such a restrictive approach, while resulting in short-term savings for the EU budget and the Member States, endangers the implementation of EU policies and programmes; further stresses that institutions should be provided with adequate resources to carry out their tasks, especially after the entry into force of the TFEU;

55.  Therefore restores generally the cuts made by the Council, while putting in reserve the amounts corresponding to the 1,85% salary adjustment pending the judgement of the Court of Justice; considers that the budgeting of such expenditure is sound and prudent budgetary management;

56.  Restores Commission's Draft budget for all other abovementioned cuts except the one in respect of conferences, meetings and committees; considers the cuts made to the budget of the European Schools to be unacceptable; wonders in addition how Council is able to estimate the possible staffing levels in the services of the Commission with more accuracy than the Commission itself;

57.  Requests the Council to adopt quickly Amending Letter No 1/2011, so that the European External Action Service can start functioning with adequate resources at the very beginning of 2011, but decides to put appropriations in reserve pending further consultation of Parliament's relevant bodies by the Vice-President of the Commission/High Representative of the Union for Foreign Affairs and Security Policy on the priorities to be realised by the resources freed by the merging of current Commission and Council structures;

58.  Sets reserves on certain administrative lines, pending specific actions, follow-up or proposals by the Commission or with a view to obtaining additional information from it; requests particularly a revision of the Code of Conduct for Commissioners and the strict application of it concerning the modalities of allocation for the pensions of former members in order to release certain of these reserves;

On agencies

59.  Endorses, as a general rule, Commission's estimates of agencies' budgetary needs and rejects the principles on which Council's position on the budgets of EU decentralised agencies as compared to 2010 was based, i.e.:

60.  Considers, however, that the EU subsidy to fee-collecting agencies should not be reduced by the amount of assigned revenue so as to give them the adequate budgetary flexibility in view of the volatility of collected fees;

61.  Further decides to increase the 2011 budget allocation to the three new financial supervision agencies in line with available estimates of the budgetary impact of the outcome of the negotiations with the Council, to set a reserve for the European Police College, pending the outcome of 2008 discharge procedure to increase EU funding to the European Training Foundation, in line with Parliament's priorities, as well as to increase the budget allocation to the Fisheries Control Agency so that it is in a position to discharge its control obligations in international waters;

On pilot projects and preparatory actions

62.  Stresses that pilot projects and preparatory actions, adopted in a limited number, have been thoroughly considered and evaluated, also in the light of the useful and constructive first assessment by the Commission in July 2010, in order to avoid duplication of actions already covered by existing EU programmes; recalls that pilot projects and preparatory actions aim at formulating political priorities and at introducing new initiatives that might turn into future EU activities and programmes;

SECTIONS I, II, IV, V, VI, VII, VIII, IX
General Framework

63.  Recalls that the institutions should draw up their budgets on the basis of sound and efficient management and, taking into account the effects of the current economic crisis, make the necessary efforts to use resources effectively, enabling them to pursue their obligations under the Lisbon Treaty while, at the same time, looking for savings where possible;

64.  Draws attention to the ongoing case brought by the Commission before the Court of Justice concerning salary adjustments and has decided to enter appropriations in reserve, on the principle of budgetary prudence, that would cover the effects for 2011, should the Court rule in favour of the Commission on the 1,85% salary adjustment in question;

65.  Notes that the Council has cut appropriations in relation to Croatia, using a different working hypothesis on the date of accession of Croatia than the Commission; decides, in the absence of new elements that warrant a modification at this point in time, to follow the Commission's approach;

66.  Has decided, following an assessment of the requests of each institution, to restore a part of the reductions made by Council to the budget of the institutions in those cases where the specific requests of each institution are considered to be fully justified;

67.  Stresses that the Council's failure until now to reach a position on Draft amending budget No 2/2010 for the Committee of the Regions and the Economic and Social Committee, leaves no other option than to make the contents of that draft amending budget part of the discussion for the budget for 2011;

Section 1 - European Parliament
General framework

68.  Stresses that negotiations took place during two pre-conciliation meetings in March and April 2010 and that, on a large number of issues, clear results were achieved at the stage of establishing the estimates; welcomes the good will and constructive nature of these meetings; welcomes the fact that the Amending Letter adopted by the Bureau in September 2010 does not imply major changes to the estimates;

69.  Is aware that a difficult but satisfactory balance has to be struck between the needs to implement fully the tasks of the Parliament as laid down by the Lisbon Treaty, which do necessitate increasing resources, and the application of sound budgetary principles and restraint in a time of financial crisis; has therefore screened the different budget lines in detail and made some adaptations to the appropriation entered in the estimates;

70.  Points out that the overall level of its budget amounts to EUR 1 700 349 283, which is a 20,21% share of expenditure under heading 5 (administrative appropriations) of the MFF, i.e. in line with its previous resolutions to the effect that expenditure should be situated around the 20% mark;

71.  Stresses, in this respect that considerable increases of competences under the Lisbon Treaty with the resulting needs for personnel and other resources, have been absorbed into this amount;

72.  Notes that the final amount decided by the budgetary authority represents a net reduction of EUR 6 198 071 compared to the Draft budget and EUR 25 029 014 to the initial budget proposals before conciliation with the Bureau;

73.  Maintains its position that, in any event, a policy of identifying savings wherever possible and the continued pursuit of reorganisation and redeployment of existing resources are crucial elements of its budgetary policy, especially in this time of economic crisis;

Human resources

74.  Notes the strong emphasis on indirect assistance to members proposed by its Bureau and approved by its Committee on Budgets, through clearly strengthening areas such as the Parliament's research and policy analysis capacity, library services, policy departments and related areas; recalls that this is the corresponding complement, following the new and stronger role of the Parliament, to the direct assistance measures already boosted in the 2010 budget and Amending budget No 1/2010;

75.  Recalls its resolution of 18 May 2010 on the estimates of revenue and expenditure of Parliament for the financial year 2011(8) and the accompanying establishment plan; now decides to make some adjustments as described in the following paragraphs;

76.  Recalls its decision to boost the capacity of the library services, confirming 15 new posts for 2011 and transforming the 13 contractual agents into permanent posts as part of this process; decides to reduce the appropriations relating to 8 of these posts with a view to phasing in recruitments over a two-year period;

77.  Has decided to maintain in reserve the appropriations linked to the 30 posts (6 AD5 and 24 AST1) for ‘other sectors’ pending further information requested;

78.  Decides to approve the internalisation of the accreditation service, as suggested in the Amending Letter, and, in consequence, to create 16 new posts under the establishment plan (1 AD5 and 15 AST1) and make available the corresponding appropriations;

79.  Approves, following the Amending Letter, the following budgetary-neutral measures:

80.  Has released EUR 3 million of appropriations in the reserve relating to Croatia, in line with its previous decision on transfer C1/2010; and has transferred these funds toward the budget item for hiring contract agents;

Direct Assistance to members

81.  Subsequent to its previous in-depth debate on the assistants allowance in connection with Amending Budget No 1/2010, and the Bureau proposals for 2011 for a second tranche of reinforcement, decides to maintain these appropriations in reserve; notes the replies received by the administration but finds them inconclusive for justifying a further increase at this stage; recalls its request for information as voted in its resolution of 25 March 2010 on the guidelines for the 2011 budgetary procedure(9);

82.  Rejects the request from its Bureau to up-grade the Questors' assistants from AST 4 to AST 8;

Buildings policy

83.  Has modified the heading of budget item 2 0 0 8 in order to provide increased transparency on different building projects;

84.  Requests to be kept informed on a regular basis on new developments for building projects with a significant impact on the budget, such as eg. the KAD building and awaits the replies as regards the financial impact of possible parallel building projects in Brussels on the budget;

Communication and information policy

85.  Takes note of the reply given on the state of play as regards a Knowledge Management System, which however at this stage of the project cannot yet be evaluated as to whether it will meet the expectations raised; highlights the need for a timetable regarding the implementation of this system; recalls its request in the resolution on the Guidelines that such a system be made easily accessible for European citizens via the internet; requests information regarding how savings can be made following the implementation of the Knowledge Management System;

86.  Notes that a significant number of members have raised questions concerning the content and state of play as regards the IT mobility project, which may warrant a more profound analysis and discussion; has decided to enter appropriations relating to this project in reserve for the time being to allow for such discussion and analysis;

87.Requests to be kept informed on developments as regards Parliament's WEB TV and decides to enter EUR 1 million in reserve;
Environment-related matters

88.  Reiterates its support for effectively putting into place concrete incentives and measures to make more and better use of less polluting means of transport than airplanes and cars, such as public transport and bicycles, which may also help to identify possible future savings on budget items such as ‘vehicles’;

89.  In the same spirit, underlines the need to develop further measures to improve resource efficiency both in budgetary and environmental terms;

90.  Is satisfied that some further saving can be made on the budget item for Members' travel costs and the item for energy consumption by a total of EUR 4 million;

Multi-annual projects and other items of expenditure

91.  Concerning the House of European History, decides to enter the requested EUR 2,5 million for further studies in the reserve; notes that, pending the evaluation of the architects proposals, there is still no overview of the global cost of the project available; refers also to the other requests made in different resolutions of the Parliament to which no reply has yet been received, such as possible cooperation with other institutions and possible interested partners;

92.  Decides to adjust appropriations for a further number of budget items and to create some reserves on budget items where the exact need for appropriations is difficult to forecast and possible additional needs or, on the contrary, savings may arise in the course of the year;

93.  Recalls that, during the estimates stage and the conciliation procedure between its Committee on Budgets and the Bureau , the initial amount of EUR 1,2 million contemplated to finance the latter's decision to introduce an office holder allowance, was brought down to EUR 400 000; recalls furthermore that expenditure relating to this office holder allowance can be reimbursed only upon presentation of supporting documents fully justifying such costs; points out that other increases compared to the financial year 2010 are mainly for the renewal of the stock of representation articles for the protocol services; considers that if such stock is renewed this year, expenditure for this item can likely be reduced in coming years; stresses the need for budgetary prudence concerning mission requests, between Parliament's places of work and other missions, as well as utmost self-restraint as regards representation expenses in these times of economic crisis; would therefore warmly welcome the reduction of such expenses  in the course of the year compared to the forecast initial needs;

Section IV - Court of Justice

94.  Decides to create 29 new posts out of the 39 requested, mainly as a result of a high increase in the number of cases and resulting workload leading to an additional demand for lawyer linguists and translation (24 of the posts related to this) and a limited number of other justified increases;

95.  Notes that during its reading, the Council has cut the appropriations included in this item in a manner that does not properly reflect the high rate of occupancy of posts achieved by the Court of Justice in 2009 and during the first half of 2010; has decided therefore that the 3% cut imposed by the Council (and equivalent to raising the standard abatement rate from 2,5% to 5,5%) needs to be reduced to 1% in order to meet the necessary needs of the establishment plan and allow the Court of Justice to correctly carry out its functions;

96.  Takes a compromise position on various lines of support expenditure, granting more than the Council but less than the draft budget; makes an exception for some IT-related expenditure where, following external audit recommendations, the full amount is provided on two lines;

Section V - Court of Auditors

97.  Notes that the Court's draft budget was only marginally amended by the Council and that, overall, the resulting levels could be accepted; notes that, following an increase of 32 auditor posts in the past two years, no additional staff, although initially planned, were requested in an exercise of self restraint;

98.  Welcomes the Court's systematic commitment to reducing its administrative support costs and holding internal budget audits; wishes to further explore to what extent other Institutions can make use of the Court's expertise in this field;

Section VI - European Economic and Social Committee

99.  Decides to introduce a compromise solution concerning new posts requested as a consequence of the Lisbon Treaty, along the lines already proposed by the Spanish Presidency in the summer, consisting of the creation of 11 new posts in order to deal with increased competencies and workload as follows: 6 AD5, 3 temporary AD9 and 2 AST3;

100.  Notes that these posts are intended, inter alia, to boost the Committee's capacity in the areas of consultative work, programming and relations with civil society and that they strike an acceptable compromise position between the Committee's original requests and the Council's draft budget;

101.  Having taken note of current vacancy rates and heard the Committee on this issue, decides to apply an abatement rate of 4,5% on salaries, instead of the 5,5% suggested by the Council, in order not to hinder effective recruitment on vacant posts;

102.  Underlines the need to implement without delay the Committee's decision in principle to reimburse its Members' transport tickets on the basis of real costs and to scrap the flat-rate system currently possible; welcomes this decision in principle, has made available the appropriations relating to this change in system and will continue to follow this issue;

103.  Agrees to a limited number of increases compared to the Council's reading, while still representing a saving on the DB, as concerns various support expenditure lines;

Section VII - Committee of the Regions

104.  Decides to introduce a compromise solution concerning new posts requested as a consequence of the Lisbon Treaty, along the lines already proposed by the Spanish Presidency in the summer, consisting of the creation of 18 new posts in order to deal with increased competencies and workload as follows: 2 AD9, 5 AD7, 7 AD5, 2 AST3 and 2 AST1;

105.  Notes that these posts are intended, inter alia, to boost the Committee's capacity in the areas of subsidiarity, territorial cohesion, impact assessments, consultative work and expanded inter-regional activities;

106.  Decides to introduce a general abatement rate of 5% after hearing the Committee's arguments as regards recruitment levels and vacancy rates;

107.  Takes a compromise position between the Committee's requests and the Council's reductions on various support expenditure lines;

Section VIII - European Ombudsman

108.  Considers that the DB of this Institution as largely satisfactory and also notes that very few changes were introduced by the Council;

109.  Stresses, however, that it takes the opposite view from Council concerning the creation of 1 temporary post, with no budget impact as the same expenditure is currently paid through contracts, and therefore decides to approve it;

Section IX - European Data Protection Supervisor

110.  Taking into account the combined workload of this institution, based on previously existing obligations and on new obligations under the Lisbon Treaty, leading to increasing consultations on legislation with an impact on data protection, has decided to create 2 new posts for 2011 (1 AD6 and 1 AD9);

111.  Has taken a restrictive approach on increases asked on other lines and asks the Supervisor to manage those needs internally, within existing budgets;

o
o   o

112.  Instructs its President to forward this resolution to the Council and the Commission and to the other institutions and bodies concerned.

(1) OJ L 163, 23.6.2007, p. 17. (2) OJ L 248, 16.9.2002, p. 1. (3) OJ C 139, 14.6.2006, p. 1. (4) Texts adopted, P7_TA(2010)0086. (5) Texts adopted, P7_TA(2010)0205. (6) OJ C 27 E, 31.1.2008, p. 214. (7) Texts adopted, P7_TA(2010)0328. (8) Texts adopted, P7_TA(2010)0171. (9) Texts adopted, P7_TA(2010)0087.

European Parliament legislative resolution of 20 October 2010 on the proposal for a directive of the European Parliament and of the Council amending Council Directive 92/85/EEC on the introduction of measures to encourage improvements in the safety and health at work of pregnant workers and workers who have recently given birth or are breastfeeding (COM(2008)0637 – C6-0340/2008 – 2008/0193(COD))

P7_TA(2010)0373 A7-0032/2010

(Ordinary legislative procedure: first reading)

The European Parliament,

–  having regard to the Commission proposal to Parliament and the Council (COM(2008)0637),

–  having regard to Article 251(2) and Articles 137(2) and Article 141(3) of the EC Treaty, pursuant to which the Commission submitted the proposal to Parliament (C6-0340/2008),

–  having regard to the Commission Communication to Parliament and the Council entitled ‘Consequences of the entry into force of the Treaty of Lisbon for ongoing inter-institutional decision-making procedures’ (COM(2009)0665),

–  having regard to Article 294(3) and Article 153(2) and Article 157(3) of the Treaty on the Functioning of the European Union,

–  having regard to the opinion of the European Economic and Social Committee of 13 May 2009(1),

–  after consulting the Committee of Regions,

–  having regard to the opinion of the Committee on Legal Affairs on the proposed legal basis,

–  having regard to Rules 37, 55 and 175 of its Rules of Procedure,

–  having regard to the first report of the Committee on Women's Rights and Gender Equality and the opinion of the Committee on Employment and Social Affairs (A6-0267/2009),

–  having regard to the second report of the Committee on Women's Rights and Gender Equality and the opinion of the Committee on Employment and Social Affairs (A7-0032/2010),

1.  Adopts its position at first reading hereinafter set out;

2.  Calls on the Commission to refer the matter to Parliament again if it intends to amend the proposal substantially or replace it with another text;

3.  Instructs its President to forward its position to the Council, to the Commission and to the national parliaments.

Position of the European Parliament adopted at first reading on 20 October 2010 with a view to the adoption of Directive 2011/.../EU of the European Parliament and of the Council amending Council Directive 92/85/EEC on the introduction of measures to encourage improvements in the safety and health at work of pregnant workers and workers who have recently given birth or are breastfeeding and on the introduction of measures to support workers in balancing work and family life

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the functioning of the European Union, and in particular Articles 153(2) and 157(3) thereof,

Having regard to the proposal from the European Commission,

Having regard to the opinion of the European Economic and Social Committee(2),

After consulting the Committee of the Regions,

Acting in accordance with the ordinary legislative procedure(3),

Whereas:

(1)  Article 153 of the Treaty on the Functioning of the European Union (TFEU) provides that with a view to achieving the objectives of Article 151 TFEU, the Union shall support and complement the activities of Member States in improving the working conditions to protect the safety and health of workers and in ensuring equality between women and men with regard to labour market opportunities and treatment at work.

(2)  Article 157 TFEU provides that the European parliament and the Council, acting in accordance with the ordinary legislative procedure, and after consulting the Economic and Social Committee, shall adopt measures to ensure the application of the principle of equal opportunities and equal treatment of men and women in matters of employment and occupation.

(3)  Since this Directive addresses not only the health and safety of workers who are pregnant, or have recently given birth or are breastfeeding, but also, inherently, issues of equal treatment, such as the right to return to the same or an equivalent working place, the rules on dismissal and employment rights, or on better financial support during the leave, Articles 153 and 157 TFEU are combined to form the legal base for this Directive.

(4)  Equality between men and women is a fundamental principle of the European Union. Articles 21 and 23 of the Charter of Fundamental Rights of the European Union prohibit any discrimination on grounds of sex and require equality between men and women to be ensured in all areas, including in the achievement of a work-life balance.

(5)  Under Article 3 of the Treaty on European Union, promoting such equality is one of the Union's essential tasks. Similarly, under Article 8 TFEU the Union must aim to eliminate inequalities and to promote equality between men and women in all its activities.

(6)  In its judgment of 26 February 2008 in Case C-506/06 Mayr v Flöckner(4), the Court of Justice held that direct discrimination on grounds of sex occurs if a female employee is placed at a disadvantage on account of absence in connection with in vitro fertilisation treatment.

(7)  The entitlement of a woman on maternity leave to return, after the end of that leave, to her job or to an equivalent post is laid down in Article 15 of Directive 2006/54/EC of the European Parliament and of the Council of 5 July 2006 on the implementation of the principle of equal opportunities and equal treatment of men and women in matters of employment and occupation(5).

(8)  Council Directive 92/85/EEC(6) implements measures to encourage improvements in the safety and health at work of pregnant workers and workers who have recently given birth or are breastfeeding.

(9)  The objectives set out in the Presidency Conclusions of the Barcelona European Council of 15 and 16 March 2002 stated that Member States should remove disincentives to women's involvement in the labour market and aim to provide by 2010 childcare facilities for at least 90% of children between the age of three and the compulsory school age and for at least 33% of children under the age of three, and that such children should have equal access to such facilities in towns and rural areas.

(10)  The World Health Organisation Global strategy on infant and young child feeding of 16 April 2002, endorsed by Resolution 55.25 of the 55th World Health Assembly states that exclusive breastfeeding during the first six months of a child's life guarantees optimum growth and development. On the basis of this resolution, the Member States should encourage the provision of leave designed to fulfil this purpose.

(11)  One of the six priorities laid down in the Commission Communication of 1 March 2006, entitled ‘A Roadmap for equality between women and men 2006-2010’ is to achieve a better balance between work and private and family life. In this connection the Commission undertook to review the existing legislation in the field of gender equality with a view to modernising it, where necessary. The Commission also announced that in order to improve governance of gender equality, it would ‘review the existing EU gender equality legislation not included in the 2005 recast exercise with a view to updating, modernising and recasting where necessary’. Directive 92/85/EEC was not included in the recasting exercise.

(12)  In its Communication of 2 July 2008, entitled ‘Renewed Social Agenda: Opportunities, access and solidarity in 21st century Europe’, the Commission affirmed the need to improve reconciliation of private and professional life.

(13)  All parents have the right to care for their child.

(14)  The provisions of this Directive concerning maternity leave should be without prejudice to Member States' other rules on parental leave and this Directive should not undermine those rules. Maternity leave, paternity leave and parental leave are complementary and when used in combination can promote a better work-life balance.

(15)  A worker who has adopted a child should have the same rights as a natural parent and be entitled to take maternity leave on the same conditions.

(16)  The vulnerability of pregnant workers and of workers who have recently given birth or who are breastfeeding makes it necessary for them to be granted the right to maternity leave of at least 20 continuous weeks, allocated before and/or after confinement, and renders necessary the compulsory nature of maternity leave of at least six weeks allocated after confinement.

(17)  The care of disabled children presents a particular challenge for working mothers, which should be recognised by society. The increased vulnerability of working mothers of disabled children means that they should be granted additional maternity leave; this Directive should lay down the minimum period of such leave.

(18)  In order to be considered maternity leave within the meaning of this Directive, family-related leave which is available at national level should extend beyond the periods provided for in Council Directive 96/34/EC of 3 June 1996 on the framework agreement on parental leave concluded by UNICE, CEEP and the ETUC(7); should be remunerated as provided for in this Directive; and the guarantees laid down in this Directive in relation to dismissal, return to the same job or an equivalent post, and discrimination, should apply.

(19)  The Court of Justice has consistently recognised the legitimacy, in terms of the principle of equal treatment, of protecting a woman's biological condition during and after pregnancy. It has, moreover, consistently ruled that any unfavourable treatment of women related to pregnancy or maternity constitutes direct sex discrimination.

(20)  On the basis of the principle of equal treatment, the Court has also recognised the protection of employment rights of women, and in particular their right to return to the same or an equivalent job, on terms that are no less favourable, as well as to benefit from any improvement in working conditions introduced during their absence.

(21)  A post termed ‘equivalent’ should mean a post that is the same as the former post, as regards both the salary paid and the duties to be performed or where this is not possible, a similar post corresponding to the worker's qualifications and existing salary.

(22)  In view of demographic trends in the Union, it is necessary to promote an increase in the birth-rate by means of specific legislation and measures to combine work, private life and family life more effectively.

(23)  Women should therefore be protected from discrimination on grounds of pregnancy or maternity leave, and should have adequate means of legal protection, in order to safeguard their rights to decent working conditions and a better balance between family life and work.

(24)  In the resolution of the Council and of the Ministers for Employment and Social Policy, meeting within the Council, of 29 June 2000 on the balanced participation of women and men in family and working life(8), Member States were encouraged to consider whether, under their respective legal systems, working men might be granted a non-transferable individual right to paternity leave, without any loss of employment rights.

(25)  For the purposes of helping workers reconcile their professional and family life, it is essential to provide for longer maternity and paternity leave, including in the event of adoption of a child under the age of 12 months. The worker who has adopted a child under the age of 12 months should have the same rights as a natural parent and be able to take maternity and paternity leave on the same conditions.

(26)  For the purposes of helping workers to reconcile their professional and family life and to achieve true gender equality it is essential for men to be entitled to paid paternity leave, granted on an equivalent basis – except with regard to its duration – to maternity leave with a view to gradually establishing the conditions required. This entitlement should also be given to unmarried couples. Member States are encouraged to consider whether, under their respective legal systems, working men might be granted a non-transferable individual right to paternity leave, without any loss of employment rights.

(27)  In the context of the Union's ageing population and the Commission Communication of 12 October 2006 entitled ‘The demographic future of Europe – from challenge to opportunity’, every effort will need to be made to ensure the effective protection of motherhood and fatherhood.

(28)  The Commission Green paper entitled ‘Confronting demographic change: a new solidarity between the generations’ refers to the fact that the Member States have low fertility rates, which are insufficient for the replacement of the population. Measures are therefore needed for the improvement of conditions at the workplace for workers before, during and after pregnancy. It is recommended that the best practices from those Member States with high fertility rates and which ensure the continued participation of women in the labour market be followed.

(29)  In the December 2007 conclusions of the Employment, Social Policy, Health and Consumer Affairs (EPSCO) Council on ‘Balanced roles for women and men for jobs, growth and social cohesion’, the Council recognised reconciliation of work and family and private life as being a key area as regards the promotion of gender equality in the labour market.

(30)  This Directive is without prejudice to Directive 2002/73/EC of the European Parliament and of the Council of 23 September 2002 amending Council Directive 76/207/EEC on the implementation of the principle of equal treatment for men and women as regards access to employment, vocational training and promotion, and working conditions(9), as recast in Directive 2006/54/EC.

(31)  The protection of the safety and health of pregnant workers, workers who have recently given birth or workers who are breastfeeding should be guaranteed and not run counter to the principles enshrined in the Directives concerning equal treatment for men and women.

(32)  In order to improve the effective protection of pregnant workers and workers who have recently given birth or are breast feeding, the rules on the burden of proof should be adapted where there is a prima facie case of a breach of the rights granted under this Directive. For those rights to be applied effectively, the burden of proof should fall on the respondent when evidence of such a breach is brought.

(33)  Provision concerning maternity leave would serve no purpose unless accompanied by the maintenance of all rights linked to the employment contract, including maintenance of full pay and entitlement to an equivalent allowance.

(34)  The effective implementation of the principle of equal treatment requires adequate judicial protection against victimisation.

(35)  Member States should provide for effective, proportionate and dissuasive penalties in the event of any breach of the obligations under this Directive.

(36)  Member States are urged to introduce into their national legal systems measures to ensure real and effective compensation or reparation, as they consider to be appropriate, for any harm caused to a worker by any breach of the obligations under this Directive, in a way which is dissuasive, effective and proportionate to the damage suffered.

(37)  Experience shows that protection against breaches of the rights guaranteed by this Directive would be strengthened by giving the equality body or bodies in each Member State competence to analyse the problems involved, to consider possible solutions and to provide practical assistance to victims. Therefore, provision should be made to this end in this Directive.

(38)  Victims of discrimination should have adequate means of legal protection. To provide more effective protection, it should be possible for associations, organisations and other legal entities to engage, as Member States consider to be appropriate, in proceedings on behalf of or in support of any victim, without prejudice to national rules of procedure concerning representation and defence before the courts.

(39)  It will be necessary for Member States to encourage and promote active participation by the social partners to ensure better information for those concerned and more effective arrangements. Through encouraging dialogue with the abovementioned bodies, Member States could obtain more feedback and a greater insight into the implementation of this Directive in practice, and of problems likely to arise, with a view to eradicating discrimination.

(40)  This Directive lays down minimum requirements and thus offers the Member States the option of introducing or maintaining more favourable provisions. The implementation of this Directive should not serve to justify any regression in relation to the situation prevailing in each Member State, in particular national laws which, by combining parental leave and maternity leave, provide for an entitlement to the mother of at least 20 weeks of leave allocated before and/or after confinement, and remunerated at least at the level provided for in this Directive.

(41)  Member states should encourage dialogue between social partners and with non-governmental organisations, in order to be aware of and to fight against different forms of discrimination.

(42)  Since the objectives of the action to be taken, namely to improve the minimum level of protection of pregnant workers and workers who have recently given birth or are breastfeeding and to improve the effective implementation of the principle of equal treatment cannot be sufficiently achieved by the Member States in view of their diverging levels of protection, and can therefore be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in that Article, this Directive does not go beyond what is necessary in order to achieve those objectives,

HAVE ADOPTED THIS DIRECTIVE:

Article 1

Directive 92/85/EEC is hereby amended as follows:

(1)  In Article 1 the following paragraph is inserted:"

1a.  This Directive also aims to improve the conditions for pregnant workers and workers who have recently given birth to remain in, or return to, the labour market and to ensure better reconciliation of professional, private and family life.

(2)  Article 2 is replaced by the following:"

Article 2

Definitions

(3)  Article 3 is replaced by the following:"

Article 3

Guidelines

1.  In consultation with the Member States and assisted by the Advisory Committee on Safety, Hygiene and Health Protection at Work, the Commission shall draw up guidelines on the assessment of the chemical, physical and biological agents and industrial processes considered hazardous for the reproductive health of male and female workers and for the safety or health of workers within the meaning of Article 2. These guidelines shall be reviewed and shall, from 2012, be updated at least every five years.

The guidelines referred to in the first subparagraph shall also cover movements and postures, mental and physical fatigue and other types of physical and mental stress connected with the work done by workers within the meaning of Article 2.

2.  The purpose of the guidelines referred to in paragraph 1 is to serve as a basis for the assessment referred to in Article 4(1).

To this end, Member States shall bring these guidelines to the attention of all employers and all male and female workers and/or their representatives and the social partners in their respective Member State.

(4)  Article 4 is replaced by the following:"

Article 4

Assessment, information and consultation

1.  In the risk assessment carried out pursuant to Directive 89/391/EEC the employer shall include an assessment of the reproductive risks for male and female workers. For all activities liable to involve a specific risk of exposure to the agents, processes or working conditions for which a non-exhaustive list is included in Annex I, the employer shall assess the nature, degree and duration of exposure, in the undertaking and/or establishment concerned, of workers within the meaning of Article 2 and workers likely to be in one of the situations referred to in Article 2, either directly or by means of the protective and preventive services referred to in Article 7 of Directive 89/391/EEC, in order to:

2.  Without prejudice to Article 10 of Directive 89/391/EEC, workers within the meaning of Article 2 of this Directive and workers likely to be in one of the situations referred to in Article 2 of this Directive in the undertaking and/or establishment concerned and/or their representatives and the relevant social partners shall be informed of the results of the assessment referred to in paragraph 1 and of all measures to be taken concerning health and safety at work.

3.  Appropriate measures shall be taken to ensure that workers and/or their representatives in the undertaking or establishment concerned may monitor the application of this Directive or may be involved in its application, in particular with regard to the measures determined by the employer which are referred to in paragraph 1, without prejudice to the employer's responsibility for determining those measures.

4.  Consultation and participation of workers and/or their representatives in connection with matters covered by this Directive shall take place in accordance with Article 11 of Directive 89/391/EEC.

(5)  In Article 5 paragraphs 2 and 3 are replaced by the following:"

2.  If the adjustment of her working conditions and/or working hours is not technically and/or objectively feasible the employer shall take the necessary measures to move the worker concerned to another job.

3.  If moving her to another job is not technically and/or objectively feasible the worker concerned shall be granted leave in accordance with national legislation and/or national practice for the whole of the period necessary to protect her safety or health.

(6)  The following point is added to Article 6:"

3.  pregnant women shall, in addition, not be required to perform tasks such as carrying and lifting heavy weights or tasks that are dangerous or exhausting or which pose health risks.

(7)  Article 7 is replaced by the following:"

Article 7

Night work and overtime

1.  Member States shall take the necessary measures to ensure that workers within the meaning of Article 2 are not obliged to perform night work and are not obliged to work overtime:

2.  The measures referred to in paragraph 1 must entail the possibility, in accordance with national legislation and/or national practice, of:

3.  Workers wishing to be exempted from night work shall, in accordance with rules laid down by the Member States, inform their employer and, in the case referred to in paragraph 1(b), submit a medical certificate to their employer.

4.  For single parents and parents of children with severe disabilities, the periods referred to in paragraph 1 may be extended in accordance with the procedures laid down by the Member States.

(8)  Article 8 is replaced by the following:"

Article 8

Maternity leave

1.  Member States shall take the necessary measures to ensure that workers within the meaning of Article 2 are entitled to a continuous period of maternity leave of at least 20 weeks allocated before and/or after confinement.

2.  With respect to the last four weeks of the period referred to in paragraph 1, a scheme of family-related leave available at national level may be considered to be maternity leave for the purposes of this Directive, on condition that it provides overall protection to workers, within the meaning of Article 2 of this Directive, that is equivalent to the level laid down in this Directive. In that case, the total period of leave granted must exceed the period of parental leave provided for in Council Directive 96/34/EC of 3 June 1996 on the framework agreement on parental leave concluded by UNICE, CEEP and the ETUC*.

The remuneration for the last four weeks of maternity leave shall be no lower than the allowance referred to in Article 11(5) or, alternatively, it may be the average of the remuneration for the 20 weeks of maternity leave, which shall be at least 75 % of the last monthly salary or of the average monthly salary as stipulated according to national law, subject to any ceiling laid down under national legislation. The Member States may lay down the periods over which the average monthly salaries are calculated.

Where a Member State has made provision for a period of maternity leave of at least 18 weeks, that Member State may decide that the last two weeks are met through paternity leave available at national level, with the same level of pay.

3.  The maternity leave stipulated in paragraph 1 shall include compulsory fully paid maternity leave of at least six weeks after childbirth, without prejudice to existing national laws which provide for a period of compulsory maternity leave before childbirth. The six-week period of compulsory maternity leave shall apply to all working women regardless of the number of days worked prior to confinement. The Member States shall take the necessary measures to ensure that workers within the meaning of Article 2 are entitled to choose freely the time at which the non-compulsory portion of the maternity leave is taken, before or after childbirth, without prejudice to existing national laws and/or practices, which provide a maximum number of weeks prior to the childbirth.

4.  This period may be shared with the father, in accordance with the legislation of the Member State concerned if the couple agrees and so requests.

5.  To protect the health of both mother and child, Member States shall take the necessary measures to ensure that workers can decide freely and without compulsion whether or not to take the non-compulsory portion of maternity leave before childbirth.

6.  The worker must indicate her chosen period of the non-compulsory portion of the maternity leave no later than one month before the date of commencement of such leave.

7.  For multiple births the compulsory portion of maternity leave referred to in paragraph 3 shall be increased for each additional child in accordance with national legislation.

8.  The prenatal portion of maternity leave shall be extended by any period elapsing between the presumed date and the actual date of childbirth, without the remaining portion of leave being reduced.

9.  Member States shall take the necessary measures to ensure that additional leave on full pay is granted in the case of premature childbirth, children hospitalised at birth, children with disabilities, mothers with disabilities, and multiple births. The duration of the additional leave should be proportionate and allow the special needs of the mother and the child/children to be accommodated. The total period of maternity leave shall be extended by at least eight weeks after the birth in the case of the birth of a disabled child. Member States shall also ensure an additional period of leave of six weeks in the case of a stillbirth.

10.  Member States shall ensure that any period of sick leave due to illness or complications arising out of pregnancy occurring four weeks or more before confinement does not impact on the duration of maternity leave.

11.  Member States shall protect mothers' and fathers' rights by ensuring that there are special working conditions so as to help the parents of children with disabilities.

12.  Member States shall adopt suitable measures for the recognition of postnatal depression as a serious illness, and shall support awareness campaigns aimed at disseminating accurate information on the illness and correcting the prejudices and possible stigmatisation which it can still attract.

__________________

* OJ L 145, 19.6.1996, p. 4.

(9)  The following Articles are inserted:"

Article 8a

Paternity leave

1.  Member States shall take the necessary measures to ensure that workers whose life partner has recently given birth are entitled to a continuous period of non-transferable paid paternity leave of at least two weeks, granted on an equivalent basis – except with regard to its duration – to maternity leave, to be taken after the confinement of the worker's spouse or partner during the period of the maternity leave.

Member States that have not already introduced non-transferable paid paternity leave, granted on an equivalent basis – except with regard to its duration – to maternity leave to be taken during the period of the maternity leave on a compulsory basis for a continuous period of at least two weeks after the confinement of the worker's spouse or partner, are strongly encouraged to implement it in order to promote equal participation of both parents in balancing family rights and responsibilities.

2.  Member States shall take the necessary measures to ensure that workers whose life partner has recently given birth are granted a period of special leave including the unused portion of maternity leave in the case of death or physical incapacity of the mother.

Article 8b

Adoption leave

Member States shall take the necessary measures to ensure that the provisions of this Directive concerning maternity and paternity leave also apply in the event of adoption of a child of less than 12 months old.

(10)  Article 10 is replaced by the following:"

Article 10

Prohibition of dismissal

(11)  Article 11 is replaced by the following:"

Article 11

Employment rights

(12)  The following Articles are inserted:"

Article 11a

Time off for breastfeeding

1.  A mother who is breastfeeding her child shall be entitled to a period of leave for that purpose that shall be taken in two separate periods, each of which shall be of one hour, unless another arrangement has been agreed with the employer, without losing any privileges connected to her employment.

2.  In the case of multiple births, the leave referred to in paragraph 1 shall be increased by 30 minutes for each additional child.

3.  In the case of part-time work, the leave referred to in paragraph 1 shall be reduced in proportion to the normal working hours, but shall not be less than 30 minutes.

4.  In the case referred to in paragraph 3, the leave shall be taken for a period not exceeding one hour and, where applicable, for a second period to cover the remaining duration, unless another arrangement has been agreed with the employer.

Article 11b

Prevention of discrimination and gender mainstreaming

Member States shall, in accordance with their national traditions and practice, take adequate measures to promote dialogue between the social partners at appropriate levels with a view to putting in place effective measures to prevent discrimination against women on the grounds of pregnancy, maternity or adoption leave.

Member States shall encourage employers through collective agreements or practice, to take effective measures to prevent discrimination against women on the grounds of pregnancy, maternity or adoption leave.

Member States shall actively take into account the objective of equality between men and women when formulating and implementing laws, regulations, administrative provisions, policies and activities in the areas referred to in this Directive.

▌

(13)  The following Articles are inserted:"

Article 12a

Victimisation

Member States shall introduce into their national legal systems such measures as are necessary to protect individuals including witnesses from any adverse treatment or adverse consequence resulting from a complaint they have lodged or proceedings they have initiated with the aim of enforcing compliance with the rights granted under this Directive.

Article 12b

Penalties

Member States shall lay down the rules on penalties applicable to breaches of national provisions adopted pursuant to this Directive, and shall take all measures necessary to ensure that they are applied. Penalties may comprise payment of compensation ▌ and must be effective, proportionate and dissuasive.

Article 12c

Equality body

Member States shall ensure that the body or bodies designated under Article 20 of Directive 2006/54/EC for the promotion, analysis, monitoring and support of equal treatment of all persons without discrimination on grounds of sex shall be competent in addition for issues falling within the scope of this Directive, where these issues pertain primarily to equal treatment and not solely to the worker's health and safety.

Article 2

1.  Member States may introduce or maintain provisions which are more favourable to workers than those laid down in this Directive.

2.  Member States may adopt preventive and monitoring measures for the protection and safety at work of pregnant workers and workers who have recently given birth.

3.  Implementation of this Directive shall under no circumstances constitute grounds for reducing the level of protection in the fields covered by this Directive.

4.  The provisions laid down in this Directive shall be incorporated into the text of collective work contracts in the Member States.

Article 3

1.  Member States shall bring into force the laws, regulations and administrative provisions necessary to comply with this Directive by ...(10). They shall forthwith communicate to the Commission the text of those provisions and a correlation table between those provisions and this Directive.

2.  The measures thus adopted by the Member States shall contain a reference to this Directive or be accompanied by such reference on the occasion of their official publication. Member States shall determine how such reference is to be made.

Article 4

1.  Member States and national equality bodies shall communicate to the Commission, by ...(11) and every three years thereafter, all the information necessary for the Commission to draw up a report to the European Parliament and the Council on the application of Directive 92/85/EEC as amended by this Directive.

2.  The Commission's report shall take account, as appropriate, of the viewpoints of the social partners and relevant non-governmental organisations. In accordance with the principle of gender mainstreaming, the report shall inter alia provide an assessment of the impact on women and men of the measures taken. It shall also include an impact study analysing the social and economic effects, in the Union as a whole, of a further increase in the duration of maternity leave and of the implementation of paternity leave. In the light of the information received, the report shall, where necessary, include proposals to revise and update Directive 92/85/EEC as amended by this Directive.

Article 5

This Directive shall enter into force on the day of its publication in the Official Journal of the European Union.

Article 6

This Directive is addressed to the Member States.

Done at ,

For the European Parliament For the Council

The President The President

(1) OJ C 277, 17.11.2009, p. 102. (2) OJ C 277, 17.11.2009, p. 102. (3) Position of the European Parliament of 20 October 2010. (4) ECR 2008, I-01017. (5) OJ L 204, 26.7.2006, p. 23. (6) OJ L 348, 28.11.1992, p. 1. (7) OJ L 145, 19.6.1996, p. 4. (8) OJ C 218, 31.7.2000, p. 5. (9) OJ L 269, 5.10.2002, p. 15. (10) * Two years after entry into force of this Directive. (11) * Three years after entry into force of this Directive.

European Parliament legislative resolution of 20 October 2010 on the proposal for a directive of the European Parliament and of the Council on combating late payment in commercial transactions (recast) (COM(2009)0126 – C7-0044/2009 – 2009/0054(COD))

P7_TA(2010)0374 A7-0136/2010

(Ordinary legislative procedure – recast)

The European Parliament,

–  having regard to the Commission proposal to the European Parliament and the Council (COM(2009)0126),

–  having regard to Article 251(2) and Article 95 of the EC Treaty, pursuant to which the Commission submitted the proposal to Parliament (C7-0044/2009),

–  having regard to the Communication from the Commission to the European Parliament and the Council entitled ‘Consequences of the entry into force of the Treaty of Lisbon for ongoing interinstitutional decision-making procedures’ (COM(2009)0665),

–  having regard to Article 294(3) and Article 114 of the Treaty on the Functioning of the European Union,

–  having regard to the opinion of the European Economic and Social Committee of 17 December 2009(1);

–  having regard to the Interinstitutional Agreement of 28 November 2001 on a more structured use of the recasting technique for legal acts(2),

–  having regard to the letter of 18 May 2010 from the Committee on Legal Affairs to the Committee on the Internal Market and Consumer Protection in accordance with Rule 87(3) of its Rules of Procedure,

–  having regard to the undertaking given by the Council representative by letter of 29 September 2010 to approve Parliament's position, in accordance with Article 294(4) of the Treaty on the Functioning of the European Union,

–  having regard to Rule 87 and 55 of its Rules of Procedure,

–  having regard to the report of the Committee on the Internal Market and Consumer Protection and the opinions of the Committee on Legal Affairs and of the Committee on Industry, Research and Energy (A7-0136/2010),

A.  whereas, according to the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission, the proposal in question does not include any substantive amendments other than those identified as such in the proposal and in the opinion of the Consultative Working Party and whereas, as regards the codification of the unchanged provisions of the earlier acts together with those amendments, the proposal contains a straightforward codification of the existing texts, without any change in their substance,

1.  Adopts its position at first reading hereinafter set out, taking into account the recommendations of the Consultative Working Party of the legal services of the European Parliament, the Council and the Commission;

2.  Calls on the Commission to refer the matter to Parliament again if it intends to amend the proposal substantially or replace it with another text;

3.  Instructs its President to forward its position to the Council, to the Commission and to the national parliaments.

Position of the European Parliament adopted at first reading on 20 October 2010 with a view to the adoption of Directive 2011/.../EU of the European Parliament and of the Council on combating late payment in commercial transactions (Recast)

(As an agreement was reached between Parliament and Council, Parliament's position corresponds to the final legislative act, Directive 2011/7/EU.)

(1) OJ C 255, 22.9.2010, p. 42. (2) OJ C 77, 28.3.2002, p. 1.

European Parliament resolution of 20 October 2010 on the role of minimum income in combating poverty and promoting an inclusive society in Europe (2010/2039(INI))

P7_TA(2010)0375 A7-0233/2010

The European Parliament,

–  having regard to Articles 4, 9, 14, 19, 151 and 153 of the Treaty on the Functioning of the European Union,

–  having regard to the UN Convention on the Elimination of All Forms of Discrimination against Women (CEDAW) adopted in 1979,

–  having regard to the 1948 Universal Declaration of Human Rights, reconfirmed during the 1993 World Conference on Human Rights, in particular Articles 3, 16, 18, 23, 25, 26, 27 and 29,

–  having regard to the 1966 United Nations International Covenant on Economic, Social and Cultural Rights,

–  having regard to the Millennium Development Goals defined by the United Nations in 2000, in particular to eradicate extreme poverty and hunger (Goal 1), achieve universal primary education (Goal 2) and promote gender equality (Goal 3),

–  having regard to International Labour Organization (ILO) Conventions Nos 26 and 131 on minimum wage fixing and Nos 29 and 105 on the abolishment of forced labour,

–  having regard to the ILO Global Jobs Pact,

–  having regard to the Decent Work Agendas of the United Nations and ILO,

–  having regard to the Charter of Fundamental Rights of the European Union, in particular its provisions on social rights,

–  having regard to Articles 34, 35 and 36 of the Charter of Fundamental Rights of the European Union, which specifically define the right to social and housing assistance, a high level of human health protection and access to services of general economic interest,

–  having regard to the ILO report ‘A global alliance against forced labour. Global report under the follow-up to the ILO Declaration on Fundamental Principles and Rights at Work. Report of the Director-General, 2005’,

–  having regard to Council Recommendation 92/441/EEC of 24 June 1992 on common criteria concerning sufficient resources and social assistance in social protection systems (Recommendation on minimum income)(1),

–  having regard to Council Recommendation 92/442/EEC of 27 July 1992 on the convergence of social protection objectives and policies(2),

–  having regard to the conclusions of the EPSCO Council following the 2916th meeting on 16 and 17 December 2008(3),

–  having regard to Decision No 1098/2008/EC of the European Parliament and of the Council of 22 October 2008 on the European Year for Combating Poverty and Social Exclusion (2010)(4),

–  having regard to its resolution of 6 September 2006 on a European Social Model for the future(5),

–  having regard to its resolution of 9 October 2008 on promoting social inclusion and combating poverty, including child poverty, in the EU(6) and the corresponding report of the Committee on Employment and Social Affairs and the opinion of the Committee on Women's Rights and Gender Equality (A6-0364/2008),

–  having regard to its resolution of 6 May 2009 on the renewed social agenda(7),

–  having regard to the Commission recommendation of 3.October 2008 on the active inclusion of people excluded from the labour market and to its resolution of 6 May 2009 on the active inclusion of people excluded from the labour market(8),

–  having regard to its Written Declaration No 0111/2007 of 22 April 2008 on ending street homelessness(9),

–  having regard to the Commission communication of 3 March 2010 entitled ‘Europe 2020: a strategy for a smart, sustainable and inclusive growth’ (COM(2010)2020),

–  having regard to the Commission proposal of 27 April 2010 for a Council decision on guidelines for the employment policies of the Member States (COM(2010)0193),

–  having regard to Rule 48 of its Rules of Procedure,

–  having regard to the report of the Committee on Employment and Social Affairs (A7-0233/2010),

A.  whereas the European Commission's Social Agenda 2005-2010 proposed to designate 2010 as the ‘European Year for Combating Poverty and Social Exclusion’, in order to reaffirm and strengthen the political commitment of the EU at the start of the Lisbon Strategy to making ‘a decisive impact on the eradication of poverty’,

B.  whereas poverty and social exclusion are violations of human dignity and fundamental human rights, and the central objective of income support schemes must be to lift people out of poverty and enable them to live in dignity,

C.  whereas, despite the economic prosperity and all the statements on eliminating poverty, social inequalities have worsened and, at the end of 2008, 17% of the population (i.e. around 85 million people) were living below the poverty threshold, after social transfers(10), while in 2005 the figure was 16% and in 2000 it was 15% in the EU-15,

D.  whereas the at-risk-of-poverty rate for children and young people up to 17 years is higher than for the total population; whereas it reached 20% in the EU-27 in 2008, with the highest rate being 33%,

E.  whereas elderly people also face a higher risk of poverty than the general population; whereas the at-risk-of-poverty rate for people aged 65 years and over stood at 19% in the EU-27 in 2008, against figures of 19% in 2005 and 17% in 2000,

F.  whereas the consistently higher rate of precarious employment and low wages in some sectors means that the percentage of workers at risk of poverty is stagnating at a high level; whereas, in 2008, the at-risk-of-poverty rate for those in employment was 8% on average in the EU-27, while in 2005 the figure was 8% and in 2000 it was 7% in the EU-15,

G.  whereas in Recommendation 92/441/EEC of 24 June 1992 the Council recommends Member States to recognise the basic right of a person to sufficient resources and social assistance to live in a manner compatible with human dignity; whereas in Recommendation 92/442/EEC of 27 July 1992 the Council recommends that Member States guarantee a decent standard of living; whereas in the conclusions of 17 December 1999 the Council endorsed promoting social inclusion as one of the objectives of modernising and improving social protection,

H.  whereas women represent an important segment at risk of poverty, due to unemployment, non-shared caring responsibilities, precarious and low-paid jobs, wage discrimination and lower pensions,

I.  whereas the risk of falling into extreme poverty is greater for women than for men; whereas the persistent trend towards feminisation of poverty in European societies demonstrates that the current framework of social protection systems and the wide range of social, economic and employment policies in the Union are not designed to meet women's needs or to address the differences in women's work; whereas poverty among women and their social exclusion in Europe require specific, multiple and gender-specific policy responses,

J.  whereas the risk of falling into extreme poverty is greater for women than for men, particularly in old age, because social security systems are often based on the principle of continuous remunerated employment; whereas an individualised right to a poverty-preventing minimum income should not be conditional on employment-related contributions,

K.  whereas youth unemployment has risen to unprecedented levels, reaching 21.4% in the European Union, ranging from 7.6% in the Netherlands to 44.5% in Spain and 43.8% in Latvia, and apprenticeships and internships offered to young people are often unpaid or poorly remunerated,

L.  whereas one in five under-25s in the EU are unemployed, while workers aged over 55 are the European citizens most affected by unemployment and also have to face the specific and grave problem of the decreasing likelihood of finding a job as they become older,

M.  whereas the financial and economic crisis has lead to a shrinking supply of jobs, estimates pointing to more than 5 million jobs lost since September 2008, as well as increasing precarity,

N.  whereas there are no official European data on situations of extreme poverty such as homelessness, and it is therefore difficult to follow current trends,

O.  whereas the European Year for Combating Poverty should provide an opportunity to raise awareness of poverty and the resulting social exclusion and improve policy responses to such exclusion, and it should promote active inclusion, an adequate income, access to quality services and supportive approaches for decent work, which requires a fair redistribution of wealth and necessitates measures and policies ensuring effective economic and social cohesion, at European Union level and among European regions, and whereas a minimum income can provide a proper safety net for marginalised and vulnerable people,

P.  whereas the objectives and guiding principles of the European Year for Combating Poverty are recognition of rights, shared responsibility and participation, cohesion, commitment and concrete action,

Q.  whereas the economic and financial climate in the EU-27 has to be correctly assessed in order to encourage Member States in establishing a minimum income threshold, that would help the augmentation of living standards and still foster competitive behaviour,

R.  whereas the European Union has committed to achieving the UN Millennium Development Goals and complying with the Resolution proclaiming the Second United Nations Decade for the Eradication of Poverty (2008-2017),

S.  whereas account should be taken of the multidimensional nature of poverty and social exclusion, the existence of particularly vulnerable and deprived population groups (children, women, elderly people, people with disabilities and others), which also include immigrants, ethnic minorities, large or single-parent families, the chronically ill and the homeless, as well as the need to incorporate, in other European policies, measures and instruments for preventing and combating poverty and social exclusion; whereas guidelines need to be established for Member States with a view to including them in national policies, with a guarantee of quality social security and social protection systems and universal access to accessible public infrastructure and high-quality services of general interest, working conditions and jobs that are decent and high-quality, with rights, and a poverty-preventing guaranteed minimum income that enables people to take part in social, cultural and political life and to live with dignity,

T.  whereas the impact of the extremely high poverty rate is not restricted to social cohesion within Europe but also affects our economy, since excluding large parts of our society on a permanent basis weakens the competitiveness of our economy and increases the pressure on our public budgets,

U.  whereas a global objective needs to be established, particularly in the Europe 2020 strategy, prioritising economic, social and territorial cohesion and the protection of fundamental human rights, which implies a balance between economic, employment, social, regional and environmental policies and a fair redistribution of income and wealth, taking account of dramatic changes in dependency rates, whence the need to draw up social impact studies for all decisions and to apply the horizontal social clause contained in the Treaty on the Functioning of the European Union (Article 9),

V.  whereas respect for human dignity is one of the founding principles of the European Union, whose action is intended to promote full employment and social progress, to combat social exclusion and discrimination and to promote justice and social protection,

W.  whereas the application, increase and better use of structural funds needs to be guaranteed in relation to poverty prevention, social inclusion and the creation of high-quality, barrier-free jobs with rights,

X.  whereas the role of social protection systems is to ensure the level of social cohesion needed for development guaranteeing social inclusion and mitigating the social repercussions of the financial crisis, which implies a national poverty-preventing individually guaranteed minimum income, improving the level of skills and education of those people excluded from the labour market due to market competitive pressures, and guaranteeing equal opportunities on the labour market and in the exercise of fundamental rights,

Y.  whereas introducing and strengthening minimum income schemes is an important and effective way to overcome poverty by supporting social integration and access to the labour market and allowing people to have a decent living,

Z.  whereas minimum income schemes are an important tool in order to ensure security for people needing to overcome the consequences of social exclusion and unemployment and support access to the labour market; whereas such minimum income schemes play a relevant role in redistributing wealth and ensuring solidarity and social justice and, especially in times of crisis, they play a counter-cyclical role by providing additional resources to strengthen demand and consumption in the internal market,

AA.  whereas, according to a recent Eurobarometer survey of attitudes of EU citizens to poverty, the vast majority (73%) consider that poverty is a widespread problem in their country, 89% want urgent action by their government to tackle the problem and 74% expect the EU to also play an important role in this context,

AB.  having regard to the painful social effects of the economic crisis, which has caused over 6 million European citizens to lose their jobs in the last two years,

AC.  having regard to the gravity of the economic and social crisis and its impact in terms of growing poverty and exclusion and rising unemployment (from 6.7% at the beginning of 2008 to 9.5% at the end of 2009), with one-third of the jobless being affected by long-term unemployment, a situation that is worse in the more economically vulnerable Member States,

AD.  whereas certain Member States are under pressure from the Council and Commission and from international bodies such as the IMF to undertake the short-term reduction of their budget deficits, which have been worsened by the crisis, and to make cuts in spending, including social expenditure, thus undermining the welfare state and exacerbating poverty,

AE.  having regard to increasing social inequality in certain Member States, the result above all of economic inequality in terms of income and wealth distribution, labour market inequalities, social insecurity, and unequal access to the social functions of the state such as welfare, health, education, the legal system, etc,

AF.  having regard to the application of the EU's policy for social inclusion, and in particular the objectives and European programme adopted under the Lisbon strategy at the beginning of the 2000 decade, with the implementation of the open method of coordination and the common objectives to be achieved under the national action plans,

AG.  whereas most of the Member States now have large numbers of homeless, thanks to diverse factors, and this calls for specific measures with a view to those people's social integration,

1.  Highlights the need for concrete measures to eradicate poverty and social exclusion by exploring ways of reintegrating people into the labour market, ensuring a fair redistribution of income and wealth (by guaranteeing an adequate income), thereby giving genuine meaning and content to the European Year for Combating Poverty and also ensuring that the achievement of the Millennium Development Goals leaves a strong political legacy, including guaranteeing throughout the European Union poverty-preventing and socially inclusive minimum income schemes based on the Member States' various practices, collective agreements or legislation, and working actively to promote adequate income and social protection systems; encourages Member States to take a fresh look at policies to guarantee an adequate income, given that combating poverty begins with the creation of decent, sustainable jobs for groups at a disadvantage on the labour market; takes the view that every worker should have a decent living wage; takes the view that welfare policy must therefore go hand-in-hand with an active labour market policy;

2.  Draws attention to the fact that the recent economic slowdown, with rising unemployment and fewer job opportunities, puts many people at risk of poverty and social exclusion, which is particularly the case in some Member States that suffer from long-term unemployment or inactivity;

3.  Demands that real progress be made on the adequacy of minimum income schemes, so as to be capable of lifting every child, adult and older person out of poverty and delivering on their right to have a decent living;

4.  Stresses the differences in various areas (health, housing, education, income and employment) among the social groups living in poverty, calls on the Commission and the Member States to take those differences into consideration in their targeted measures, and emphasises that one of the most effective ways to reduce poverty is to make the labour market accessible to all;

5.  Highlights the need to attach particular importance to lifelong learning programmes as a basic tool with which to combat poverty and social exclusion, by boosting employability and access to knowledge and the labour market; considers it necessary to provide incentives for increased participation in lifelong learning by workers, unemployed people and all vulnerable social groups, and to take effective action against the factors that lead people to drop out, as well as improving the level of professional qualifications and acquisition of new skills, which may lead to faster reintegration in the labour market, increase productivity and help people to find a better job;

6.  Highlights the need for action at Member States level with a view to establishing a threshold for minimum income, based on relevant indicators, that will guarantee social-economic cohesion, reduce the risk of uneven levels of remuneration for the same activities and lower the risk of having poor populations throughout the European Union, and calls for stronger recommendations from the European Union regarding these types of actions;

7.  Emphasises that employment must be viewed as one of the most effective safeguards against poverty and, consequently, that measures should be adopted to encourage the employment of women and the setting of qualitative objectives for the jobs that are offered;

8.  Highlights the need for action at both European and national level to protect citizens and consumers against unfair terms relating to the repayment of loans and credit cards, and to lay down conditions governing access to loans aimed at preventing households from falling into excessive debt and hence into poverty and social exclusion;

9.  Stresses the multidimensional nature of poverty and social exclusion, and highlights the need to ensure the mainstreaming of social objectives and the importance of the social dimension and the social sustainability of macroeconomic policies; points out that social objectives must be an integral part of the crisis exit strategy and of the Europe 2020 strategy and economic, social and territorial cohesion, and that this means ensuring a cross-cutting social guideline and effective social impact assessment which ensure the redefinition of priorities and policies such as monetary, labour, social and macro-economic policies, including the stability and growth pact, competition policies, internal market policies, and budgetary and fiscal policies; points out that those policies must not hinder social cohesion and must ensure the implementation of the relevant measures and the promotion of equal opportunities with the aim of finding a stable way out of the crisis, ensuring a return to fiscal consolidation and undertaking the reforms the economy needs for a return to growth and job creation; calls for the adoption of effective policies to support those Member States whose need is greatest, through the appropriate mechanisms;

10.  Considers that job creation must be a priority for the Commission and the Member State governments, as a first step towards reducing poverty;

11.  Considers that minimum income schemes should be embedded in a strategic approach towards social integration, involving both general policies and targeted measures - in terms of housing, health care, education and training, social services - helping people to recover from poverty and themselves to take action towards social inclusion and access to the labour market; believes that the real objective of minimum income schemes is not simply to assist but mainly to accompany the beneficiaries in moving from situations of social exclusion to active life;

12.  Emphasises the need, when the levels of minimum incomes are determined, for due account to be taken of the fact that workers have dependants, in particular children, the aim being to break the vicious circle of child poverty; takes the view, further, that the Commission should draw up an annual report on progress in the fight against child poverty;

13.  Insists on the need to revise the austerity policies being imposed in some Member States to fight the crisis, and stresses the importance of effective action for solidarity, including reinforcement, mobility, anticipation of transfers and reduction of cofinancing in respect of budgetary funding to create decent jobs, support productive sectors, fight poverty and social exclusion and avoid new forms of dependence and increased debt;

14.  Believes that introducing minimum income schemes in all EU Member States - consisting of specific measures supporting people whose income is insufficient with a funding supply and facilitated access to services - is one of the most effective ways to combat poverty, guarantee an adequate standard of living and foster social integration;

15.  Takes the view that adequate minimum income schemes must set minimum incomes at a level equivalent to at least 60% of median income in the Member State concerned;

16.  Stresses the need for an evaluation of social inclusion policy, the application of the open method of coordination, fulfilment of the joint objectives and the national action plans in the context of the development of poverty, with a view to more committed action at European and national level and fighting poverty by means of policies that are more inclusive and coherent and better articulated, aimed at eradicating absolute poverty and child poverty by 2015, as well as substantially reducing relative poverty;

17.  Reiterates that, however important, minimum income schemes need to be accompanied by a coordinated strategy at national and European level focusing on broad actions and specific measures such as active labour market policies for those groups furthest away from the labour market, education and training for the least skilled people, minimum salaries, social housing policies and the provision of affordable, accessible and high-quality public services;

18.  Calls for the promotion of social integration and inclusion, in order to guarantee effective protection of fundamental human rights, and clear commitments to draw up EU and national policies to combat poverty and social exclusion; considers it necessary to ensure better access, on a universal basis, which is free from physical and communication barriers, to the labour market, public health services, education (from pre-school education to completion of undergraduate studies), vocational education and training, public housing, energy provision and social protection; takes the view that jobs should be high-quality and barrier-free with rights; believes that wages must be decent and that pensions must include a basic old-age allowance which ensures that people who have worked all their lives enjoy a dignified retirement; states that minimum income schemes for everyone must guarantee freedom from poverty and ensure social, cultural and political inclusion in keeping with national practices, collective bargaining and national legislation; notes, further, that in the long term the more the Member States invest in these various policies the less need there will be for a system based on a minimum household income; points out that such measures should be adopted in strict compliance with the principle of subsidiarity and with different practices, collective bargaining and national law in the Member States; takes the view that only in this way can each individual's right to participate in social, political and cultural life be guaranteed;

19.  Draws attention to the needs of young people who encounter specific problems in finding their place in economic and social life and run the risk of leaving school at an early age; calls on the Member States to ensure that combating youth unemployment is made a specific objective, with its own priorities, involving specific actions and professional training measures, support for Community programmes (Lifelong Learning, Erasmus Mundus) and entrepreneurship incentives;

20.  Points out that the school drop-out rate and restricted access to higher and university-level education are basic factors in the emergence of a high long-term unemployment rate and represent a blight on social cohesion; takes the view that, since these two problems figure among the priority objectives set by the Commission in the 2020 Strategy, a basis will have to be created for the introduction of specific actions and policies on young people's access to education through scholarships, student grants, student loans and initiatives to make school education more dynamic;

21.  Takes the view that the Commission should study the impact which a legislative proposal it might submit concerning the introduction of an adequate minimum income at European level would have in each Member State; suggests, in particular, that any such study should examine the difference between the adequate minimum income and the minimum wage in the Member State concerned and the implications for jobseekers of the introduction of an adequate minimum income;

22.  Emphasises the importance of introducing rules on the level of unemployment benefits which serve to keep recipients out of poverty and of urging the Member States to take measures to encourage people returning to the labour market to take unpopular jobs, for example by facilitating mobility within the European Union;

23.  Stresses that investment in minimum income schemes constitutes a key element in the prevention and reduction of poverty, that even in times of crisis, minimum income schemes should not be regarded as a cost factor but as a core element in combating the crisis, and that early investments to combat poverty bring a major return in reducing long-term costs for society;

24.  Emphasises the role of social protection, in particular in the form of sickness insurance, family allowances, pensions and disability allowances, and calls on the Member States to pay special attention to the most vulnerable members of society by guaranteeing them a minimum set of rights even if they are unemployed;

25.  Maintains that having sufficient resources and benefits to live a decent life is a fundamental human right to be enjoyed within the wider context of comprehensive, coherent measures to combat social exclusion and of an active strategy to promote social inclusion; calls on the Member States to adopt national policies to foster the economic and social integration of the persons concerned;

26.  Points to the increasing number of working poor and to the need to tackle this new challenge by combining different instruments; demands that a living wage must always be above the poverty threshold, and that workers who for multiple reasons remain below the poverty threshold should receive top-ups that are unconditional and easy to take up; points to positive experience in the United States with negative income tax to lift low-wage workers above the poverty threshold;

27.  Notes that, in its communication entitled ‘Europe 2020: a strategy for a smart, sustainable and inclusive growth’, the Commission proposes setting five headline targets for the EU, one of which is to reduce the number of people at risk of poverty by 20 million; points out that this target falls short of the initial ambitions of the Lisbon Strategy (to overcome poverty), which, regrettably, have not been achieved; believes that poverty and social exclusion must be eradicated by credible, concrete and binding measures; believes that this target is too low and that the objective of a poverty-free Europe must not be abandoned; takes the view that, in order to achieve this goal, appropriate measures should be taken and this absolute target should be combined with a target for reducing poverty in each Member State, in order to encourage every Member State to contribute to the task of achieving it, and should be made more credible with appropriate measures, particularly as regards the effectiveness of policies targeting those in need; believes that this target should be achieved through concrete and appropriate measures, in particular through the introduction of minimum income schemes by all EU Member States;

28.  Believes that priority should be given to fighting social inequality, especially in the context of economic inequality in terms of income and wealth distribution, labour market inequalities, social insecurity, and unequal access to the social functions of the state such as welfare, health, education, the legal system, etc.;

29.  Calls on the Council and the Member States to base the Europe 2020 strategy headline target to tackle poverty on the relative poverty indicator (60% of the median income threshold), as endorsed by the Laeken European Council in December 2001, because this indicator sets the reality of poverty within the context of each Member State, since it reflects an understanding of poverty as a relative condition;

30.  Calls upon Member States to translate the EU headline target on poverty in to concrete and achievable national targets on priority issues of the EU social inclusion strategy, such as an end to street homelessness by 2015 in accordance with Written Declaration No 0111/2007;

31.  Believes that particular attention and additional measures are needed for the homeless on the part of both the Member States and the Commission, with a view to their full integration into society by 2015, which will require collecting comparable data and reliable statistics at Community level, as well as their annual publication, together with an account of the progress achieved and the objectives defined in the respective national and Community strategies for fighting poverty and social exclusion;

32.  Regards it as the duty of every Member State to take all appropriate measures to protect their citizens against extreme financial vulnerability by ensuring that they do not take on excessive levels of debt, in particular in the form of bank loans, for example by taxing the banks and financial institutions which agree to lend to persons who are not creditworthy;

33.  Considers that an explicit commitment must be made by Member States to implement active inclusion: reducing conditionality, investing in supportive activation, defending adequate minimum income and preserving social standards by outlawing cuts to key public services so that the poor will not pay for the crisis;

34.  Believes that the various experiments with minimum incomes and with a guaranteed basic income for everyone, accompanied by additional social integration and protection measures, show that these are effective ways of combating poverty and social exclusion and providing a decent life for all; therefore calls on the Commission to prepare an initiative to support further experiments in the Member States, taking into account and promoting best practices, and ensuring various individually guaranteed poverty-preventing adequate minimum and basic income models as a means of fighting to eradicate poverty and guarantee social justice and equal opportunities for every individual whose need can be established on the basis of the relevant regional yardstick, in keeping with the subsidiarity principle, and without calling into question the specific situations in each Member State; takes the view that this Commission initiative should lead to the drawing-up of an action plan, designed to accompany the implementation of a European initiative on minimum income in the Member States, in accordance with different national practices, collective bargaining and Member States' legislation, in order to achieve the following objectives:

35.  Emphasises that an adequate minimum income is fundamental to a dignified life and that without an adequate minimum income and a stake in society individuals cannot develop their potential to the full and participate in the democratic shaping of society; stresses, in addition, that the fact that people earn a living wage serves to boost the economy and thus safeguard prosperity;

36.  Believes that the Commission initiative on a guaranteed minimum income should take account of Recommendation 92/441/EEC, which recognises ‘the fundamental right of the individual to sufficient resources in respect of human dignity’, while insisting that the central objective of income support schemes should be that of taking people out of poverty and allowing them to live a decent life, decent invalidity and retirement pensions being included; with this in view, recommends that the Commission consider establishing a common method for calculating a minimum survival income and a cost-of-living minimum (a ‘shopping-basket’ of goods and services), with a view to ensuring the availability of comparative measurements of poverty levels and establishing means of social intervention;

37.  Calls on Member States to take urgent action to improve take-up of benefits and monitor levels of non-take-up and its causes, recognising that cases of non-take-up account for between 20-40% of benefits according to the OECD, by increasing transparency, by providing more effective information and advice facilities, by simplifying procedures, and by putting in place effective measures and policies to fight stigma and discrimination associated with minimum income recipients;

38.  Stresses the importance of the existence of unemployment benefit that guarantees a decent standard of living for beneficiaries, and also the need to reduce the length of absences from work, inter alia by making state employment services more efficient;

39.  Stresses the need to adopt rules on insurance so as to establish a link between the minimum pension paid and the corresponding poverty threshold;

40.  Criticises Member States where minimum income schemes do not meet the relative poverty threshold; reaffirms its demand to Member States to remedy this situation as soon as possible; demands that good and bad practices be addressed by the Commission in the evaluation of national action plans;

41.  Points to major age discrimination regarding minimum income schemes, such as setting the minimum income for children below the poverty threshold or excluding young people from minimum income schemes due to a lack of social security contributions; stresses that this undermines the unconditionality and decency of minimum income schemes;

42.  Stresses the urgent need to define and apply appropriate economic and social indicators in various areas, such as health, housing, energy provision, social and cultural inclusion, mobility, education, income (for example the Gini coefficient, which can be used to measure income gap trends), material privation, employment and social assistance services, which will allow the progress made in combating poverty and in social inclusion to be monitored and measured; states that these indicators should be presented annually on International Day for the Eradication of Poverty (17 October), should evolve as necessary and should include gender, age ranges, households, disability situations, immigration, chronic illness and various income levels (60% of median income, 50% of median income, 40% of median income) in order to take account of relative poverty, extreme poverty and the most vulnerable groups; stresses the urgent need to have EU statistical data beyond monetary indicators on situations of extreme poverty such as homelessness which are currently not covered by EU-SILC; calls for details of these socioeconomic indicators to be set out in an annual report forwarded to the Member States and the European Parliament for discussion and with a view to determining the scope for further action;

43.  Insists on the need for specific additional provisions for less-favoured groups (those with disabilities or chronic illnesses, single-parent families and families with large numbers of children) who incur additional costs, in particular related to personal assistance, use of specific facilities, medical care and social support;

44.  Calls on the Commission and the EU Member States to examine how different models of unconditional and poverty-precluding basic incomes for all could contribute to social, cultural and political inclusion, taking especially into account their non-stigmatising character and their ability to prevent cases of concealed poverty;

45.  Takes the view that, in respect of the poverty reduction policies which accompany the establishment of an adequate minimum income in the Member States, the open method of coordination should be revised in order to make for a genuine exchange of best practices among the latter;

46.  Notes that minimum income will only achieve its objective in combating poverty if it is tax-free and recommends to consider attaching the level of the minimum income to the fluctuations in utility charges;

47.  Recalls that the risk of falling into extreme poverty is greater for women than for men, given the shortcomings of the welfare systems and continuing discrimination, especially on the labour market, necessitating a whole range of specific policies which should be both gender-oriented and attentive to circumstances;

48.  Believes that poverty affecting people in employment implies inequitable working conditions and calls for efforts to change this state of affairs, through pay levels in general and minimum wage levels in particular, whether regulated by legislation or by collective bargaining, so that they can ensure a decent standard of living;

49.  Calls for the integration of people experiencing poverty (in respect of whom extra support should be given for measures to foster labour market integration) and calls on the Commission and the Member States to develop a dialogue with people in poverty, their representative organisations and networks, and the social partners; takes the view that it must be ensured that people experiencing poverty and their representative organisations are made stakeholders and provided with the financial and other resources to enable them to participate in the preparation, application and monitoring of policies, measures and indicators at European, national, regional and local levels, particularly in relation to the national reform programmes in the context of the Europe 2020 strategy and the open method of coordination on social protection and social inclusion; stresses furthermore the need to step up action against employers who illegally employ marginalised groups for less than the minimum income;

50.  Considers that sustained and extensive efforts must be made to combat poverty and social exclusion, in order to improve the situation of people at greatest risk of poverty and exclusion, such as people in precarious employment, the unemployed, single-parent families, elderly people living alone, women, disadvantaged children, ethnic minorities and people who are ill or differently-abled;

51.  Deeply regrets that some Member States appear not to have regard to Council Recommendation 92/441/EEC, which recognises the ‘basic right of a person to sufficient resources and social assistance to live in a manner compatible with human dignity’;

52.  Insists that the social partners should be fully involved in drawing up national action plans to combat poverty and setting reference targets at each level of governance;

53.  Stresses the need to plan and implement targeted interventions, through active employment policies at geographical, sectoral and business levels, and with the active involvement of the social partners, in order to boost access to the labour market for people from sectors or geographical regions with particularly high rates of unemployment;

54.  Stresses the need to focus on selected sections of the population (migrants, women, unemployed people of pre-retirement age, etc.) with the aim of improving skills, preventing unemployment and strengthening the fabric of social integration;

55.  Urges the Member States and the Commission to take measures for the integration of younger and older people into the labour market, since these are vulnerable groups that are severely affected by the lack of jobs in the present recession;

56.  Stresses that minimum income schemes must cover fuel costs to allow poor households affected by energy poverty to pay their energy bills; minimum income schemes must be calculated on the basis of realistic assessments of how much it costs to heat a home related to the specific household needs – e.g. family with children, older people and disabled persons;

57.  Points out that, while most Member States in the EU-27 have national minimum income schemes, several do not; calls on the Member States to provide for poverty-preventing guaranteed minimum income schemes for social inclusion, and urges them to exchange best practice; recognises that, where there is provision of social assistance, Member States have a duty to ensure that citizens understand and are able to obtain their entitlements;

58.  Instructs its President to forward this resolution to the Council, the Commission and the parliaments and governments of the Member States and of the candidate countries.

(1) OJ L 245, 26.8.1992, p. 46. (2) OJ L 245, 26.8.1992, p. 49. (3) Council of the European Union, Press Release 16825/08 (Presse 358), p. 18. (4) OJ L 298, 7.11.2008, p. 20. (5) OJ C 305 E, 14.12.2006, p. 141. (6) OJ C 9 E, 15.1.2010, p. 11. (7) OJ C 212 E, 5.8.2010, p. 11. (8) OJ C 212 E, 5.8.2010, p. 23. (9) OJ C 259 E, 29.10.2009, p. 19. (10) The national poverty threshold is set at 60% of the national median income, which is less than the average income.

European Parliament resolution of 20 October 2010 on the financial, economic and social crisis: recommendations concerning measures and initiatives to be taken (mid-term report) (2009/2182(INI))

P7_TA(2010)0376 A7-0267/2010

The European Parliament,

–  having regard to its decision of 7 October 2009 on setting up a special committee on the financial, economic and social crisis, and its powers, numerical composition and term of office(1), adopted under Rule 184 of its Rules of Procedure,

–  having regard to Rule 48 of its Rules of Procedure,

–  having regard to the report of the Special Committee on the Financial, Economic and Social Crisis (A7-0267/2010),

Causes

1.  Notes that the causes of the current crisis are manifold and its effects both immediate and long-term, and that several warning signs were overlooked and the scale of the crisis, as well as its impact and spillover effects, underestimated;

2.  Notes that the crisis that originated in the United States with the subprime bubble had roots that go back a long way;

3.  Notes that global imbalances, regulatory governance (regulation and supervision), and monetary policy - together with specific factors inherent in the financial system, such as the complexity and opacity of financial products, short-term featured remuneration systems and inadequate business models - are the main factors contributing to the current financial crisis;

4.  Considers that the proliferation in the financial sector of conflicts of interest, vested interests and cases of operators who are ‘too close to talk’ has in some cases aggravated the crisis;

5.  Notes that the USA's expansionist monetary policy encouraged an excess of liquidity in search of high returns and the development of domestic demand based on consumer credit, and thus household debt, as well as high government expenses financed through cheap access to capital;

6.  Notes that there has been speculative behaviour in the financial markets, with some investors taking very large risks, which was aggravated by the oligopoly in rating agencies; notes that any market economy works best when accompanied by democratically agreed, transparent, multilevel regulation accompanied by healthy ethics and morality that encourage sound financial and economic systems and do not damage the real economy;

7.  Notes that the proliferation of complex off-balance-sheet products (SPVs, CDOs, CDS, etc.) and securitization arrangements resulting from an unregulated parallel banking system has increased, rather than decreased, systemic risks; notes that establishments that concentrate on savers and financing for SMEs have proved their value;

8.  Believes that the absence of a more sustainable pattern of production, distribution and consumption in the face of climate change, the loss of biodiversity and the depletion of natural resources feeds into the root causes of the crisis;

9.  Considers that the economic and financial governance structures in place at the onset of the crisis, whether at global level, in the USA or within the European Union, lacked coherence and consistency in separating macro- from micro-prudential supervision, focussed excessively on bottom-up micro-prudential supervision of financial institutions and country-level monitoring of macroeconomic indicators, whilst neglecting the system-wide view of the financial and macroeconomic developments that would necessitate monitoring of the interconnectedness among financial institutions and among countries;

10.  Notes that globalisation has developed without the emergence or parallel evolution of global governance structures to accompany market integration, especially as regards global balances or imbalances and financial markets, and sees the G20 process as a step in the right direction, but points out that an effective representation of the EU-position at the G20 is necessary;

11.  Notes that the European Union recognised the free movement of capital as provided for in the EU Treaties in July 1990, which contributed to economic development; notes, however, that the free movement of capital was not accompanied by a harmonisation of taxes on savings, adequate cross-border regulation or supervision on a European level;

12.  Condemns the fact that the principles of the SGP were not always respected in the past and notes that substantial imbalances between the euro-zone economies have occurred;

13.  Notes the absence of proper regulation and robust supervision, and the complete lack of instruments for contingency management in the event of a banking crisis showed how much further the European Union needs to go to have in place mechanisms fit to manage the policy challenges associated with having an internal market and an integrated financial system; notes in particular the absence of a cross-border bankruptcy mechanism;

Effects

14.  Notes that the public deficit in the European Union rose from 2,3 % of GDP in 2008 to 7,5 % in 2010, and from 2 % to 6,3 % in the euro zone according to Eurostat, with the public debt-to-GDP ratio rising from 61,6 % of GDP in 2008 to 79,6 % in 2010 in the European Union and from 69,4 % to 84,7 % in the euro zone, brushing aside in two years all the efforts at budgetary consolidation made over almost two decades by some Member States; deplores this setback as it will make responding to unemployment and demographic challenges much more difficult;

15.  Considers that Europe's public finances were already in a poor state before the crisis: since the 1970s the level of Member States' public debt has gradually crept upwards under the impact of the various economic downturns the EU has experienced; notes that the cost of recovery plans, falling tax revenues and high welfare expenditure have caused both public debt and the ratio of public debt to GDP to rise in all Member States, although not to a uniform degree across the Union;

16.  Considers that the full effects of the crisis have not yet been unleashed and that a relapse, as in a double-dip recession, cannot be ruled out, particularly as regards the unemployment level;

17.  Notes that the crisis has had an impact on employment throughout the EU, although the jobless rate rose by an average of only 1,9 % across the EU-27, and that the negative impact on employment will continue as a result of the customary delay with which economic trends are mirrored in the job market; underlines that the Commission forecasts point to an EU-wide rate of unemployment of almost 11 % in 2010, which will have serious implications for the EU's labour force.

18.  Notes that the social effects of the crisis are very different depending on the Member State: whereas the unemployment rate is 10 % on average, in some countries it reaches 20 %, escalating to over 40 % of young people, which underlines the extent of the structural improvements needed in some countries;

19.  Considers that while a policy of debt reduction is important, a rapid consolidation of public finances should not be detrimental to the systems of social protection and public services when these have rightly been welcomed for the role they play as automatic stabilisers in mitigating the crisis; notes that fostering efficiency in social protection and public services can simultaneously improve economic efficiency and the quality of services; recognizes that the failure to strike the right balance could lead to sluggish growth over a long period, accompanied by persistent unemployment, and thus the inexorable erosion of Europe's global competitiveness;

20.  Notes that high levels of unemployment carry not just social costs but also high economic costs in that the unemployed cannot contribute much to domestic demand and pay fewer taxes and social security contributions; notes that this increases the burden on those working, in the form of higher taxes, and on future generations through a higher debt burden;

21.  Notes that on the basis of the figures for 2007, which are the last available and thus date back to before the crisis, there were 30 million working poor and, according to recent figures, 79 million people live below the poverty line in the European Union, and that this number has probably risen since then;

22.  Notes that, beyond unemployment, the crisis has had a multifaceted social impact, notably including some erosion of working conditions, increasing difficulties for some people to access basics needs and services, increasing homelessness, over indebtedness and financial exclusion;

23.  Notes that, as with any crisis, the current one is having negative effects on growth and employment, first affecting the most vulnerable, including young people, children and women, as well as ethnic minorities and migrants;

24.  Shares concerns about the pro-cyclical aspects of the regulatory, prudential accounting and taxation rules which amplify the fluctuations that are inherent in the functioning of the market economy;

Response

25.  Notes that the bail-out of the banking sector by governments represents only part of the costs inflicted on society by the financial crisis, while the costs of the recession and the increase in public debt will be substantial, some USD 60 trillion being lost worldwide;

26.  Notes that the crisis has led to a dramatic increase in state aid following the adoption of the temporary framework for state aid, and regrets the damaging effect this may have had on upholding a level playing field in Europe. Calls on the Commission to take a strong lead in fighting protectionism and distortion of competition;

27.  Approves the non-conventional measures put in place by the ECB and national central banks over the last two years to bail out banks in the Member States that that were at risk of bankruptcy because of unprecedented levels of toxic assets; welcomes especially the fact that guarantees on deposits were provided for clients of these banks, but stresses the need to gradually phase out these unconventional measures in order to prevent unfair competition in the banking sector;

28.  Points out that in October 2008 the European Union adopted the European Economic Recovery Plan, amounting to 1,6 % of its GDP, compared to 5 % in China and 6,55 % in the United States;

29.  Welcomes the adoption by the Ecofin Council on 10 May 2010 of the EUR 750 billion stabilisation plan, which established a financial stability mechanism to address the risks of default by sovereign borrowers, partly using Article 122 of the TFEU as the legal basis of this plan; notes the inherent democratic deficit and accountability void of the Council's rescue package decisions, which did not include consultation with the European Parliament; demands that the European Parliament be involved as co-legislator in forthcoming crisis rescue proposals and decisions;

National recovery plans

30.  Regrets the modest level of coordination among the different national recovery plans, as the multiplying effect and leveraging potential of EU-level coordination would most probably have exceeded the effect that can be reached through largely national-level planning, which carries the risk of being mutually contradictory; calls for an increase in the European dimension of future recovery plans and large-scale investments;

31.  Calls on the Commission to give a very precise report on the effectiveness of the national bank rescue packages and national and European recovery plans decided over the autumn and winter of 2008-2009 with respect to the Union's long- and short-term objectives, including a thorough analysis of the consequences of the revised state aid mechanisms adopted in response to the crisis and with regard to competition and the upholding of a level playing field in the EU, financial reform and job creation;

32.  Notes that some Member States, particularly those that received the EC balance of payments assistance, do not currently have opportunities to create real national recovery plans with elements allowing growth and employment to be stimulated, since all the options until the year 2012 are limited to public expenditure cuts, tax increases and reduction of GGD;

The future - a Europe of added value

33.  Deems it unacceptable for the Union to be the only integrated area in which the question of energy, especially the energy mix , is not regarded as a strategic issue both internally and in the context of relations with partner countries; considers that initiatives on energy need to be taken in the EU on a basis of close coordination between the Commission, the Member States and the relevant sectors of the industry in order to safeguard the supply of energy sources, such as oil and gas, to its Member States through a diversified network of energy pipelines, notably by negotiating supply contracts and organising storage capacity, as well as by funding and coordinating research and development on new energy sources as part of all relevant programmes such as the 7th Research Programme 2007-2013 and its subsequent updates;

34.  Proposes that the Commission assume full responsibility for ensuring the steering and financing of projects in the following fields:

35.  Believes that, while there may be agreement on matters of governance and on EU activity in terms of shared competence and supplementary action, the Union requires resources, especially financial resources, to pursue such a strategy;

Financial regulation and supervision

36.  Points out that the ultimate purpose of the financial system is to provide appropriate instruments for saving and for putting savings to use in the form of investment to provide support to the real economy and to promote economic efficiency, assuming part of the risk of enterprises and private households, to optimise long-term financing of pensions, and to create jobs, as done for example by regional and local retail banks; notes that this function is especially important in a situation where new means of growth are needed, entailing substantial investment in clean technologies;

37.  Emphasises that financial development must also be put to use in the cause of fairness by extending access to credit and insurance – subject to adequate safeguards – to sections of the population currently cut off from it; insists that regulatory reform in the financial sector must not be carried out for the sole purpose of ensuring financial stability, but must also reflect the aims of sustainable development;

38.  Notes that this crisis marks the limits of a system of self-regulation and over-reliance on the capacity of market participants in the financial sector and of rating agencies always to correctly assess and properly manage risks and avoid moral hazard;

39.  Welcomes the present proposals of the Basel Committee on Banking Supervision (BCBS) and the role played by the institution as such, but bearing in mind that a ‘one-size-fits-all’ approach is detrimental to financial institutions in the EU, takes the view that regulation should be timed and proposed on the basis of thorough assessments of its impact on the extent to which financial institutions serve the real economy and society; shares concerns expressed about the right level of capital requirements and the length of transition periods;

40.  Notes that transparency in both corporate and Member State financial statements is required in order to restore confidence; calls upon the Commission, therefore, to investigate the use of off-balance sheet transactions, unfunded liabilities and the proliferation of SPV and SPEs and to consider limiting their use or requiring mandatory declarations in published accounts;

41.  Notes that a major deficiency in the oversight system has become evident as a result of this crisis; calls for opportunities for regulatory arbitrage to be minimised globally through firm agreement at G20 level and within the European Union, and, where possible, to be abolished through the application of a common rule book for financial services;

42.  Believes that loopholes in regulation which allowed subsidiaries of foreign financial services to operate significant unregulated business in the EU need to be closed;

43.  Notes that there is at present insufficient international regulation of crisis management in the financial sector; calls on the Commission to come forward with concrete proposals for an EU framework for cross-border crisis management in the financial sector, taking into account initiatives taken by international bodies, such as the G20 and the IMF, in order to ensure a global level playing field;

44.  Notes that standards, notably when using fair value, are pro-cyclical in their impact on decision making, notably by financial institutions that have been over-reliant on them; notes that this fault can also be observed in some regulatory, prudential and taxation rules;

45.  Is aware of the specific problems associated with the important part of of the banking and insurance sectors held by foreign establishments in many of the New Member States;

46.  Notes that it is necessary to strike a balance between the need to take steps that help preserve financial stability and the need to maintain banks' ability to provide credit to the economy; it is important that the banking system should be able to fulfil its fundamental tasks in normal times as well as in times of crisis;

47.  Notes that the size of financial institutions and their respective balance sheets have introduced the concept of ‘too big to fail’; calls on the Commission, therefore, to require banks to produce a ‘living will’ detailing their orderly liquidation in the event of a crisis;

48.  Welcomes the European Central Bank's (ECB) strong role in the framework of the European Systemic Risk Board (ESRB), enabling it to make a major contribution to financial stability in the European Union;

49.  Stresses the need to introduce new standards for statistical data on the financial sector, strengthening the risk-monitoring and surveillance capacity of the European Commission;

50.  Wishes to encourage financial innovation provided that it leads to the development of transparent tools for financing useful technological innovation, long-term investment, pension funds, jobs and the green economy; is looking forward to further EU action in the area of innovative financing with the aim of mobilising long-term savings in favour of sustainable, strategic long-term investments and expanding access to financial services;

51.  Reaffirms the paramount importance of a system of supervision and regulation which leaves no financial transaction and no financial instrument off the record book; insists that hedge funds must be submitted to the same rules as any and every investment fund; stresses that supervision and regulation must target speculative movements on the financial markets in order to curb and rein in speculation against countries, currencies and economies;

52.  Considers that lax corporate governance of financial institutions has contributed to the crisis and needs addressing in order to ensure that risk committees are operational and effective, board members are sufficiently knowledgeable about the institution's products and management and non-executive directors assume responsibility for aligning investor and employee interests with respect to compensation policies;

53.  Notes a lack of values and ethics in the behaviour of some actors in financial markets and institutions; underlines that financial markets and institutions have to take into account, as part of their corporate social responsibility, the interests of all of the parties involved, such as their clients, shareholders and employees;

54.Takes the view that a sufficiently broad set of criteria for systemic risk needs to be used as the basis for categorising financial institutions, especially within the EU; considers that use of these criteria entails asking how many Member States' institutions operate in and how big they are, and, most importantly, ascertaining the capacity of a given institution to disrupt the internal market – a point underscored when the crisis demonstrated that large size was only one of several factors that posed systemic risk;

55.  Deems it vital that the EU should take into account, in defining new rules, the need to maintain and expand the structural diversity of its financial sector, and believes that the European economy needs a sound network of regional and local banks, such as savings banks and cooperative banks, while recognising that different banks have different areas of expertise and core competencies; notes that plurality has proved its worth in the financial crisis and has added to stability, and that uniformity can lead to systemic fragility;

56.  Calls for a return of the role of the traditional bank manager who, knowing the character, track record and business plan of loan applicants, is in a position to take a calculated risk based on personal knowledge in accordance with EU legislation such as the MIFID and consumer credit directives which provide for consumer information and protection;

57.  Stresses that, in order to revitalise and unblock the flow of credit to companies and individuals, it is essential to find long-term solutions to the difficulties posed by the enormous amount of private debt for both households and businesses;

58.  Calls for increased transparency in the relations between Member States and their relations with leading financial institutions;

59.  Welcomes the Commission's proposal of 2 June 2010 and considers that the business model of the Credit Rating Agencies may result in a conflict of interests, given that the agencies are used to measure the financial strength of the companies that pay them, and that their model does not enable them to evaluate the macroeconomic aspects of decisions; realizes that the credit rating agencies contributed to the crisis because their incentives were set up in a harmful way largely resulting from a lack of competition; proposes that research be carried out into the reliability of a system whereby investors and savers pay for access to the information they need;

60.  Asks the Commission to launch a feasibility and impact study on the setting up of a public and independent European Credit Rating Agency, and considers that courts of auditors, as independent bodies, ought to contribute actively to the rating of sovereign debt; believes that this development would introduce a welcome plurality of standards; considers that increased competition in the ratings market could improve the quality of ratings;

61.  Calls on the Commission to explore proposals on shareholder voting rights in terms of providing for greater transparency in respect of shareholders' identities and strategies and by encouraging long-term investment;

EU governance

62.  Considers that at times of economic and social crisis Europeans expect accountability, responsibility and solidarity to be the guiding principles behind European decision making;

63.  Notes that for decades before the crisis, many European countries were experiencing low economic growth and high unemployment owing to a lack of capacity in some Member States to reform their economies towards a knowledge-driven economy and to restore their competitiveness on the international markets, as well as to low domestic demand; notes that Europe needs more transparent and efficient financial markets and higher economic growth that is conducive to high-quality employment and social inclusion;

64.  Notes that the European Union is finding it more difficult than other regions in the world to get out of the crisis, largely on account of inappropriate, insufficient and belated political responses to the crisis and the structural weakness of its governance capacity, and notes the risk that the crisis will seriously and permanently weaken its economic, and thus political, position on the world stage, which perhaps will only be regained in the long term and if the EU is able to consider the sustainability of the concept of the ‘European way of life’ without undermining its core values;

65.  Considers that the Union will need to achieve greater coherence in policy making to rise to the challenge facing it; therefore deems it essential that the policies implemented be consistent; considers that action by the EU institutions will be decisive here;

66.  Notes also the deficient economic governance structures in the European Union, whereby this fragmentation impairs the Union's capacity to impose its weight in discussions on the major macroeconomic imbalances, particularly with the United States and China;

67.  Believes that the crisis has revealed a trend in the economic policies of the last years which left many countries both within and outside the euro area with an alarming rate of public debt;

68.  Points out that the long-term sustainability of public finances is essential to stability and growth; welcomes the Commission proposals to strengthen the management of the euro zone in the medium and long term, which are designed to prevent any repetition of the current currency crisis, and shares its view that the Stability and Growth Pact requires more effective incentive and penalty mechanisms;

69.  Underlines that, in order to restore sound growth rates and achieve the objective of sustainable economic development and social cohesion, priority should be given to dealing with persistent and significant macroeconomic imbalances and disparities in competitiveness; welcomes the recognition of this necessity by the Commission in its communication on economic policy coordination;

70.  Notes that the crisis highlighted structural weaknesses in certain EU Member States and notes that the problems of some Member States in financing their debt on the markets can be attributed to inadequate governance and, as reported by the IMF, to international financial markets sounding false alarms;

71.  Considers that the financial crisis in Greece and other countries within the euro area are a serious matter for the euro area as a whole and that it reflects the euro zone's weaknesses in coping with the spillover effects of the global financial sector;

72.  Considers that any development model based on the universally declared desire not to return to the status quo needs to make the link between sustainability and solidarity; proposes that the Union's future strategy be sustainable in terms of financial markets, the economy, government expenditure, economic and social impetus, climate and the environment;

73.  Favours the introduction of a tax on financial transactions, the revenue from which would improve the functioning of the market by reducing speculation and help to finance global public goods and reduce public deficits; considers that such a tax ought to be as broadly based as possible or, failing that, that the financial transaction tax should be introduced as a first step at EU level; calls on the Commission swiftly to produce a feasibility study taking into account the global level playing field and to come forward with concrete legislative proposals;

74.  Considers that in order to avoid the risk of structural after-shocks, focusing the exit strategy on long-term sustainable growth should be the leading criterion for policy choices; from this perspective, the content of fiscal packages is essential; policy choices should be made in accordance with medium- to long-term objectives, and public investment must be properly targeted and focus on innovation, research, education and energy efficiency, and new technologies should be considered a priority;

75.  Points out that the Union's greatest successes have come from the achievement of practical projects and the implementation of substantive policies, such as the internal market, the common commercial policy (CCP), the euro, the launching of structural reforms and the Erasmus programme, which the Commission is working to drive forward;

76.  Considers that solidarity between generations means that neither the young nor senior citizens should be overburdened with debt contracted in the past;

77.  Notes that the crash has shed new light on the demographic challenge and the challenge of funding pensions; considers that the funding of pensions cannot be entirely left up to the public sector, but that reliance should be placed on tripartite systems including public, occupational and private pension schemes duly guaranteed by specific regulation and supervision in order to protect investors; considers, furthermore, that pensions will need to undergo European-wide reform to contribute towards financing solidarity between generations; considers that the increase in life expectancy raises cross-cutting issues regarding the organisation of society that have not been anticipated;

78.  Believes that what Europe needs is a more united and efficient and less bureaucratic Union and not just more coordination; believes that the Commission, whose task it is to define and defend the general European interest, must, as a priority and in line with its right of initiative, commit to action on behalf of the Union in those fields where it has shared competences or competence to coordinate Member States' actions, while implementing and enforcing common policies and setting boundaries for action by market or state players that would hamper the internal market; considers it vital for the Commission to utilise regulations instead of directives as the legal basis in order to facilitate uniform adoption across the EU and to prevent distortions;

79.  Asks the Commission to organise, where necessary, sector-based round tables so that all the stakeholders in a given market can work together with a view to encouraging the re-launch of a genuine European industrial policy as well as fostering innovation and job creation; recalls that in this endeavour we must bear in mind our commitments on climate change and the potential of certain green technologies; considers that the EU budget needs to be better used, so that it becomes a real catalyst for all national efforts in the areas of research and development, innovation and creation of new businesses and jobs; calls further on the Commission to put forward concrete proposals on how to enhance cooperation between business and research and promote clusters, and to support such a strategy with adequate funds; stresses that one fundamental driving force for development in any market is free and fair competition, where it is easy for newcomers to enter the market and where there are no privileges distorting it;

80.  Invites the Commission to make full use of the letter and spirit of the Framework Agreement with regard to the special partnership with the European Parliament with a view to setting the priorities of the European agenda in the interest of all citizens; calls for an intensified dialogue with the national parliaments, in particular in the areas of budgetary and financial matters; warns against any attempts to create separate institutions on an intergovernmental basis, which would exclude some countries from decision making and would prevent equal weight being given to the views of all Member States;

81.  Believes that effective economic governance implies endowing the Commission with proper, stronger management responsibility, thereby enabling it to use both existing tools and the new tools provided for by the Lisbon Treaty, such as Articles 121, 122, 136, 172, 173 and 194, which confer on the Commission the task of coordinating reform plans and measures and establishing a common strategy;

82.  Believes that strengthening economic governance must go hand in hand with reinforcing the democratic legitimacy of European governance, which must be achieved through the closer and more timely involvement of the European Parliament and of national parliaments throughout the process;

83.  Proposes that responsibility for economic and monetary affairs at the Commission should be given to one of its vice-presidents; proposes that that person be tasked with ensuring that EU economic activity is consistent, with overseeing how the Commission exercises its economic, monetary and financial-market-related responsibilities and with coordinating other aspects of the Union's economic activity; also suggests that he or she should participate in the work of the European Council, chair the Ecofin Council and the Eurogroup and represent the EU on relevant international bodies;

84.  Considers that the budgetary difficulties currently faced by Member States and the need for considerable investment call, if the strategic objectives of the Union are to be achieved by 2020, for new financial models involving both public and private funds;

85.  Urges the Member States and the Commission to accelerate the creation of conditions for the public and private sectors to cooperate closely including in the form of public-private partnerships, in order to meet the challenge of long-term investment at national and European level, leading to sustainable, inclusive and competitive growth;

Economic and Monetary Union policies

86.  Confirms its commitment to the euro; recognises the strategic function and value of a common currency; stresses the transparency and economic benefits the euro has brought to the euro zone; takes the view that, first and foremost, the euro must be a bastion of stability for the European economy;

87.  Notes that the primary objective of the ECB's monetary policy is to maintain price stability; points out that the objective of price stability can be achieved effectively only if the root causes of inflation are properly addressed; recalls that Article 127 of the TFEU also assigns to the ECB the task of supporting the general economic policies of the Union; deems it essential that Member States in the euro area and those with a special status strictly fulfil their obligations and leave no doubt about the common aims of price stability, independence of the ECB, budget discipline and fostering growth, employment and competitiveness;

88.  Commends the ECB on its efforts to control inflation, but calls for the ECB to play a greater role in controlling asset inflation;

89.  Notes that a monetary union needs strong coordination of economic policies to be resilient to economic downturn; regrets that in the Economic and Monetary Union the emphasis has largely been on the ‘monetary’;

90.  Agrees with the IMF that crisis management is not an alternative to the corrective policy actions and fundamental reforms needed to reinforce the foundation of the European Monetary Union;

91.  Underscores the need for the euro zone to increase its resilience by finalising an institutional set-up based on both incentives and sanctions for necessary actions;

92.  Stresses that the SGP is the only existing regulatory instrument that can provide a fundamental regulatory framework for macro-economic policies and public finances in the EU;

93.  Notes that the changeover to the euro, as the report on the first ten years of the euro has shown, has also revealed a widening of divergences in competitiveness between the euro zone economies, thus exacerbating the consequences for the economically weak countries and leading to substantial trade imbalances within the euro zone; notes, however, that the benefits of the euro for the Union as a whole, for example in terms of relative economic stability, price stability and a low inflation rate, have been substantial;

94.  Stresses the need for many countries to put their fiscal house in order and reduce significantly their deficit and debt levels; agrees with the Council on the need to ensure fiscal sustainability and enhanced economic growth and employment in all Member States, and therefore agrees that plans for fiscal consolidation and structural reforms need to be defined and implemented accordingly;

95.  Notes that this could lead to financial consolidation strategies which will greatly constrain the governments' capacity to act; at the same time, warns that these austerity packages should not lead to measures which could dampen economic recovery, employment creation and social cohesion;

96.  Considers that the Stability and Growth Pact is an important tool for putting pressure on the sustainability of public finances, which has contributed to economic responsibility within the euro zone; recognises that it has been hampered by poor enforcement and has not given sufficient leverage for optimising the economic policies of each of the Member States and the euro zone as a whole; considers that this economic policy instrument was not designed to act as a sustainable corrective process to compensate for current imbalances and manage periods of crisis or of very low growth; takes the view that beyond the application of existing rules, Member States should implement internal policies to foster growth, innovation, competitiveness and a qualitative objective whereby the public deficit must not exceed certain benchmarks;

97.  Considers that the Stability and Growth Pact does not take into account other imbalances such as the ones in private debt and in current account, which also have an impact on monetary union;

98.  Notes that, even after it became clear that the accuracy of statistical data reported by some Member States was questionable in some cases, during the previous parliamentary term when the directive on Eurostat was being revised, the Council was opposed to giving Eurostat the power to conduct the on-the-spot checks advocated by the European Parliament;

99.  Considers that the authors of the Maastricht Treaty expected a convergence of competitiveness between Member States in the euro zone and had not anticipated the high degree of divergences, which ultimately led to an increase in the spreads, as fears concerning the solvency of some Member States drove up their risk premium;

100.  Notes that the last months have seen a number of temporary exceptions to the application of European state aid norms, thanks to which the Member States had the opportunity to contain the impact of the crisis; notes that the growth phase, towards which we are heading, requires solid foundations and it is in this context that we need to return gradually to the normal state aid regime, thus ensuring a level playing field in Europe;

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

102.  Proposes the setting up of an effective incentive and penalty mechanism to be applied to the implementation of the Stability and Growth Pact, which would contribute to preventing any worsening of the current crisis and ensure the prevention of a new crisis in the future;

103.  Believes that multilateral surveillance and requests for adjustment must be directed at situations of both deficit and surplus, taking account of each country's specific circumstances, in terms of demography for example, and that they must have regard to levels of private debt, trends in wages compared to labour productivity, employment – especially youth employment – and current-account balances; considers that these factors, if they cannot be employed in the same way as the current stability pact criteria, should be used as warning signals; believes more transparency is needed with respect to public finance data, and welcomes the Commission proposal on the quality of statistical data;

104.  Urges the Commission to put in place an enforced European sanctioning mechanism which is under its clear competence within the euro zone in order to force Member States to respect the rules of the Stability and Growth Pact;

105.  Takes the view that the Stability and Growth Pact proved not to be efficient enough in coordinating fiscal policies, that its reliance on individual countries' policies raised problems with enforcement and fairness of information, that it failed to make the link with employment levels and job creation in such a way as to generate a properly balanced economic policy mix, and that it also failed to address the issues of real convergence, competitiveness and creation of euro zone synergies; takes the view, therefore, that there is a need for further coordination among Member States, and the euro zone economies in particular, in order to strengthen the economic balance in the euro zone;

106.  Considers that the broad economic policy guidelines both for stability and growth established jointly with Parliament should be used as a framework for discussion and evaluation of the Member States' budgets – before their presentation to the respective national parliaments;

107.  Believes that, in addition to having a single currency, the euro zone countries should go a step further by making arrangements for a mutual issue and management of a proportion of Member States' sovereign debt providing a basis for more complex multilateral surveillance with assistance from the EMF and EFSF, in order to ensure that the euro zone market as a whole is more attractive and for joint debt management;

108.  Considers that the implementation of the structural reforms, especially the adaptation and restructuring of the social distribution systems in the new Member States, needs strong support and solidarity from the Union; regardless of any global financial, economic and social crisis situation, the euro zone and the ERM II have to be further enlarged by new Member States which have fulfilled the Maastricht criteria; such decisions, inter alia, would prove the stability and sustainability of the euro zone itself.

109.  Considers that levelling out the existing major differences in competitiveness within the euro zone by keeping wage increases in line with productivity gains and inflation expectations is key to avoiding the emergence of rifts within the euro zone;

110.  Calls for substantial improvement in the social dialogue on macro-economic issues, which must entail more than merely informing the social partners about guidelines proposed or adopted;

111.  Calls on the Commission and the Council to define broad common guidelines for the EU to implement a sustainable market economy; believes that such guidelines should be defined annually on the basis of an assessment which includes wage/productivity evolution at national and European level through proper social dialogue;

Fiscal policy
112.Calls for a common budgetary strategy in order to restore and safeguard the EU as a long-term economic growth area;

113.  Considers that public expenditure used efficiently with a view to the future (on education, training, infrastructure, research, environment etc.) can stabilise the economy by nourishing healthy, sustained growth over time; takes the view that high-quality, responsible public spending combined with fostering the entrepreneurial and innovative potential of the private sector can drive economic and social progress;

114.  Stresses the importance of establishing a stronger link between the Stability and Growth Pact, macroeconomic instruments and the Europe 2020 National Reform Programmes by presenting them in a coherent way, thereby also making for enhanced comparability of national budgets in terms of spending in different categories; believes that Member States should view their respective economic policies not only as a matter of national interest, but also as a matter of common interest, and should formulate their policies accordingly; reminds the Member States of the enhanced role of the Broad Economic Policy Guidelines;

115.  Insists that, if the Europe 2020 strategy is to be credible, greater compatibility and complementarity are needed between the national budgets of the 27 EU Member States and the EU budget; emphasises the greater role the EU budget should play in terms of pooling resources;  

116.  Considers that public investment that is targeted smartly can have a major leverage effect on long-term investment; proposes extending the mandate of the EIB to include the ability to issue Eurobonds to invest in major structural projects in accordance with the EU strategic priorities;

117.  Points out that a common currency can only operate if Member States coordinate their budgetary policies and open their books to each other; recognises that this process requires close cooperation with national parliaments;

118.  Calls on the Commission and the Council, with Eurostat's support, to improve the comparability of spending under national budgets in order to identify policy complementarity or convergence;

119.  Believes that the Union and Member States must work towards the introduction of fiscal principles that will cease to encourage indebtedness in the public and private sectors and short-term remuneration in the private sector and which could possibly include bonus/malus mechanisms based on criteria relating to decent work and the environment;

120.  Notes that recovery from the financial, economic and social crisis and an exit from the sovereign debt crisis will require a long-term process which must be well designed and ensure balanced and sustainable development; acknowledges that compromises may have to be made between growth, fairness and financial stability and that such compromises must be the subject of political decision making; asks the Commission to present financial development proposals that take these aims into account, particularly with regard to the EU 2020 strategy, and to explain the types of compromise on which political choices may have to be made; hopes that this will provide a basis on which the Union can facilitate debate and permit policy comparisons, following consultation with all parties that have a stake in financial-market reform (banks, investors, savers and the social partners); calls on the Commission, furthermore, to involve the European Parliament more closely in this process, particularly when devising and then implementing the EU 2020 strategy;

121.  Urges the Union to better equip itself with countercyclical economic policy management instruments;

122.  Considers that the Lisbon Treaty provides all the instruments needed at this stage to put in place real economic governance of the Union and better surveillance of the state of public finances in the Member States;

Internal market

123.  Highlights calls in the Mario Monti and Louis Grech reports, adopted by the European Parliament on 20 May 2010, for a more holistic approach to the internal market, in terms of both strategy and perception, with a view to making it more effective and restoring public confidence; underlines the importance of the ‘Single Market Act’ initiative of legislative and non-legislative proposals to strengthen and update the internal market, complete the Digital internal market and address and break down remaining barriers;

124.  Considers it essential that the Single Market Act include an ambitious agenda for social and consumer protection in the form of the insertion of a social clause in all legislation related to the internal market, legislation on services of general economic interest, a legislative agenda to strengthen workers' rights, an ambitious legislative package for consumer protection that makes a difference to the daily lives of citizens and better tax coordination by means of harmonisation of the corporate tax base and VAT rates;

125.  Notes that the internal market requires the support of all as a cornerstone of the European project and the foundation of sustainable wealth creation in the EU;

126.  Points out that the internal market is one of the main drivers of European growth; underlines that the EU 2020 strategy should serve as a concrete program for growth and employment with a view to facing the economic crisis and strengthening the internal market;

127.  Takes the view that initiatives by single states cannot be effective without coordinated action at EU level, making it fundamental that the European Union speaks with a strong single voice and implements common actions. Solidarity, on which the European social economy model is based, and the coordination of national responses have been crucial to avoiding protectionist measures of short duration by single Member States; expresses its concern that the re-emergence of economic protectionism at national level would most probably result in fragmentation of the internal market and a reduction in competitiveness, and therefore needs to be avoided; is concerned that the current economic and financial crisis could be used to justify reviving protectionist measures in various Member States, whereas the downturn calls for common safeguard mechanisms instead;

128.  Takes the view that progress in the internal market should not be based on the lowest common denominator. Encourages the Commission, therefore, to take the lead and come forward with bold proposals; encourages the Member States to use the method of enhanced cooperation in areas where the process of reaching an agreement among 27 is not achievable; other countries would be free to join these spearhead initiatives at a later stage;

129.  Warns against the notion that the European economy can somehow develop and grow without free and fair trade with as many other countries in the world as possible, including our leading trade partner today, the US, and emerging economies like China, India and Brazil; considers that the European Union should also rely on its own strengths by making better use of its internal market, especially since the bulk of its growth is also linked to domestic demand;

130.  Stresses the need to unleash the potential of the internal market for business in the era of globalisation, in order to boost job creation and innovation in new technologies in Europe;

131.  Believes that in order to establish an effective internal market, the Commission must produce a clear set of political priorities through the adoption of a ‘Single Market Act’, which should cover both legislative and non-legislative initiatives, with the aim of creating a highly competitive social market economy;

132.  Recognises that within the European Union the construction of the internal market without some tax harmonisation, notably regarding corporate taxes and a definition of the components of social protection, have led to some extent to excessive competition between Member States seeking to attract taxpayers from other Member States; notes, nevertheless, that one of the great advantages of the internal market has been the removal of barriers to mobility and the harmonization of institutional regulations, fostering cultural understanding, integration, economic growth and European solidarity;

133.  Recommends that the Commission conduct an independent exercise to identify the top 20 single-market-related sources of dissatisfaction and frustration which citizens encounter every day, in particular in relation to e-commerce, cross-border medical care, and mutual recognition of professional qualifications;

134.  Calls on the Member States finally to accept correlation tables concerning the implementation of legislation in order to make legislation deficits more transparent;

135.  Stresses that a well-functioning procurement market is essential to the internal market; remains concerned, however, that there are still significant problems for public authorities in achieving their policy objectives within a complex set of rules, as well as in ensuring SME access to the public procurement markets;

136.  Encourages the Commission to come forward with a proposal introducing a ‘sunrise clause’, which would ensure that EU internal market laws automatically enter into force at a given time if Member States do not transpose them in time;

137.  Believes that putting in place sound, effective rules for an economic area, following a crisis on the scale of the one we have experienced, constitutes a significant contribution to competitiveness; considers that the EU authorities have a particular responsibility for ensuring that the reform agenda is adhered to, inter alia by national political authorities;

138.  Takes the view that Europe should once again turn into a favourable location for investments and production, and become a world benchmark for innovation and growth; believes that financial institutions, be they public or private, must do their utmost to ensure that the financial markets work for the benefit of the real economy and of small and medium-sized enterprises;

139.  Asks the Commission to carry out an annual assessment of public and private investment needs and how they are being, or should be, met;

Taxation

140.  Recognises that in order to further develop the Union's internal market, a coordinated approach is needed at both national and EU level to capitalise on best practices in the fight against tax fraud and evasion, while defining appropriate incentives for tax payers to duly pay their taxes and for the tax authorities in the Member States to adopt effective preventive measures against all types of tax malpractice;

141.  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 internal market as a result of the different levels of tax fraud in the Member States; asks the Commission to draw up an impact assessment to evaluate the different problems caused by tax evasion and the black economy in all the Member States;

142.  Stresses the fact that achieving sustainable public finances requires not just responsible spending, but also adequate and fair taxation, more effective collection of taxes by national tax authorities and a more intensive fight against tax evasion; calls on the Commission to propose a set of measures to help the Member States restore the balance of their public accounts and to finance public investment by tapping innovative financial sources;

143.  Notes, echoing the work carried out by Mario Monti, that increases in public revenue linked to good economic performance have generally led to tax cuts; notes that taxation on labour should be reduced in order to increase European competitiveness; supports Mario Monti's proposals for the establishment of a Tax Policy Group, which would bring together representatives from the Member States, as an important way of encouraging dialogue between European countries; invites the policy group to discuss primarily the framework for a tax system that would address environmental goals and support resource efficiency; welcomes the proposal for a directive on a common consolidated corporate tax base in the 2011 Commission work programme;

144.  Recognises that a major driving force for institutional improvement and economic growth in the Member States is their sovereignty in choosing how they wish to levy taxes; regards it as essential to reduce taxes on labour, both for the sake of the least fortunate and in order to allow the middle classes to live decently from the fruits of their labours;

145.  Advocates a tax structure geared to easing the burden on labour and encouraging, and creating incentives for, employment, innovation and long-term investment;

Regional, economic and social cohesion

146.  Considers that cohesion policy should be regarded as one of the pillars of the Union's economic policy, contributing to long-term EU investment strategy;

147.  Notes that cohesion policy has become an essential element in the European Economic Recovery Package, being a public policy which can be used to respond to the crisis and address short-term demand stimulation while at the same time investing in long-term growth and competitiveness;

148.  Considers that the strength of cohesion policy in linking recovery to long-term growth comes from its three basic characteristics: it sets strategic guidelines that are conditions for resources to be transferred, which are binding on both Member States and regions; it leaves space for Member States and regions to tailor interventions to local specificities; and it has the capacity to monitor and support in pursuit of goals;

149.  Underscores that the uneven impact of the crisis across Europe's territory reflects different competitive starting points and varying degrees of recourse to anti-crisis measures, and that it means different long-term outlooks; points out that the effects of the crisis may result in weakened territorial cohesion if it is not countered with policies targeting specific problems in a differentiated manner. Notes that in some of the countries most affected by the crisis, cohesion policy accounted for a major part of total public investment;

150.  Considers that the post-crisis strategy will be more effective if regions and cities are involved in its implementation; multilevel governance offers broader policy space, allowing more effective promotion of economic recovery in the EU, as regional and local levels of European governance have the capacity to translate European general strategic goals into their own territorial specificities and are capable of harnessing the policy tools they have at their disposal and the enthusiasm of all partners – business, academia and civil society;

151.  Points out that today there are many policy tools at the local and regional levels of governance. Both innovation, which can bring productivity gains, and greening, which can create new demands and markets, require a regional and local focus and a place-based integrated approach to investment and growth policies; a region, a city, a town or a rural area can be a place where all partners can be brought together and all the elements needed to arrive at a solution found;

152.  Expresses, therefore, its concerns at the lack of progress in devolving power to communities, given that local and rural communities provide opportunities in terms of the economy, employment and community building, and that providing support for these communities allows exclusion to be reduced by reinforcing the fabric of the community and thus increasing its capacity for absorption;

153.  Points out that, as regions will continue to gain in importance in driving the economic agenda of the EU, local lending needs to be strengthened, and that this can be stimulated through strong regional banks; notes that regulation of the financial services industry should take into account the need to stimulate entrepreneurship and financing for SMEs, and that financial support for SMEs in cohesion policy should move towards venture capital finance, which would allow greater involvement of the banking sector and a more efficient use of structural funds;

154.  Calls for further reform of the current cohesion policy structure to enable funds to be provided more rapidly and efficiently to Member States, regions and cities; points out that more flexibility is required and that the Commission must take this into account when designing future cohesion policy;

155.  Considers it vital that any long-term EU investment strategy supported by the cohesion policy be linked to results in terms of competitiveness, innovation, job creation, green growth, and improvements in economic, social and territorial cohesion at European level, especially between old and new Member States;

EU 2020

156.  Calls for the EU 2020 strategy to pursue a broad political concept of the future of the EU as a competitive, social, sustainable Union which places people and the protection of the environment at the centre of policy making;

157.  Considers that, if these goals are to be achieved, it is time to coordinate our macroeconomic policies closely, aiming as a priority to increase the Union's growth potential and focusing on a model of inclusive and sustainable development, without which none of our problems can be solved; considers that this should be the focus of the new EU 2020 strategy;

158.  Recognises that, in order to prevent the responses to the euro crisis from resulting in a lengthy period of economic stagnation, the Union should at the same time implement a strategy to accelerate sustainable economic growth alongside reforms aimed at restoring and improving competitiveness;

159.  Notes the five headline targets agreed by the European Council on employment rate, research and development, greenhouse gas emissions, education levels and social inclusion; stresses that these headline targets should be formulated in the framework of a consistent and coherent sustainable development strategy combining the economic, social and environmental policy agendas;

160.  Considers that education should be placed at the very heart of the Union's economic strategy, with the goal of raising the overall quality of all levels of education and training in the EU, combining excellence and equity and reforming the educational model; believes that education should constitute a public good in the eyes of the Union, with investment in all aspects of the education system, in quality of education and in broadening access to higher education; proposes the introduction of a permanent, inclusive European-level system of lifelong learning, under which the Erasmus and Leonardo programmes for education and training mobility would become more generally accessible; points out the need to urgently raise the level of investment in the field of R&D, particularly in view of the 7FP mid-term evaluation and the next EU financial perspectives;

161.  Notes that tackling youth unemployment and fostering an effective matching of skills and market needs should be focal points; believes that public-private partnerships in education need to be developed and cross-border mobility for students and researchers in exchanges and internships should be used to enhance the international attractiveness of Europe's higher-education institutions while retaining the target of spending 3 % of GDP on R&D will boosts innovation through research and higher education;

162.  Considers that the EU 2020 Strategy as proposed by the Commission should concentrate on making the internal market less bureaucratic, by reducing administrative burdens on business by 25 % by 2012, and more efficiency-driven, by using the internet as the backbone of an EU-wide e-market that will generate new services and jobs;

163.  Believes that the governance structure of the Europe 2020 strategy should be strengthened to ensure that it will achieve its objective; considers that a broader use of binding measures is necessary to make the new strategy a success, instead of continued use of the open method of coordination in the field of economic policy; urges the Council and Commission to come forward with an economic strategy for economic recovery based primarily on EU instruments and not mainly on intergovernmental initiatives;

164.  Recognises that good governance or an economic government will not, in itself, be enough to provide the EU with the growth strategy it needs in order to tackle the crisis and square up to global competition; is convinced, however, that 10 years of EMU have demonstrated – in the unique context of the euro – the absolute need for such a strategy;

165.  Insists that the EU 2020 strategy should include a target for reducing poverty in the EU by half, and points out that a majority of Europeans currently living in poverty, or at risk of poverty, are women, in particular older women, migrant women, single mothers and carers; takes the view, moreover, that a life-course perspective should be introduced, as poverty of its parents has a direct impact on a child's life, development and future;

166.  Calls for an ambitious long-term strategy against poverty with the aim of reducing inequalities and social exclusion, with far-reaching targets for poverty reduction and in-work poverty; proposes an EU framework policy on minimum income schemes, taking account of subsidiarity, different practices, collective bargaining and national law in the Member States, and on the basis of European criteria scaled to reflect the standard of living in each Member State; calls also for a child allowance with the above aim of reducing poverty, inequalities and social exclusion;

167.  Considers that the Member States should hold debates in their respective national parliaments prior to adoption of their stability and growth (EU 2020) programmes;

Innovation

168.  Notes that the Commission's Innovation Scoreboard shows that Europe is still lagging considerably behind Japan and the United States in terms of research and innovation;

169.  Considers that, in addition to funding for small and medium enterprises, the European Union needs to take a proactive and coordinated approach to funding research and innovation and to be at the forefront of new employment sectors and attracting private investment;

170.  Notes that the transition to an energy-efficient economy as a way of increasing the EU's energy security should be one of the priorities of the Commission and the Member States; considers that the EU should encourage innovation in energy generation from renewable resources, putting the emphasis on low-carbon local sources;

171.  Considers that energy network interconnections are crucial to the functioning of the internal market in the energy sector, as well as to more extensive generation of energy from renewable resources; emphasises the importance of smart-grid development;

172.  Points out that SMEs should be the backbone in the development of renewable and energy-efficient technologies; notes that the creation of financial instruments to encourage energy efficiency and innovation in renewable energy use is crucial;

173.  Considers that investment in the renewal of housing stock and public transport needs to be prioritised in order to reduce energy costs and energy poverty and to initiate a virtuous circle;

174.  Advocates a fair and equitable gradual transition to a green economy; believes that the job losses resulting from the transition need to be anticipated with measures to step up training and improve workers' skills in the new technologies; notes that fuel poverty is a significant and growing concern;

175.  Calls on the Commission to develop and propose a mechanism whereby SMEs and other innovators would be offered risk-softening funding in public-private partnership with private equity funds, where money from the European Investment Bank, together with public money from the Member States, with the support of risk-guarantee mechanisms by the European Investment Fund distributed through the private equity fund, would enable the projects to leverage private investment up to 80 %;

176.  Supports the establishment of financial institutions to provide financing for innovation projects throughout the Union, which are essential for future sustainable growth;

177.  Urges the Commission to work to eliminate administrative hurdles, and to improve the conditions for innovation, for example by creating the single EU patent. Notes that well-intended programmes aimed at boosting competitiveness and shaping a sustainable economy are not working properly, as SMEs, universities and multinationals are discouraged from participating in European programmes;

178.  Notes that fiscal and monetary policies are no substitute for structural reform, which must address the underlying weaknesses of the European economy – sharply growing debts and deficits, an ageing population, the probability of a surge in inflation or a process of deflation, the highly probable new surge in inflation, risks to industries generated by climate-change policies, especially owing to uncertainty about new targets and standards, low productivity and lack of competitiveness; calls for higher efficiency in using public money, at both European and national levels; considers that the differences in the timing and intensity of the crisis, as well as the different ex-ante fiscal and monetary positions of the individual Member States, should be taken into account when adopting coordinated policies and targets; believes that these efforts should lead to faster real convergence among national economies;

179.  Considers that the European winning strategy has to be based on sound fiscal policies fostering innovation, education and workforce employability – the only way to boost productivity, employment and growth in a sustainable way;

180.  Points out that addressing climate change and resource scarcity and halting biodiversity loss are the framework conditions for future European economic growth; notes that this growth must, therefore, be based on decoupling economic growth from resource use, on green innovations and on ecologically sustainable economic progress;

181.  Welcomes the strategy adopted in 2007 by the European Council aimed at increasing the EU's energy independence and setting out specific commitments to combat climate change; considers that the crisis has further emphasised the relevance of this strategy; considers, however, that for this strategy to be successful, it requires more ambitious action by the Union on top of measures to regulate the internal market;

Employment

182.  Considers that one of the great challenges facing the European Union is that of maintaining its competitiveness, increasing growth and combating high unemployment;

183.  Reiterates that high-quality employment should be a key priority in a 2020 strategy and that a stronger focus on properly functioning labour markets and on social conditions is vital to improving employment performance; calls, therefore, for a new agenda to promote decent work, guarantee workers' rights throughout Europe and improve working conditions;

184.  Believes that the new strategy must put more emphasis on decent work, including the fight against undeclared work, and on ensuring that people who are currently excluded from the labour market can gain access to it;

185.  Believes that the new strategy should encourage labour markets which improve incentives and conditions for people at work while, at the same time, increasing the incentives for employers to recruit and retain staff;

186.  Points out the importance of looking at Europe's diminishing competitiveness on a global scale; bearing the projected long-term labour shortages in mind, it is important to look beyond the crisis and to explore European schemes to allow for knowledge migration and the prevention of a European ´brain drain‘;

187.  Considers that firm and resolute action on employment is all the more necessary as there is a risk that economic recovery in the Union may not be accompanied by sustainable job creation;

188.  Urges the Union to link its actions on employment to measures to combat poverty and social exclusion, together with an effectively functioning internal market for workers within the EU, so that the crisis does not further increase inequalities;

189.  Calls on the Member States and the Commission to achieve a 75 % employment rate for men and women by 2020 by reducing labour-market segmentation and stepping up efforts to facilitate the balance between work, caring responsibilities and family life;

190.  Considers that efforts to support job creation need to be focused on employing the young, which in turn calls for furthering the provision of gender-sensitive programmes to equip young people with the skills needed in the real economy;

191.  Stresses the need to create inclusive and competitive labour markets which provide greater flexibility for employers while at the same time guaranteeing unemployment benefits combined with active support for re-employability in the event of job loss;

192.  Believes that, while education should remain the responsibility of the Member States, EU investments and EU-wide recognition of qualifications are needed in all aspects of the education system, in the quality of education and in broadening access to higher education; proposes the introduction of a permanent and inclusive European-level system of lifelong learning guidelines, under which the Union's Erasmus and Leonardo programmes for education and training mobility would become more generally accessible;

193.  Makes the point that employment is one of the key factors in the economy because it contributes to spending power; considers that the EU should pursue the aim of full, high-quality employment and that the sustainable functioning of the internal market depends on a labour market that offers decent work and furthers the cause of innovation;

194.  Urges the Member States to address, through labour-market-related policy measures, both the cyclical and the long-term dimensions of unemployment;

195.  Takes the view that Europe needs solid growth to sustain its social system, which contributes to the competitiveness of the European social market economy;

196.  Notes that it is important to facilitate mobility, which also makes it easier for companies to find the skills they require and the internal market to function better, including in a crisis; notes that labour mobility needs to go hand in hand with the improvement of working conditions;

Creating new jobs by promoting SMEs

197.  Notes that SMEs and entrepreneurs play a significant role in all economies and are the key generators of employment and income, and drivers of innovation and growth; believes that SMEs are crucial to future development, growth and welfare in the EU, and that the EU's competitiveness vis-à-vis the world can be strengthened by prioritising SMEs;

198.  Believes that it is time to look to the future and learn from the lessons of the past, thereby achieving over time the structural changes that will make our SMEs more competitive and ready to face the additional pressures that will come from the globalised environment and our competitors' capacity to enter into ever more innovative markets, and in so doing potentially guaranteeing jobs for many of the more vulnerable members of the work force and their families;

199.  Recognises that the current definition of an SME in the EU has to be re-examined and that the criterion regarding the number of employees needs to be lowered in order to allow for more targeted policies aimed at SMEs;

200.  Realises that the ambition to drive industry and SMEs towards innovation will not be achieved solely by improving access to capital in general, but that there should also be an aim to diversify the sources of financing;

201.  Takes the view that, in the context of recovery, particular attention should be paid to the role of SMEs in terms of productivity and the creation of new assets, and that mechanisms should therefore be implemented to avoid the exit of SMEs from the market, increasing unemployment and prolonging economic frailty; considers that efficient distribution of the European Social Fund should also be guaranteed;

202.  Considers that SMEs should be regarded as a motor for smaller investments financed by the cohesion funds; believes that the allocation of funds to universities and the promotion of partnerships with SMEs are key in this regard;

203.  Realises that the EU internal market helps to create a fertile business environment throughout the Union, whilst also benefiting consumers; is aware, nonetheless, that SMEs face numerous challenges in operating in the internal market and often operate below their efficient scale, and that, especially at the micro level, SMEs need to be supported in order to be able to operate throughout the internal market, that their access to information about opportunities needs to be brought up to the level where trans-European platforms can be established, and that only then can SMEs explore business opportunities, find complementarities and, ultimately, find the means to gain access to markets within the Union;

204.  Considers that keeping citizens active and productive after retirement is, among other things, in the economic interest of Europe and that the loss of their expertise can be mitigated by encouraging senior citizens to remain active through looser structures and networks based on their civic engagement and by linking them with economic actors and academia; believes that SMEs could profit most from a network of informal structures such as this, which could be consulted, as most SMEs find it hard to afford these services from the consultancies active in the economy; points out that knowledge accumulated by senior citizens must be circulated for the benefit of all by the establishment of a network at EU level;

205.  Calls on the Union to promote its web of SMEs – which are at the forefront of job creation – by facilitating their access to credit, notably through support for guarantee schemes and the creation of new standard products to combine loans and equity for smaller companies; calls on the Union to create an EU Guarantee Fund for SMEs; also calls for an evaluation of existing funding schemes, especially the CIP programme, and for dedicated efforts to make EU-backed loans accessible to businesses in all Member States and to develop services to SMEs and social dialogue structures;

206.  Calls on the Union to aim for a more balanced composition of financing for SMEs; notes that the share of capital markets in financing SMEs has to be increased; takes the view that the share of financing of SMEs via capital markets, venture capital, ‘angel investors’ and public-private partnerships must be increased and stimulated. Calls on the Commission and the Member States to reduce significantly public procurement bureaucracy for SMEs and to cut red tape, a move which is essential to the wellbeing of SMEs;

207.  Encourages the creation of specialised stock markets which cater exclusively to SMEs and have low barriers of entry, with a view to facilitating the equity process; considers that SMEs should focus more on equity, and against this background proposes the removal of negative tax incentives for both sides of the market, the investors and the market;

208.  Calls for the EU Member States to consider efforts to coordinate taxation relative to SMEs; believes that completing the internal market to provide cross-border financing and business opportunities for SMEs is essential to fostering the EU's recovery;

209.  Stresses that an organic link between industry and innovation, and consequently with education, is highly desirable; innovators, including SMEs, need to be at the forefront of investments at European and national level. Points out that, by definition, innovating start-up SMEs carry a high-risk bankruptcy profile, so that an entire rethink of their financing and corollary activities is needed. Stresses that, since these innovating start-ups are in the most difficult position when it comes to obtaining financing through the banking system, credit guarantee schemes need to be drawn up specifically for this segment;

210.  Proposes that the Commission should establish a ‘One SME – One Job’ project by creating a new financial instrument at EU level to encourage the activities of SMEs in the Union; considers that a more balanced composition of financing of SMEs should be achieved;

211.  Calls for the reform of the Small Business Act document, including binding provisions to be applied by all Member States, and for the establishment of a new Social Small Business Act, which would be a necessary reinforcement of the European social market economy in the post-crisis era;

212.  Recommends the creation of a one-stop shop; one-stop shops are needed in connection with every administrative issue for SMEs. Takes the view that a reduction in the administrative burden borne by SMEs is of great importance, as is the introduction of a social component in SME-relevant European legislation. Believes that Europe needs to become the most SME-friendly region of the world;

Development

213.  Notes that, although some of the emerging and developing countries seem to have escaped the worst effects of the crisis, 40 % of developing countries have nevertheless been highly exposed to the effects of the financial crisis, and an estimated 90 million people will be plunged into poverty as a result;

214.  Calls for a re-affirmation of the pledging of 0,7 % of Member States' GNI to development aid and for an exploration of additional innovative sources of financing to close the financing gap caused by shrinking economies in the developing world;

215.  Asks European companies, especially multinationals, to ensure that their sub-contracting companies within the production chain are socially responsible;

Global governance

216.  Recognises the weaknesses and problems caused by the lack of legally binding powers, and the disconnectedness, of the global financial and economic institutions; welcomes in consequence the initiatives to enhance, by means of reform, the effectiveness, global reach and accountability of the IMF and other UN institutions, so that they can be mandated to serve as a platform for overarching economic and financial sector coordination initiatives and, where appropriate, given powers to lay down legally binding rules in the form of international conventions;

217.  Takes the view that the EU's global challenges include matching its economic strength with relevance on the world stage by speaking with one voice; believes that one of the key projects of the EU's foreign policy must be to strive to reform the UN and the UN-related institutions into global institutions with real political leverage over issues of international concern such as climate change, financial supervision and regulation, poverty reduction, and the Millennium Development Goals;

218.  Calls on the European Council to convene a G20 summit devoted solely to the reform required in governance at world level;

219.  Strongly condemns the role played by tax havens in encouraging and profiteering from tax avoidance, tax evasion and capital flight; urges the Member States, therefore, to make the fight against tax havens, tax evasion and illicit capital flight a priority; calls on the EU to step up its action and to take immediate concrete measures – such as sanctions – against tax havens, tax evasion and illicit capital flight; calls on the Council to come up with a plan, in the context of the United Nations and other international bodies in which the European Union and its Member States have a seat, for closing tax havens;

220.  Recommends that, at the same time as improving the governance and operation of the Basel Committee on Banking Supervision, efforts need to be made to strengthen international governance arrangements for other market segments; proposes that the BCBS rules should come into force in the form of international treaties;

221.  Notes the progress on fiscal governance made by the OECD and in the G20, but advocates urgent and strong action to strengthen the legal and economic consequences of OECD blacklisting of non-cooperative jurisdictions; asks for rapid, practical steps to be taken on automatic, multilateral exchange of information as standard procedure worldwide, with a view to improving fiscal transparency and combating fraud and tax evasion;

222.Proposes that, following the entry into force of the Treaty of Lisbon, the EU should become a direct signatory of the ILO conventions and that it should sign all the conventions adopted by the ILO to date;
Conclusion

223.  Concludes that we need more Europe; considers that there is an urgent need for political and intellectual leadership in order to put the European project back on track; takes the views that the Commission needs to make full use of its initiative rights in the fields of shared competences, notably in energy policies, to empower the EU for challenges ahead; believes that the eco-social-friendly internal market project which underpins the Union needs to be completed; urges that mechanisms for economic governance within the Union be strengthened, especially from the point of view of better accountability, contingency management, and economic and employment policy coordination; Asserts that the financial and supervisory reform agenda must move forward rapidly, addressing not just the shortcomings observed in the crisis but also the need to design a financial system that supports the real economy, is conducive to financial stability and engenders economic growth, long-term investment, job creation, social cohesion and the fight against poverty; Considers it necessary to redesign the taxation systems in a fair manner, in a way that discourages the build-up of excessive leverage and promotes social justice, entrepreneurial spirit and innovation; Calls for a revitalisation of the sustainable social market economy and the values it enshrines;

224.  Is committed, within the framework of the Special Committee on the Financial, Economic and Social Crisis, to fulfilling the aims laid down in its mandate in close cooperation with the EU national parliaments, with a view to adopting joint recommendations;

o
o   o

225.  Instructs its President to forward this resolution to the Council, the Commission, the President of the European Council, the President of the Eurogroup, the European Central Bank, the Economic and Social Committee, the Committee of the Regions, the Governments and Parliaments of the Member States and the social partners.

(1) OJ C 230 E, 26.8.2010, p. 11.

European Parliament resolution of 20 October 2010 with recommendations to the Commission on improving the economic governance and stability framework of the Union, in particular in the euro area (2010/2099(INI))

P7_TA(2010)0377 A7-0282/2010

The European Parliament,

–  having regard to Article 225 of the Treaty on the Functioning of the European Union,

–  having regard to Article 3 of the Treaty on European Union,

–  having regard to Articles 121, 126, 136, 138 and 352 of the Treaty on the Functioning of the European Union and Protocols (No 12) on the Excessive Deficit Procedure and (No 14) on the Euro Group, annexed to the Treaty on European Union and to the Treaty on the Functioning of the European Union,

–   having regard to the Commission Communications of 12 May 2010 on Reinforcing economic policy coordination (COM(2010)0250), and 30 June 2010 on Enhancing economic policy coordination for stability, growth and jobs – Tools for stronger EU economic governance (COM(2010)0367),

–  having regard to the Commission recommendation of 27 April 2010 for a Council recommendation on broad guidelines for the economic policies of the Member States and of the Union: Part I of the Europe 2020 Integrated Guidelines (SEC(2010)0488),

–  having regard to the Commission proposal of 27 April 2010 for a Council decision on guidelines for the employment policies of the Member States: Part II of the Europe 2020 Integrated Guidelines (COM(2010)0193), and its position of 8 September 2010(1) in respect thereof,

–  having regard to the Commission Communication of 3 March 2010 on Europe 2020: A strategy for smart, sustainable and inclusive growth (COM(2010)2020),

–  having regard to the Council Regulation (EU) No 407/2010 of 11 May 2010 establishing a European financial stabilisation mechanism(2),

–  having regard to the Council Regulation (EC) No 332/2002 of 18 February 2002 establishing a facility providing medium-term fiscal assistance for Member States' balances of payments(3),

–  having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies(4),

–  having regard to Council Regulation (EC) No 1467/97 of 7 July 1997 on speeding up and clarifying the implementation of the excessive deficit procedure(5),

–  having regard to Council Regulation (EC) No 3605/93 of 22 November 1993 on the application of the Protocol on the excessive deficit procedure annexed to the Treaty establishing the European Community(6),

–  having regard to the conclusions of the Council meeting on 7 September 2010 approving a stronger monitoring of economic and budgetary policies (the European Semester),

–  having regard to the conclusions of the European Council of 17 June 2010,

–  having regard to the conclusions of the Council meeting on 9 and 10 May 2010,

–  having regard to the Statement of the Heads of State or Government of the Euro Area of 7 May 2010,

–  having regard to the Statement by the Heads of State and Government of the Euro Area of 25 March 2010,

–  having regard to the conclusions of the European Council of 25 and 26 March 2010,

–  having regard to the Statement on the support to Greece by Euro area Members States of 11 April 2010,

–  having regard to the conclusions of the Council meeting on 16 March 2010,

–  having regard to the conclusions of the Euro Group on Surveillance of Intra-Euro-Area Competitiveness and Macroeconomic Imbalances of 15 March 2010,

–  having regard to the Euro Group's Terms of reference on exit strategies and near-term policy priorities in the Europe 2020 strategy: implications for the euro area of 15 March 2010,

–  having regard to the Presidency conclusions of the European Council of 22 and 23 March 2005,

–  having regard to the Presidency conclusions European Council of 23 and 24 March 2000,

–  having regard to the resolution of the European Council on Economic Policy Co-ordination in Stage 3 of EMU and on Treaty Articles 109 and 109b [of the EC Treaty] of 13 December 1997,

–  having regard to the Resolution of the European Council on the Stability and Growth Pact of 17 June 1997(7),

–  having regard to the Resolution of the European Council on growth and employment of 16 June 1997(8),

–  having regard the European Central Bank's note on Reinforcing Economic Governance in the Euro Area of 10 June 2010,

–  having regard to its resolution of 17 June 2010 on the quality of statistical data in the Union and enhanced auditing powers by the Commission (Eurostat)(9),

–  having regard to its resolution of 16 June 2010 on economic governance(10),

–  having regard to its resolution of 25 March 2010 on the Report on 2009 Annual Statement on the Euro Area and Public Finances(11),

–  having regard to its resolution of 10 March 2010 on EU 2020(12),

–  having regard to its resolution of 18 November 2008 on EMU@10: The first 10 years of Economic and Monetary Union and future challenges(13),

–  having regard to Rules 42 and 48 of its Rules of Procedure,

–  having regard to the report of the Committee on Economic and Monetary Affairs and the opinions of the Committee on Budgets, the Committee on Employment and Social Affairs, the Committee on the Internal Market and Consumer Protection and the Committee on Constitutional Affairs (A7-0282/2010),

A.  whereas recent economic developments have shown clearly that economic policy coordination within the Union, and in particular in the euro area, has not worked sufficiently well and that, despite their obligations under the Treaty on the Functioning of the European Union (TFEU), Member States have failed to regard their economic policies as a matter of common concern and to coordinate them within the Council in accordance with the relevant Treaty provisions, while respecting the key role of the Commission in the surveillance procedure,

B.  whereas both the current framework for economic governance and surveillance and the regulatory framework for financial services have not provided enough stability and growth,

C.  whereas it is crucial to go beyond the temporary measures aiming at stabilizing the euro area,

D.  whereas economic coordination and surveillance need to be strengthened at Union level, while respecting the principle of subsidiarity and taking into account the particular requirements of the euro area and the lessons that need to be drawn from the recent economic crisis, without hampering the integrity of the European Union and with the need to ensure the equal treatment of Member States,

E.  whereas economic coordination should be strengthened throughout the Union, given that the Union's economic stability may depend on the economic situation of one of its members, that there is very great economic interdependence between all Member States in the context of the internal market, and that we must prepare for enlargement of the euro area,

F.  whereas, as far as possible, all 27 Member States should follow to the maximum all the economic governance proposals, recognising that, for non-euro-area Member States, this will in part be a voluntary process,

G.  whereas the Treaty of Lisbon transforms the former ‘Community method’, adapting and strengthening it, into a ‘Union method’ in which, in essence:

H.  whereas the new enhanced economic governance should fully integrate and reinforce the EU principle of solidarity, as a prerequisite of the euro area's capacity to respond to asymmetric shocks and speculative attacks,

I.  whereas the current economic crisis in the Union is a solvency crisis that initially manifested itself as a liquidity crisis which cannot be resolved in the long term by simply pouring new debt into highly indebted countries in combination with accelerated plans for fiscal consolidation,

J.  whereas employment policies have a central role to play in stimulating growth and competitiveness in the European social market economy by preventing macroeconomic imbalances and ensuring social inclusion and income redistribution,

K.  whereas the role of the Commission and the European Central Bank (ECB) under the TFEU has to be respected,

L.  whereas a fully independent ECB is a necessary requirement for a stable euro, low inflation and favourable financing conditions for growth and jobs,

M.  whereas more attention must be given to implicit liabilities and off-balance sheet operations which may increase public debt in the medium- and long-term and reduce transparency,

N.  whereas policy makers have to identify and tackle the common economic and social challenges the EU economies are facing in a coordinated manner,

O.  whereas a stronger involvement of the social partners at national and European level will contribute to better ownership of the implementation of economic governance and the overall Europe 2020 Strategy,

P.  whereas a permanent crises resolution mechanism, including procedures for debt restructuring or orderly default, should be established in order to safeguard financial stability in the event of a sovereign- and private-debt crisis, while protecting the ECB's independence,

Q.  whereas the current rules of the Stability and Growth Pact (SGP), combined with poor enforcement, have not been enough to ensure sound fiscal and more-broadly macroeconomic policies; whereas there is a need to strengthen the EU fiscal and macroeconomic framework through a more rigorous rules-based application of preventive measures, sanctions and incentives,

R.  whereas the objective of restoring a balance in public finances is a necessity for over-indebted states, but it will not alone solve the problem of economic imbalances between countries of the euro area and more broadly of the Union,

S.  whereas the European social model is an asset for world competition, which has been weakened by the economic competitiveness divergences between Member States,

T.  whereas knowledge, capital and innovations, and to a lesser extent labour have a tendency to migrate to certain regions, EU financial solidarity mechanisms need to be further developed in line with the objectives of the Europe 2020 strategy, in particular, on research and development, on training, on existing cooperative initiatives in the field of education; and on a green and low-carbon economy aiming at fostering innovation, territorial and social cohesion, and economic growth,

U.  whereas, since the Union is facing fierce competition from emerging economies, stable public finances are essential in order to foster opportunities, new innovations, economic growth and thus the creation of a European knowledge society,

V.  whereas budget consolidation is likely to be to the detriment of public services and social protection,

W.  whereas economic growth and sustainable public finances are a precondition for economic and social stability, long-term fiscal consolidation and well-being,

X.  whereas, since the fiscal policy of many Member States has often been pro-cyclical and country-specific, the medium-term budgetary objectives of the SGP have seldom been strictly enforced or implemented,

Y.  whereas employment policies play a key role in ensuring labour intensive growth and the competitiveness of the European economy, especially in the context of an ageing population,

Z.   whereas it is essential for proper European economic governance that the internal market is completed as envisaged in the Monti Report(14),

AA.  whereas the unsustainable finances as well as the excessive aggregated (public and private) debt of an individual Member State have the potential to impact on the whole Union; whereas an appropriate balance between investments in sustainable- and job-creating growth and the prevention of excessive imbalances over the course of the economic cycle, in line with Union-level commitments and guidelines, needs to be pursued, whilst taking into account social cohesion and the interests of future generations, so as to restore confidence in European public finances,

AB.  whereas the process of reducing long-term deficits must be combined with other efforts stimulating the economy, such as improved preconditions for investments and an improved and developed internal market, providing greater opportunities and increased competitiveness,

AC.  whereas the significance of the policies financed from the EU budget, including cohesion policy, for economic growth and increased competitiveness of the Union should be recognised,

AD.  whereas the recent economic crisis has made it clear that excessive macroeconomic and competitiveness divergences and fiscal and current-account imbalances within the euro area, and more broadly in the Union, have increased steadily during the pre-crisis years due inter alia to absence of enhanced economic coordination and surveillance and need to be fully addressed,

AE.  whereas the European Parliament has for years urged improvements in economic governance both inside the Union and as regards the EU's external representation in international economic and monetary forums,

AF.  whereas, since the strengthening of economic governance must go hand in hand with reinforcing the democratic legitimacy of European governance, which must be achieved through a stronger and more timely involvement of the European Parliament and of national parliaments throughout the process, further coordination, in a spirit of mutual respect, between the European Parliament and national parliaments is needed,

AG.  whereas the decisions taken during Spring 2010 to safeguard the stability of the euro are only temporary solutions and will need to be supported by policy measures at national level and a stronger economic governance framework at the EU level, particularly among the euro area Member States,

AH.  whereas any improvement in economic surveillance and governance must rely upon accurate and comparable statistics in respect of the relevant economic policies and positions of the Member States concerned,

AI.  whereas, to make Europe a leading global actor and the most competitive knowledge society, long-term growth-oriented measures must be established as soon as possible,

AJ.  whereas the TFEU gives the Union enhanced power to strengthen economic governance within the Union, and its provisions should be fully used, while in the longer term changes to the provisions of the TFEU, whilst likely to be sensitive, should not be excluded,

AK.  whereas any potential penalties associated with the breach of SGP targets must result from either insufficient will to comply or fraud and never from incapacity to comply due to reasons beyond the Member State´s capacity,

AL.  whereas the institutions must prepare for the possible need to revise the Treaties,

AM.  whereas Article 48 of the Treaty on European Union grants the European Parliament the right to submit proposals for the amendment of the Treaties,

AN.  whereas comprehensive secondary legislation needs to be established and implemented in order to attain the Union objectives in this area; whereas enhanced economic governance for the Union, based on the provisions of the TFEU, is essential, the Union method should be used to its full extent and the key role of the European Parliament and the Commission should be respected in order to promote mutually reinforcing polices,

AO.  whereas any legislative proposal should support strong incentives for sustainable ‘growth-enhancing’ economic policies, avoid moral hazard, be in line with other EU instruments and rules, maximise the benefits of the euro as a common currency for the euro area and restore confidence in European economies and the euro,

AP.  whereas coherence between short-, medium- and long-term public investments needs to be strengthened and whereas those investments, in particular those regarding infrastructure, need to be used efficiently and allocated, taking into account the objectives of the Europe 2020 Strategy, in particular regarding research and development, innovation and education in order to increase resource efficiency and competitiveness, enhance productivity, create employment and reinforce the internal market,

AQ.  whereas, to foster economic growth, businesses and entrepreneurs must be given a real possibility to scale up and make use of the Union's 500 million consumers; whereas, consequently, the internal market for services needs to be fully developed,

AR.  whereas different competitiveness models in the Union should respect country-specific priorities and needs, while taking into account the obligations under the TFEU,

AS.  whereas the Union needs to be represented with a common position in the international monetary system, international financial institutions and fora; whereas, in the spirit of the TFEU, the Council needs to consult the European Parliament before adopting a decision under Article 138 TFEU and needs Parliament's consent before establishing common positions which cover fields to which, internally, the ordinary legislative procedure applies,

AT.  whereas the SGP´s targets must be compatible not only with the Europe 2020 strategy, but also with other compromises concerning expenditure on development aid, R&D, the environment, education and poverty eradication,

AU.  whereas, in order to avoid further widening the existing competitiveness divergences in EU and undermining the success of the new strengthened European economic governance as well as the EU 2020 targets on job creation and sustainable growth, the European fiscal consolidation strategy should fully take into account each Member State's particularities and avoid a simplistic ‘one-size-fits-all’ approach,

AV.  whereas any new proposed measures should not have a disproportionate impact on the most vulnerable Member States, hampering their economic growth and cohesion efforts,

AW.  whereas the economic crisis which led to the urgent adoption of the European financial stabilisation mechanism in May 2010 via Council Regulation (EU) No 407/2010, with Article 122(2) TFEU as its legal basis, was not consulted with Parliament,

AX.  whereas Amending budget No 5 of the European Union for the financial year 2010 covers the necessary modifications concerning the creation of a new budget item 01 04 01 03 in Heading 1 A for the guarantee, for loans up to EUR 60 billion provided by the European Union in accordance with the provisions of Article 122(2) TFEU and, correspondingly, a new Article 8 0 2 on the revenue side,

AY.  whereas some Member States may have to use the rescue package, while at the same time being obliged to take into account its different measures, which will be specifically made for each beneficiary country,

AZ.  whereas the Commission adopted, on 29 September 2010, legislative proposals on economic governance which partly meet the need for measures on improving economic governance as set out in this resolution; whereas Parliament will deal with those legislative proposals under the appropriate provisions of the TFEU; whereas this resolution does not limit any future positions to be taken by Parliament in this respect,

1.  Requests the Commission to submit to Parliament as soon as possible after the consultation of all interested parties, and on the basis of the appropriate provisions of the TFEU, legislative proposals in order to improve the economic governance framework of the Union, in particular within the euro area, and following the detailed recommendations set out in the Annex, to the extent that those recommendations are not yet addressed by the Commission's legislative proposals of 29 September 2010 on economic governance;

2.  Confirms that the recommendations set out in the Annex respect the principle of subsidiarity and the fundamental rights of citizens of the European Union;

3.  Calls on the Commission, in addition to the measures which can and must be taken swiftly under the existing Treaties, to begin to consider the institutional developments which may prove necessary in order to implement coherent, effective economic governance;

4.  Considers that the financial implications of the requested proposal should be covered by appropriate budgetary allocations taking into account the current deficit positions and austerity measures in Member States;

5.  Instructs its President to forward this resolution and the detailed recommendations set out in the Annex to the Commission, the European Council, the Council, the European Central Bank, the President of the Euro Group and the parliaments and governments of the Member States.

ANNEX

DETAILED RECOMMENDATIONS AS TO THE CONTENT OF THE PROPOSAL REQUESTED

Recommendation 1: Establish a coherent and transparent framework for multilateral surveillance of macro-economic developments in the Union and in the Member States and strengthening fiscal surveillance

Recommendation 2: Strengthen the rules of the Stability and Growth Pact (SGP)

Recommendation 3: Enhance economic governance in the euro area by the Euro Group as well as the European Union as a whole

Recommendation 4: Establish a robust and credible excessive debt prevention and resolution mechanism for the euro area

Recommendation 5: Review the EU budgetary, financial and fiscal instruments

Recommendation 6: Provide financial market regulation and supervision with a clear macro-economic dimension

Recommendation 7: Improve the reliability of EU statistics

Recommendation 8: Improve the external representation of the Union in the area of Economic and Monetary Affairs

(1) Texts adopted, P7_TA(2010)0309. (2) OJ L 118, 12.5.2010, p. 1. (3) OJ L 53, 23.2.2002, p. 1. (4) OJ L 209, 2.8.1997, p. 1. (5) OJ L 209, 2.8.1997, p. 6. (6) OJ L 332, 31.12.1993, p. 7. (7) OJ C 236, 2.8.1997, p. 1. (8) OJ C 236, 2.8.1997, p. 3. (9) Texts adopted, P7_TA(2010)0230. (10) Texts adopted, P7_TA(2010)0224. (11) Texts adopted, P7_TA(2010)0072. (12) Texts adopted, P7_TA(2010)0053. (13) OJ C 16 E, 22.1.2010, p. 8. (14) 1 ‘A new strategy for the single market – at the service of Europe's economy and society’: Report to the President of the European Commission by Professor Mario Monti, 9 May 2010. (15) OJ L 87, 31.3.2009, p. 164.