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(Info from EP) How Europe should govern its economy amid the current crisis and what may be left in its wake dominated the debate in the European Parliament on 19 May. In the three hour debate many MEPs called for the European Union to coordinate its economic policies more closely to mirror the existing cooperation in other policy fields. The need for fiscal responsibility and the reigning in of public debt was also emphasised. Many Members felt that the financial system itself was inadequate and encouraged irresponsible behaviour. For the Spanish Presidency of the European Union, State Secretary Diego Lopez Garrido told the House that serious deficits, debts and speculative actions have caused the current crisis. To remedy it he proposed short term help such as to Greece and longer-term structural reforms of pensions, health systems and labour markets. He also called for closer coordination of economic policies. Such measures would put the EU on track to an economic union he said. Speaking in the Chamber, the European Commissioner for Economic and Monetary Affairs Olli Rehn told MEPs that the "the EU is prepared to defend the euro whatever it takes". Referring to the Commission's proposals on economic governance of 12 May, he said that competitiveness must be raised and crisis resolution mechanisms improved. He also said that the Commission would be willing to make recommendations on each national budget of a Member State to ensure that countries adhered to the terms of the Stability and Growth pact. The Commission's proposals are a "quantum leap" in economic governance he added. Time to pass from words to concrete action on economic governance Joseph Daul, the leader of the EPP group in the European Parliament, commented that the latest measures to fight the crisis in the euro zone were not sufficient. He went on to say that deficits must be reduced and measures have to be taken now, irrespective of whether the government is right or left wing. "Let's do these things not just talk about them", he said. Mr Daul also told the House that sanctions must be put in place for States that fail in their obligations to report the accuracy of deficits. "We have to be serious about our budgets. That is the only way to advance on education, innovation and restoring growth" he concluded. Martin Schulz leader of the Socialist and Democrats group was critical of what he called "laissez-faire ideology". He called the current system "partly immoral and perverse". He also criticised credit rating agencies which during the peak of problems in Greece were "already looking at the next target and trying to bring down Portugal . They should be controlled, they should be subject to rules" he said. He went on to stress the fact that Europe needed economic governance, "anybody who is against that has not understood the message". A governance crisis For ALDE, its leader Guy Verhofstadt said the problems amounted to one of "a governance crisis". He asked the Commission not to wait for the Task Force on economic governance to come up with its proposals but to present proposals itself for "a global package before Governments and the European Parliament". According to Mr Verhofstadt it should contain four elements; consolidation of the Stability pact, a more convincing 2020 Strategy, a European Monetary Fund (EMF) and a European bond market. Rebecca Harms (Greens/EFA, DE) said her bloc had supported a mechanism on financial stabilisation adopted two weeks ago but wanted recognition of more joint economic policy - "not simply to fight the symptoms of the crisis but to tackle the full extent of the crisis". She remarked that saving banks was misguided and that "we have to move beyond this policy of saving, it is costing billions and billions and we do not know where we are going to get the money from". She also said that within the whole EU, bonds have to be looked at, hedge funds banned, and a tax on financial transactions introduced. "Will" to fulfill commitments? British MEP Timothy Kirkhope (ECR) said that what Europe too often lacks are not extra powers but the will to fulfil commitments. He said he hoped that the Europe 2020 initiative will not fail on this aspect. The "EU needs powers to call for a prior draft budget presentation by Member States and to impose tougher sanctions" he said. Lothar Bisky (GUE/NGL, DE) told the House that "Governments have used taxpayer's money to save casino capitalism". He called for strong regulation of the financial sector, coordination of tax policies, and a ban of hedge funds and tax havens. Greek MEP Niki Tzavela (EFD) said that the European Central Bank should guarantee euro bonds, covering 60% of the GDP of Member States. She also supported the use of development aid to help Greece finance its debts but added that it was also important to support the economic development of the country. The shape and tone of the debate as well as the concrete and far reaching proposals show that it is a right time Europe without further delay to take over existing governance crisis and to pass from words to concrete action on economic governance. There is a direct call to the Commission urgently to present proposals for a global package before Governments and the European Parliament. |
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