Brussels, 04/10/2010 (Agence Europe) - There have been a number of reactions to the European Commission's recent publication of draft legislation to boost economic governance (see EUROPE 10225). The president of the European Council, Herman Van Rompuy, explained that growth was based on confidence and the economic recovery in Europe, in the form of an average 1.8% in growth forecast for 2010, remained fragile and variable depending on the member state in question. He said people should trust their banks, their country's public finance and their future and that was why wholly exceptional measures had been taken in the spring of this year to save the euro. He added that several member states had pledged to introduce courageous reform programmes which would be tough but were vital for budget stability. Sherpas in the taskforce on economic governance chaired by Van Rompuy will meet on Tuesday 5 October. The final taskforce meeting at ministerial level will take place in Luxembourg on Monday 18 October, and the final report submitted to the European Council at the end of the month.
The European Parliament has co-decision powers over the EU's legislative package. Sharon Bowles (ALDE, UK) said: “The European Parliament's contribution needs to be ambitious if we are to bring about a stronger monetary union within the euro area and enhance fiscal surveillance across the EU. As a first step, the EU semester, due to begin in spring 2011, will be key in starting this new governance framework.” Her German counterpart, Wolf Klinz, focused on the penalties set out in the Stability and Growth Pace (SGP): “Sanctions should take effect more quickly and powerfully. Automatic sanctions are a first step in the right direction. There should even be the option to temporarily withdraw voting rights in the Council. We also need to arm the SGP to include a penalty fine in case of non-compliance.”
French MEP Pervenche Berès (S&D) said: '”The design of macroeconomic policy can't be left to finance ministers alone, their employment and social affairs counterparts need to be closely associated. To complete the proposal of a European semester, I suggest giving it a face by creating a Mr/Ms Euro, who will be vice-president of the Commission and chair of the Eurogroup.” Diogo Feio (EPP, Portugal), whose report on economic governance will be voted upon by an EP committee on Tuesday, is optimistic about the future of the European semester for member states to submit to Europe the outlines of their planned budgets and debt procedures before they are passed by the national parliament. (M.B./transl.fl)