Brussels, 06/07/2011 (Agence Europe) - “We say that more Europe is needed. This message may seem odd to some countries given our impression that they are mistrustful of Europe, precisely because sometimes it has given the impression of doing too little too late”, said Pervenche Berès (S&D, France) on Wednesday 6 July, as she presented the report by the EP special committee on the financial crisis, which was adopted by the Parliament (see EUROPE 10390). According to this report, greater economic integration is needed if Europe wants to continue to play an international role. Also needed are a “European Exchequer” to bring member states' economic policies more into line with each other, and a genuine “European Debt Agency” which would issue eurobonds to lift the eurozone out of the sovereign debt crisis.
Olli Rehn pointed out that the legislative package on economic governance, which is currently blocked, provides for the European Commission to analyse the feasibility of eurobonds at the latest six months after its adoption. “Without first getting a serious reform of economic governance, eurobonds would quickly turn to junk bonds”, said the commissioner, adding that, in his view, “we are in a mess not only, but mainly, because of fiscal indiscipline … and because we failed to identify and act on important macroeconomic imbalances”.
In order for the EU to fulfil its missions, the special committee recommended a European budget within the range of 5% to 10% of Community GDP. Finally, at this stage, MEPs do not want to launch into a war of figures on the future multiannual financial framework. With the adoption of an amendment by the EPP Group, they do away with all reference to figures and content themselves with recommending a “sufficiently large” European budget. A Social Democrat amendment recommended “substantial increase” of the budget in order to “accommodate the euro in a sustainable way, providing the currency with a relevant budget space on the level of political organisation at which it is issued”. (M.B./transl.rt/jl)