Brussels, 19/02/2013 (Agence Europe) - The breathing space currently being experienced by the eurozone will not last long unless we do what has to be done, warned Pervenche Berès (S&D, France), chair of the European Parliament's Employment and Social Affairs Committee, on Tuesday 19 February during a public hearing at the European Economic and Social Committee. She said it was only recently that the causes of the crisis had been uncovered but one has to have a good diagnosis if one wants to find a good cure. In the past, Greece was wrongly accused by some of being responsible for its own problems, but everyone has now had to admit that it was the fragility and half-finished aspects of the eurozone itself that caused the crisis, Greece being no more than a warning signal, she said.
EU Economic and Monetary Affairs Commissioner Olli Rehn said that no big projects were ever perfect, but the hidden weaknesses and shortcomings of the single currency had been revealed by the financial crisis. In order to deal with that, huge efforts have been deployed and huge measures taken, like boosting economic governance with the European Semester and co-ordination of economic policies by means of the “six-pack.”
These steps are important, but are only one part of the cornerstone of the strategy for getting out of economic crisis. “We cannot and must not limit the debate on the future of Europe only to institutional issues - no matter how important they are - but at least equally important is to focus on the competitiveness of our industry, saving our industrial base and on the foundation of sustainable growth and job creation. I want to see a competitive and inclusive economy that enables us to achieve sustainable growth and job creation, while maintaining our social model and ensuring a sustained rise in welfare,” said the Commissioner.
The EESC has been examining the future of the euro and says that the way that growth stimulus policies are still on the drawing board is deplorable, explained Carmelo Cedrone, rapporteur on the draft opinion to be endorsed by the EESC on this subject in April.
In this connection, Berès is delighted that the conclusions document of the recent European Summit of heads of state paves the way for a social dimension in the task of boosting economic and monetary union. She said that important work had started at the IMF and among socialists at the European Parliament to highlight the dangers of budget consolidation that ignores the implications of austerity measures for the wider economy. The European Commission has responded on several occasions to criticism of its approach to austerity policies and Rehn said that public debt of around 100% of GDP damaged economic vibrancy and growth for several years to come. He added: “The situation does, however, vary substantially among member states, which is why we apply a differentiated approach to consolidation, taking into account the specific challenges of each and every member state when determining the structural fiscal adjustment effort needed. If growth deteriorates in an unexpected manner, a country may receive extra time to correct its excessive deficit, provided it has delivered the agreed structural fiscal effort and does the necessary structural reforms to underpin medium-term stability and growth.” He refused to comment on whether Spain would be granted more time, saying that the European Commission would be unveiling its latest economic forecasts on Friday. Rehn said the EU had “enough tools to ensure that member states respect their European commitments,” and it was a matter of practising what one preached although he preferred to focus on prevention rather than sanctions. (EL/transl.fl)