Brussels, 30/04/2013 (Agence Europe) - Martin Schulz has come down clearly in the economic debate a year ahead of the next European elections on the side of urgent stimulus of the economy.
In a welcome message to the new Italian prime minister, Enrico Letta (see separate article), the president of the European Parliament, Martin Schulz, writes: “As stated by the Prime Minister in his speech before the chambers, austerity is suffocating not only Italy, but also many eurozone countries. Urgent measures are needed to give oxygen to the economy and give-back hope to young people: measures that the European Parliament has been calling for since the beginning of the crisis”.
After academic researchers highlighted gaps in studies establishing a link between public debt and low economic growth, after international financial bodies demanded that Europe ease up on consolidation of public spending, after the president of the European Commission himself admitted the political and social limits to restrictive budget policies that have been applied too fast and too intensively, the growth versus austerity debate in Europe has crystallised in new friction between the two biggest economies in the eurozone. In statements and leaked reports from both countries, the Left in France accuses the German government of defending budget discipline in an inflexible or even selfish manner. In Germany, people call on France to implement reforms that have been postponed for too long to avoid the danger of missing its targets, particularly if it were to be given an extra year to bring its public deficit below the 3% GDP cut-off point.
Sweeping aside accusations of promoting austerity as a matter of dogma, the European Commission constantly repeats that the policies it recommends are three-pronged, based on budget, structural reforms and targeted investments. On Friday 3 May, it will unveil its spring economic forecasts, which are expected to paint a gloomy picture of the European economy. The forecasts mean that the European Summit will inevitably have to discuss the situation and progress in implementing the stability and growth pact. On Wednesday 29 May, the Commission will publish country-specific recommendations based on the stability and reform programmes submitted by the member states in April. (MB/transl.fl)