Brussels, 23/05/2013 (Agence Europe) - On Thursday 22 May, the European Parliament (EP) adopted a resolution on the next stages of economic and monetary union (EMU) by 484 votes to 107, with 13 abstentions. The MEPs want full implementation of economic governance rules based on the “six-pack” and “two-pack” to be given priority over any new legislation.
In March 2013, the European Commission published two reports on deepening the foundations of EMU, one on prior coordination of economic policies and one on the establishment of a convergence and competitiveness fund (see EUROPE 10811). The MEPs say the two reports were not published at a very good time, and call on the Commission to unveil draft legislation on introducing a convergence code in the European Semester system, including a “social pillar”. The EP regrets that the two reports focus on price competitiveness, ignoring the question of tax evasion, social issues and jobs.
Democratic legitimacy. The European Parliament says it cannot see its own views (expressed in the negotiations on strengthening EMU) in the Commission's reports and regrets the way the reports only provide for very limited parliamentary control because, as the EP points out, legitimacy is based on democratic decision-making. The MEPs' resolution says that the EP, like national parliaments, must be fully involved, particularly when it's a question of transferring national sovereignty and national parliaments should have a greater role in drawing up governments' reform programme.
Solidarity and discipline. The EP points out the European Commission's commitments when the two-pack was adopted to greater responsibility and greater economic discipline being combined with greater solidarity. The MEPs therefore say that new measures taken to strengthen the coordination of economic policies must go hand-in-hand with incentives to increase solidarity, cohesion and competitiveness. These measures should reduce the negative impact in the short term of government report programmes and the latter should be transparent and public.
Convergence and competitiveness instrument. The European Parliament has expressed reservations about the convergence and competitiveness instrument (CCI) proposed by the Commission. The Commission's report says that nation states and the Commission itself will have to sign “contractual arrangements” before a country becomes eligible for funding to help it carry out reforms recommended in the country-specific recommendations by the Commission. The EP agrees with the Commission that the fund could be set up as part of the European budget, but outside the spending caps decided for the multi-annual financial framework. The resolution says the CCI should be a lever for boosting budget capacity and should therefore only he available for participating countries. The Commission says it would be the first step in moving towards budget capability, on which it is planning to publish proposals over the next 18 months (before the end of the current European Parliament).
The MEPs says that such mechanisms need to be more closely anchored in EU law, in order to make them as coherent as possible, and should be included in the European Semester. They say the measures adopted by the member states should not have any negative impact, even in the short term, on social inclusion, workers' rights, healthcare and other social questions.
The European Union heads of state will examine the future of economic and monetary union at their summit in June. (EL/transl.fl)