Brussels, 11/06/2013 (Agence Europe) - Ahead of the European Summit at the end of the month, the European Parliament is preparing to pass a resolution on the future of economic and monetary union (EMU) in which it slams the Council of Ministers' lack of ambition.
In the draft resolution tabled by the EPP, S&D, ADLE and Greens/EFA, the EP “finds the overwhelming general lack of ambition being demonstrated by the Council in its response to the crisis to be of very great concern; it is worried, furthermore, about the negative influence that national electoral cycles are having on the European Union's ability to take autonomous decisions”. This is a thinly veiled reference to Germany, the biggest economy in the eurozone, that is preparing for electioneering ahead of general elections in September.
A staunch supporter of the Community method, the European Parliament says “it cannot accept any further intergovernmental elements in relation to EMU (...) and warns the Council in this connection not to interfere unduly in the European Semester process and to ensure that the agreed procedures are followed”. The EP urges the summit to endorse the European Commission's country-specific recommendations (see EUROPE 10855), along with the budget pact and the European stability mechanism (ESM), which should, ultimately, become part of the full EU system.
Another area of extreme concern to the EP is the delays in setting up banking union (a single system for bank supervision and restructuring) and in deciding on the details of direct bank recapitalisation from the ESM in order to break the vicious circle whereby bank woes lead to worsening public debt.
On the policy side of EMU, the MEPs are greatly concerned that the Council of Ministers has not yet embraced the idea of democratic accountabilty for greater integration. The EP wants there to be democratic control at EP level of the troika, which monitors on-the-ground implementation of the aid and structural adjustment programmes for countries like Greece and Portugal.
The Commission also comes in for criticism. The MEPs say they are “perplexed as to why the Commission has not yet presented legislative texts based on the proposals contained in its 'Blueprint for deep and genuine EMU'”. The MEPs say that “EU participation in the troika system should be subject to democratic scrutiny by and accountability to Parliament”. The blueprint mentions the option of partial pooling of eurozone sovereign debt, which a group of experts is due to examine by the spring of next year, but the Commission has been dragging its feet. (MB/transl.fl)