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Image header Agence Europe
Europe Daily Bulletin No. 11000
Contents Publication in full By article 34 / 35
INSTITUTIONAL / (ae) economy

EP divided over “contractual arrangements”

Brussels, 20/01/2014 (Agence Europe) - Speaking on the fringes of an interparliamentary conference, the chair of the EP's employment and social affairs committee, French Socialist Pervenche Berès, raised the question of contracts that a member state could sign with Brussels as a pledge to reform the economy in return for financial aid. She said the EP has not yet totally decided on its position on this, adding that, at the last European summit (in December), heads of state did not exactly give the impression of wanting to make progress on this issue (see EUROPE 10989). She predicted that the question would be brought up during the European election campaign.

Alain Lamassoure (EPP, France), chair of the EP's budget committee, wondered where the cash for the aid associated with the contracts was going to come from. Perhaps from national budgets in the form of bigger national contributions to the EU? From the EU budget? Impossible for the cash to come from the EU budget, he said, asking what the connection might be with the eurozone's bailout fund, the European Stability Mechanism (ESM). Beres said it would be difficult to have contracts like this without any financial incentives. Philip de Backer (ALDE, Belgium) said that member states did not always approve the economic recommendations issued by the Commission and endorsed by the Council of Ministers and any contractual arrangements of this type would have to be signed under the Community method. The European summit wants this subject, that Beres said was a real hot potato, settled by October 2014. (EL/transl.fl)

 

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