Brussels, 12/05/2014 (Agence Europe) - Common management of eurozone debt is a priority aim for the European Economic and Social Committee (EESC) when it comes to strengthening economic and monetary union (EMU) over the next five years.
A fortnight ahead of the European elections, civil society representatives at the European level are calling on the European institutions to move towards budget and economic union as the necessary complement to monetary union.
This stronger European integration should be based on a series of measures, a “European Investment Plan,” to carry out big infrastructure projects and facilitate, for example, completion of a single energy market. The plan should include “social investment,” to help Europeans gain new skills.
Common management of eurozone debt should include the establishment of a debt redemption fund for the portion of debt exceeding 60% of GDP of each eurozone nation, the creation of eurozone bonds and shorter-term eurobills. The EESC says that better coordination of budget policies requires action on both expenditure and income, thus paving the way for “a common budget for the euro area.” Economic policies should be coordinated before they are introduced and there should be a “fiscal capacity and solidarity mechanism at EU level to absorb asymmetric shocks” such as the bursting of property bubbles or excessive influx of capital. The EESC also recommends “the establishment of a system of European unemployment insurance” (unemployment benefit) “so as to alleviate monetary pressures and avoid member states' wage policies bearing the full brunt of any asymmetric shocks.”
The EESC says entrepreneurship needs to be encouraged, and consumers given further rights and protection within the Single Market. (MB)