Brussels, 01/09/2014 (Agence Europe) - MEP Philippe De Backer “welcomes the ambitious structural reforms implemented by the member states under the macroeconomic adjustment programmes but finds it regrettable that the member states in the rest of the member states in the euro area are less ambitious in modernising their economies”.
The European Parliament “notes the importance of continuing the process of deep and sustainable structural reforms to deliver on growth and jobs and reiterates in this connection that the EU cannot compete on cost alone, but needs to invest more in research and development, education and skills”, states the own initiative report by De Backer on the priorities of the European Semester process for 2014. The report will be discussed on Wednesday 3 September by the European Parliament's economic and monetary affairs committee.
De Backer says that, although the social and economic policy recommendations (“country-specific recommendations” or CSR) sent by the European Council to each member state are “a precondition for achieving economic convergence in economic and monetary union (…) there is inconsistency between European commitment and national implementation of CSRs by member states. According to the European Commission, only 10% of CSRs have been fully implemented and 45% of CSRs have seen limited or no progress”. The MEP “requests that the Commission report on a quarterly basis (…) on measures taken to ensure progress on implementation of the CSRs” and to use all the legislation at its disposal to encourage the member states to take action.
Unveiling a liberal agenda, De Backer recommends budget consolidation and placing the “emphasis on policies that enhance competitiveness, support job creation, fight unemployment and improve the functioning of the labour market” by getting more young people into work, along with reforms to ensure the sustainability of social security, healthcare and pension systems. He warns to the danger of economic protectionism. In the fiscal domain, he argues that the burden of taxation should be on consumption rather than labour. The Belgian Liberal notes that “private investment is more conducive to growth than public investment”, and calls for the completion of the single market, particularly in the service sector. (MB)