Brussels, 25/02/2015 (Agence Europe) -France and Italy feel that it is “vital” for a more regular discussion to be held on the aggregate budgetary situation of the eurozone.
In order to define “a common strategy at eurozone level, based on an overall direction of budgetary policies consistent with the aim of supporting growth”, the two countries call for a regular eurozone summit, which would be “systematically held on the back of the European Council of March”, according to the declaration they adopted at a bilateral summit held in Paris on Tuesday 24 February (our translation).
Paris and Rome state that they have implemented “wide-ranging” reforms and confirm their “intention to continue on this road”. “The sustainability of the public accounts requires a determined continuation of budgetary adjustment to support growth, at a pace to suit the economic climate and making use of all of the flexibility laid down in the rules” of the Stability Pact, the two countries stress. They suggest bringing forward (probably to the March summit) the adoption of the recommendation for the eurozone, “so as to allow the stability programme submitted by the member states to decline its recommendations”.
Every year, the so-called 'European Semester' budgetary process concludes at the June European Council, with the adoption of the socio-economic policy recommendations for each country and at eurozone level. The member states must draw upon these recommendations when putting together their finance bills for the following year.
France and Italy reiterate their commitment to working to set in place a “financial capacity for the eurozone” which would pay for policies and investments with a major impact on growth and employment and which would, by way of a medium-term objective, serve as a “common budgetary tool to absorb economic shocks in the eurozone”. Against the backdrop of the revision of the governance of the eurozone, the two countries favour the option of a “permanent Presidency of the Eurogroup”, with the term in office of the current President of this informal body, Jeroen Dijsselbloem, due to end in mid-2015 (see other article). They go on to call upon the European Parliament to “continue its work to create specialist structures within the institution specific to the eurozone”. (Translation from the original French version)