Brussels, 19/02/2016 (Agence Europe) - On Thursday 18 February, the European Parliament's economic and monetary affairs committee endorsed the three main thrusts of social and economic policy at European level, viz. a responsible budget policy, investment and pursuit of structural reforms.
A draft report drawn up by Maria João Rodrigues (S&D, Portugal), which will be adopted in the EP's plenary on Wednesday 24 February, takes a position vis-à-vis the Annual Growth Review 2016, a European Commission document that marks the start of the 2016 European Semester (see EUROPE 11439). The report recommends full respect of the Stability and Growth Pact, using flexibility under the European budget rules to stimulate investment and counterbalance the cost of structural reforms and to relieve countries coping with large numbers of refugees.
With regards to macroeconomic imbalances, an EP press release explains “the euro area's high current account surplus is a welcome sign of the euro area's external competitiveness, the report says, adding that “it also reflects a lack of internal investment, with adverse effects on growth and employment”. They encourage Member States with higher current account surpluses (such as Germany and the Netherlands, Ed.) to expand their domestic demand for their own and general benefit.”
At an economic dialogue with MEPs on Thursday, the head of Eurogroup, Jeroen Dijsselbloem, said that Dutch pension funds should invest more in the Netherlands (see EUROPE 11493).
After adopting a social and economic policy recommendation for the eurozone on Friday 19 February (see EUROPE 11492), the European Summit in March will endorse the member states' position on the Annual Growth Review. In January, the member states expressed opposition to the European Commission's desire to include three employment indicators (employment rates, long-term unemployment and youth unemployment) in the scoreboard of macroeconomic imbalances (see EUROPE 11467). (Original version in French by Mathieu Bion)
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