Brussels, 25/02/2016 (Agence Europe) - On Thursday 25 February, the European Parliament decided on its position regarding the socio-economic priorities for 2016, adopting three reports on the 2016 exercise of the 'European Semester' budgetary process (see EUROPE 11498).
“Investments are the number one priority”, said Maria João Rodrigues (S&D, Portugal), rapporteur on the annual growth review for 2016, a document which marks the start of the 'European Semester' (see EUROPE 11439). She said that her report paves the way for an evolution of the political mix at European level, towards laying greater emphasis on investments in sectors conducive to growth (education, innovation) and on strengthening internal consumption.
Calling for “upwards convergence” within the Eurozone, Rodrigues said that the greatest added value of the report is to “consider the eurozone as a specific economic entity” with specific socio-economic policy priorities and governance. Initially, “certain groups did not agree with that”, she told EUROPE in an interview the day before the vote, referring to divisions over this issue within the EPP group and the opposition of the ECR and ENF groups. Additionally, Rodrigues added, it will only be possible to reabsorb macro-economic imbalances through not only efforts on the part of the less competitive countries to reform their economy but without heading for an “internal devaluation” (reduction in salaries, cuts to social benefits), but also efforts by the more competitive countries, by boosting internal demand.
In favour of a reinforced social dimension
The questions of employment in the social aspects were dealt with in the report prepared by the Portuguese MEP Sofia Ribeiro (EPP). In it, the EP welcomes the inclusion by the Commission of three employment-related indicators (activity rate, youth unemployment and long-term unemployment) in the macroeconomic imbalance procedure, whereas the Council opposed this (see EUROPE 11469). The MEPs take the view that these indicators should be put on the same level as the existing indicators.
As regards recommendations for reforms, the EP expresses its concern at the impact on the social level of budgetary adjustment policies based around reducing expenditure, and calls for priority to be given to public and private investment, and to economically and socially balanced structural forms which reduce inequalities. It takes the view that investments in education, human resources, social services, healthcare and the social protection systems should be increased.
Finally, the EP proposes a revision of the 'European Semester' process, to boost the social dimension of the EMU. A greater involvement of the national parliaments and joint meetings of the ministers for employment with their counterparts for finances have been suggested, but it was the idea of looking into the possibility of laying down common minimum salaries which particularly stands out.
Priority to the application of the existing legislation
Noting serious problems with the transposition and application of European legislation regarding the single market, the MEPs, in their adoption of the report on the governance of the single market, laid emphasis on the need to enforce the existing legislation, before adopting any new legislative acts. “If we persist in not taking advantage of the progress made over the last 20 years, this will not be to our advantage”, said Catherine Stihler (S&D, UK), rapporteur, stressing the unexploited potential of the single market which, according to certain studies, could be more than €1,000 billion a year.
The MEPs propose adding a single market pillar to the 'European Semester' process, which would comprise of five areas of work to improve governance: - a system for the monitoring and regular assessment of the integration and competitiveness of the single market; - the creation of an annual assessment of progress made on integration and competitiveness in the single market, which could feed into the annual assessment of the micro-economic policies; - the integration of these reports in the framework of the economic and budgetary evaluations of the member state; - the creation of regular structured dialogue regarding the compliance of the national legislations; - reinforcing the involvement of the EP, the member states, the national parliaments and the stakeholders to ensure greater transparency, better governance and improved ownership of the Community acquis of the single market.
Speaking on behalf of the Dutch Presidency of the Council of the EU, the Defence Minister, Jeanine Hennis-Plasschaert, said that the European Council of March would discuss ways of deepening the single market. “Good (socio-economic policy) recommendations will not guarantee success if they are not implemented”, she pointed out. (Original version in French by Mathieu Bion, Jan Kordys, Pascal Hansens)