Brussels, 30/05/2016 (Agence Europe) - On Monday 30 May, the economic and monetary affairs and budgets committees of the European Parliament examined the draft Berès/Böge report on the various possible mechanisms for a budgetary capacity for the Eurozone.
According to French Socialist Pervenche Berès, co-rapporteur on the dossier, the aim of the rapporteurs is to send out “a clear message about everything that is required for the functioning of the Eurozone” this autumn. She detailed the three roles this budgetary capacity could fulfil: - macroeconomic “convergence” conducive to “investment”; - the absorption of “asymmetric” shocks, possibly via a fund designed to support individual Eurozone countries in the event of a rainy day, such as a spike in unemployment; - the absorption of “symmetrical” shocks. She stressed that the EP has “constantly” called for the European stability mechanism (ESM), the permanent bailout fund of the Eurozone, to be made a Community instrument, “even though we are not making the ESM the be-all and end-all” of budgetary capacity for the Eurozone. Whatever happens, this budgetary capacity should stand outside the EU budget, she stressed.
Taking the view that the status quo in the Eurozone cannot be the answer, “with or without 'Brexit'” (the United Kingdom leaving the Union), Reimer Böge (EPP, Germany), co-rapporteur, stressed the importance for the EP of making “energetic” efforts to create a “clear roadmap” leading to the creation of budgetary capacity for the Eurozone. In order to do this, there has to be a statement of what can be done without treaty change, such as the creation of the “rainy day fund”, and what cannot, such as amendments to the allocation and governance of the ESM.
On behalf of Romania's Siegfried Muresan, his fellow EPP Group member, German MEP Burkhard Balz, criticised the draft report, which, he said, could lead to a Union of budgetary transfers and neglects the mismanagement of public finances by certain Eurozone countries and the shortcomings of the reforms set in place. He stressed that Eurozone budgetary capacity would be limited by its very nature, yet the rapporteurs are calling for it to be given disproportionate competences.
Other MEPs, on the other hand, felt that the draft report was a good basis. Paul Tang (S&D, Netherlands) liked the idea of combining budgetary capacity with an incentive to the member states to carry out reforms. On creating a “code of convergence”, he asked: “Should Brussels be telling France what it needs to do to reform its employment market?” Jean Arthuis (ALDE, France) said that ever since day one, the Eurozone has been in the worst of all possible situations: “the rule of co-ownership” is not respected, there is no economic government and convergence has not happened. “We cannot stay as we are, or it will not end well”, he warned.
Marco Valli (EFDD, Italy) slammed measures which he feels serve powerful interests and are being imposed on the people from on high. The source of the Eurozone's problems is none other than an exchange rate system fixed between the 19 countries which share the same currency.
It is worth noting that, on Monday 11 July, a number of Eurozone ministers will address a joint meeting of the two competent parliamentary committees on this dossier. The draft report is expected to be adopted in committee this September and in plenary in October. (Original version in French by Mathieu Bion)