Employment and Social Affairs Commissioner Marianne Thyssen has rejected claims that the stability and growth pact and subsequent austerity policies were to blame for factory closures. She delivered a statement to the European Parliament on Wednesday 14 September on the need for a European reindustrialisation policy in light of recent events with Caterpillar and Alstom.
She stated that the two closures and the stability pact were completely unrelated. She said that the pact was crucial for keeping public finances healthy within the EU and supporting sound economic growth. Consequently, the pact does not, in her view, act as a brake to investment.
Her stance is somewhat surprising given that she called earlier in the month for an assessment of the economic impact of the stability pact. “I’m not saying that we have to throw everything out, go back to indebtedness and let the next generation sort out the problems. But we can look at what the consequences of our policies are on investment. However, this has to be done intelligently and carefully. I said assessment not revision”, she told Belgian daily Le Soir at that time (see EUROPE 11616).
A great many MEPs highlighted the rigidity that the stability and growth pact introduced, causing public investment to dry up and, so, hindering economic recovery. Among these MEPs, some, like Gérard Deprez (ALDE, Belgium) and Claude Rolin (EPP, Belgium), belong to groups that back the pact.
Generally, MEPs welcomed the commissioner’s initiative in setting up a working group to address the consequences of the planned closure of the factory in Gosselies, Belgium, by US group Caterpillar (see EUROPE 11619). Several, however, expressed discontent with EU’s reactive, rather than proactive, position and its lack of vision with regard to an ambitious, long-term industrial strategy.
In addition, several speakers, who included Maria Arena (S&D, Belgium) and Philippe Lamberts (Greens/EFA, Belgium), were concerned at the consequences of possible ratification and implementation of transatlantic trade deals with the United States (TTIP) and Canada (CETA). Lamberts was critical of the attitude of Trade Commissioner Cecilia Malmström, who is leading the talks and who apparently recently called for funding for the European Globalisation Adjustment Fund to be increased ahead of the two treaties coming into force. Elsewhere, the issue of the recognition of China’s status as a market economy was also raised several times.
The Slovak Presidency announced that a conference on reindustrialisation would be held in Bratislava from 26 to 28 October. The Competitiveness Council will also discuss this issue when it meets on 29 September. (Original version in French by Pascal Hansens)