In a resolution on the European semester budget process adopted on Wednesday 26 October, the European Parliament says the Council of the EU and the European Commission should try to ensure that budget correction measures are accompanied by measures to help reduce inequality.
Endorsing the relevant Parliament committee’s position, the MEPs point out that from 2008 to 2014, the number of individuals in the EU exposed to the risk of poverty and social exclusion rose by 4.2 million to a total of more than 22 million people (22.3%). They urge the Commission and member states to make greater efforts to reduce poverty, social exclusion and inequality.
Alfred Sant (S&D, Malta), rapporteur on this issue, said during the debate in plenary on Tuesday that growth remains weak, unemployment is falling but the jobs situation remains gloomy, especially for young people, and investment remains low. On behalf of the Slovak Presidency of the Council of the EU, Slovak Secretary of State at the foreign office Ivan Korčok said that the Council would publish a special conclusions document on youth unemployment in December. Euro Commissioner Valdis Dombrovskis pointed out the three-pronged approach to the EU’s economic policy – encouraging investment, pursuing structural reforms and responsible budget policies. He said these policies would be reasserted in mid-November when the annual growth review is published, which launches the European semester for 2017.
MEPs rejected all the amendments lodged by the GUE/NGL, Greens/EFA and EFDD Groups. The GUE/NGL Group called for effective wealth redistribution policies in order to prevent inequality from worsening, and also called for annulment of the Stability and Growth Pact. The EFDD wanted recognition of the unequal way countries in deficit are treated, which have to bear disproportionately high adjustment costs to remain in monetary union, compared with other countries, such as Germany, which have managed to accumulate excessive surpluses in their current account without anyone bothering them about it. (Original version in French by Mathieu Bion)