Presenting his 2017 wish-list to the press in Paris on Monday 16 January, the European Commissioner for Economic and Financial Affairs, Pierre Moscovici, described the increasing level of inequality between the countries that make up the Economic and Monetary Union (EMU) as a "worrying phenomenon" (our translation throughout).
The Commissioner said that Europe is healing from the crisis, but too slowly, going on to stress that although it fell below the level of 10% of the active population in 2016, the unemployment rate in the Eurozone is still too high, particularly among young people. He went on to add that "this recovery of our economies is accompanied by a worrying phenomenon: the increase in inequalities between the countries which make up the EMU. This phenomenon of divergences between countries sharing the same currency is endangering a more vigorous recovery".
The Commissioner believes that this situation underlines the full relevance of the European budgetary surveillance rules. The Stability and Growth Pact is vital, but is only effective if it is applied consistently and intelligently. "I do not believe in a Europe that punishes or constrains, but in a Europe that dynamises", Moscovici stressed.
In 2016, Spain and Portugal escaped financial penalties and a freezing of their structural funds in 2017 on the grounds of their insufficient observance of the Pact between 2013 and 2015.
Opinion on the draft revised Spanish budget for 2017 coming soon
The Commissioner also announced that this Tuesday, the Commission will return its opinion on the draft revised Spanish budget for 2017. He hoped that he would be in a position to give Spain some good news, but declined to be drawn on the details at this stage.
In December, the minority government of Mariano Rajoy in the national parliament presented a revised budget detailing how it plans to bring the estimated deficit of 4.6% of GDP in 2016 down to 3.1% in 2017. In particular, it announced the introduction of new environmental taxes, designed to collect up to €7.5 billion, budgetary cuts of €900 million in public administration and an audit of public expenditure in 2017. (Original version in French by Mathieu Bion)