At the plenary session of the European Economic and Social Committee (EESC) on Thursday 26 January, the European Commissioner for Economic and Financial Affairs, Pierre Moscovici, reiterated his vision of a more social and democratic Economic and Monetary Union (EMU).
Without its social dimension, the Economic and Monetary Union would be paralysed, the Commissioner said. He believes that the White Paper on the future of the European Union including EMU, to be presented by the Commission on Wednesday 8 March ahead of the 60th anniversary celebrations of the Treaty of Rome, should include the following elements: - promoting "upwards" socio-economic convergence by means of stabilisation mechanisms (e.g. unemployment insurance); - encouraging the Eurozone countries to make commitments to reforms; - rethinking the governance of the euro to allow increased transparency and democratic control; - pressing ahead with the finalisation of banking union in the Eurozone; - laying emphasis on continued investment.
Moscovici also said that he was in favour of the creation of a budget for the Eurozone, a dossier that is causing tension between the main political groups of the European Parliament (see EUROPE 11711). Institutionally, he approves of the creation of the position of 'finance minister' for the Eurozone, who would also be a Vice-President of the Commission and head of a European Treasury controlled by the European Parliament.
Observing that once the divorce between the UK and the EU is finalised, Eurozone GDP will represent 85-90% of the wealth produced in EU of 27 countries, Moscovici borrowed words from Jacques Delors, a former President of the Commission: the euro protects against instability and speculation, is a force in the world, but does not boost the economy.
During the debate, several speakers took the floor to ask the Commissioner about the Commission's actions in the fiscal domain. Giuseppe Guerini (Group III, Italy) expressed concern at increasing social inequality, calling for a sea change in budgetary policy at European level. Christophe Quarez (Group II, France) put forward the idea of a European "social and fiscal snake", with maximum and minimum rates, along the lines of the European monetary snake that limited exchange rate fluctuations between the countries of the European Economic Community in the 1970s. (Original version in French by Mathieu Bion)