In an opinion adopted at its plenary session on Thursday 5 July, the Committee of the Regions called for the deepening of Economic and Monetary Union (EMU), currently being discussed by the Eurogroup (see EUROPE 12052), to be an opportunity to relaunch public investment and resolve its current democratic deficit.
“The financial contribution by local and regional authorities in public investments must be given more flexibility. Otherwise there is a serious risk that it will hold back the ability by regions and cities to deliver investments for the benefits of citizens”, said Karl-Heinz Lambertz, the president of the Committee.
The Committee regrets the fact that the proposal on the deepening of EMU, which was presented by the European Commission on 6 December of last year (see EUROPE 11920), fails to lay emphasis on the weakness of public investment in the EU, which has fallen from 3.4% of GDP in 2008 to 2.7% of GDP in 2016. Amongst other things, it calls for co-financing, by the local and regional authorities, of projects supported by the structural and investment funds not to be considered a structural expense within the meaning of the Stability and Growth Pact.
The regional representatives also support the integration of the European Stability Mechanism (ESM) in the EU law, as well as the creation of an EU economy and finance minister. (Original version in French by Lucas Tripoteau)