Reimer Böge (EPP, Germany) withdrew his name on Monday 4 February from the draft report on the establishment of a European investment stabilisation mechanism, currently under discussion in the European Parliament's 'Economic and Monetary Affairs' and 'Budgets' Committees.
Mr Böge has so far been co-rapporteur with Pervenche Berès (S&D, France) on this issue of fiscal capacity.
The debates in the European Parliament echo the European Commission's proposal of last May (see EUROPE 12148, 12031) to support Member States hit by an asymmetric economic shock. In this last proposal, the creation of an investment stabilisation function is recommended.
According to our information, it would be, in particular, the question of the reinsurance unemployment scheme that would pose a problem and explain Mr Böge's decision. Thus, the EPP Group would have expressed its opposition to the latter tool, which Mr Böge and Mrs Berès proposed to introduce in their amendments and draft compromise, of which EUROPE had a copy.
It would appear that discussions between different political groups are sensitive as to this fiscal capacity, due to differences in ideological interpretation. The divisions would be national, among other things.
Mr Böge's decision should force political families to reform new majorities in an attempt to reach political agreement.
At the ministerial level, policy work on the development of a fiscal capacity proposal is now limited to instruments to support convergence and competitiveness, following the mandate given by the Heads of State or Government at the euro area summit in December (see EUROPE 12177, 12160).
Technical discussions are taking place on the stabilisation function, but opposition from several northern European states, primarily the Netherlands, is currently not sufficient to reach political agreement on this point. (Original version in French by Lucas Tripoteau)