The European Parliament once again failed to adopt a majority position on the conduct of economic policies in the euro area, rejecting the ‘Schuster’ draft report on Thursday 22 October (218 votes in favour, 435 against, 33 abstentions).
The integration of social and environmental policy objectives into the budgetary process of the ‘European Semester’ was at the centre of the political battle, as the von der Leyen Commission has committed to do.
As submitted to the plenary session by the competent parliamentary committee (see EUROPE 12583/26), the draft report by German Social Democrat Joachim Schuster stated that the ‘European Semester’ should only take account of these social and environmental objectives.
The S&D group wanted to amend the text with an amendment requesting that the ‘European Semester’ should ensure that the social and environmental policy objectives deriving from the principles set out in the European Green Deal, the European pillar of social rights and the UN sustainable development goals (SDGs) are respected.
This amendment was ultimately rejected (298 votes in favour, 377 against, 18 abstentions) by a majority of the EPP, Renew Europe (aside from the French deputies), ECR and Identity and Democracy groups. As the rejection of this amendment did not constitute its red line, the S&D group voted in favour of the final text, with the exception of the French Socialists, while the Green/EFA group voted against.
The EPP group also opposed the final text, but for another reason. It opposed an amendment adopted by the Renew Europe group calling on the Commission to develop a climate indicator as part of the ‘European Semester’ and not in parallel with the budgetary process.
“There is a race within the European Parliament about who can be greener, but we consider the climate issue more important than making it a political toy. This is why we voted against the report”, said the Hungarian Enikő Győri, on behalf of the Christian Democrats, in a statement. Her German counterpart, Markus Ferber, welcomed the fact that efforts by the left to completely abandon European fiscal rules had been crushed.
The ‘Schuster’ draft report has not been referred back to committee for further work.
In March, the ECON Committee had failed to set guidelines on socio-economic policies in the European Union in 2020 due to a left/right divide (see EUROPE 12439/15).
On Thursday, Parliament adopted by a large majority the ‘Dobrev’ report on social policies in the euro area (see EUROPE 12586/16). (Original version in French by Mathieu Bion)