On Tuesday 23 April, MEPs debated the reform of the Stability and Growth Pact and then approved the reform of European fiscal rules as agreed with the EU Council in February (see EUROPE 13348/8).
The three legislative texts making up this reform were approved by a comfortable majority comprising the EPP, S&D, Renew Europe and ECR groups. Among the Social Democrats, the French and Belgian delegations voted against. It should be noted that all the Italian MEPs – from both the right and the left – abstained from the vote.
They were approved as follows, although only the first of the three texts was negotiated under the co-decision procedure between the European Parliament and the Council of the EU: - Regulation establishing the new preventive arm of the Pact (367 votes in favour, 161 against, 69 abstentions - see https://aeur.eu/f/bx4 ); - Regulation amending the corrective arm of the Pact (368 votes in favour, 166 against, 64 abstentions - see https://aeur.eu/f/bx5 ); - Directive amending the requirements relating to the budgetary frameworks of the Member States (359 votes in favour, 166 against, 61 abstentions - see https://aeur.eu/f/bx6 ).
According to our information, the reform of the Pact will be ratified by the ambassadors of the EU Member States (Coreper) on Friday 26 April, before being formally adopted at the EU ‘Agriculture’ Council on Monday 29 April.
By the end of September, the Member States will have to submit their first multiannual macroeconomic plan to the European Commission, detailing their fiscal policy and the reforms and investments they intend to make from 2025 onwards and for at least the four-year duration of the plan. This plan will be based in particular on the ‘reference trajectory’ setting out the acceptable level of spending to keep public debt under control, which the Commission will draw up for each country in the spring and which will be the subject of detailed discussions with each capital.
During Tuesday morning’s debate at the European Parliament plenary session, the political groups in favour of the reform highlighted the progress made, which justifies its adoption. According to Markus Ferber (EPP, German), who took over the dossier after the departure of the Dutch MEP Esther de Lange for the cabinet of European Commissioner Wopke Hoekstra, the revised rules will allow “room for fiscal manoeuvre” while putting public finances on a credible consolidation path. “Focusing on net expenditure will lead to greater transparency”, he said.
The European Parliament co-rapporteur Margarida Marques (S&D, Portuguese) stressed the urgent need to bring the reform to a conclusion. It is not the agreement of our dreams, because “we have all had to make concessions that are hard to swallow”, she admitted. However, she said that the package on the table will offer “more room for investment”, particularly in the social field. She pointed to the breakthrough achieved by Parliament at the end of negotiations with the EU Council, which will exclude national co-financing for projects receiving European funds from the calculation of the public deficit, a flexibility she valued at “1% of GDP on average”.
The European Parliament has also restored the balance in the possibility of investing in the climate and digital transitions, social affairs and defence, the Portuguese Socialist pointed out later to a number of journalists, including Agence Europe.
France’s Stéphanie Yon-Courtin said that “Europe will only be able to strengthen its sovereignty if it is credible in fiscal terms”. She regretted that “some opponents are pretending to confuse austerity with responsibility”. Johan Van Overtveldt (ECR, Belgian), who approved the reform, expressed concerns that the Commission would not be able to intervene if public finances got out of hand.
The camp opposing the reform did not mince its words. Speaking on behalf of the Greens/EFA group, Belgian MEP Philippe Lamberts criticised both the Liberals, who want to give handouts to companies, and the Social Democrats, who want to boost people’s purchasing power, two political groups that are in favour of the reform presented. “You are creating the conditions for your political powerlessness” by placing this “straitjacket” around national budgets! – he condemned.
The same holds true for the radical left. France’s Manon Aubry, co-president of The Left group, predicted the introduction of “austerity in perpetuity”, denouncing the “huge social racket of Europeans” and the destruction of the welfare state “to better cajole capital”.
On the other hand, Gunnar Beck (ID, German) condemned a “suicidal pact”, heralding Europe’s “complete defeat” vis-à-vis its international competitors. (Original version in French by Mathieu Bion)