On Wednesday 12 March, the European Parliament came out in favour of the creation of investment mechanisms at EU level to provide “European public goods”, particularly in the defence sector, in a report on the 'European Semester' budgetary procedure in 2025 adopted by a large majority (469 votes in favour, 162 against and 54 abstentions).
The coordination of socio-economic policies through the 'European Semester' is necessary, but it must be complemented by “other joint investment and financing mechanisms which, thanks to the European scale, make it possible to minimise the cost to citizens of providing European public goods, such as certain defence capabilities that transcend national borders,” said Fernando Navarrete Rojas (EPP, Spanish), rapporteur for the European Parliament, during the plenary session debate.
On the other hand, MEPs rejected (172 in favour, 473 against, 37 abstentions) an amendment by Giovanni Crosetto (ECR, Italian) which encouraged “the rapid activation of the 'national derogation clause' of the Stability and Growth Pact in order to give Member States the budgetary flexibility needed to increase investment in defence without triggering excessive deficit procedures”.
The European Commission is due to present guidelines in the near future on how Member States can activate this clause. The study is based on an increase in annual military spending limited to 1.5% of national GDP over a four-year period, using 2021 as the reference year and the definition of defence spending approved by Eurostat (see EUROPE 13597/12).
See the European Parliament’s report on the budgetary aspects of the ‘European Semester’: https://aeur.eu/f/fwj
The European Parliament also adopted a report on European priorities in employment and social policies (351 votes in favour, 260 against, 70 abstentions), which stresses the importance of reducing the administrative burden on businesses, while safeguarding labour and social rights. Budgetary and economic policies must be used to give concrete form to the ‘European pillar of social rights’, MEPs also stress.
“We are also calling for an update of the European disability strategy and the creation of a European guarantee for employment and skills,” said Maravilla Abadía Jover (EPP, Spanish). And to call for a “European Year of Demography”.
See the European Parliament’s report on the employment and social aspects of the European Semester: https://aeur.eu/f/fwl (Original version in French by Mathieu Bion)