Brussels, 02/03/2000 (Agence Europe) - With the adoption of the report on the European Union's economic policy - against the opinion of its rapporteur, Greek Socialist Giorgios Katiforis - the European Parliament invites the Council to take measures to ensure full employment while remaining consistent with price stability and a balanced budget. The report, which had been considerably amended by the right wing of the economic and monetary affairs committee, to such an extent that the rapporteur no longer gave his support to it, was adopted by 233 votes in favour, 232 against and 28 abstentions. It mainly insists on alleviating the administrative burden of companies and eliminating legal inflexibility which, it states, hamper the correct working of the labour market (see also EUROPE of 2 March, p.13).
Nearly all amendments consolidating the rapporteur's ideas are rejected
The Parliament rejected nearly all the amendments proposed by the left-wing factions, and mainly those of the PES which called for: 1) an end, through harmonisation of taxation on capital income and on company profits, to unfair tax competition; 2) a public works programme of EUR 400 billion in the context of trans-European networks; 3) reduction of the average duration of working hours (225 in favour, 266 against and 17 abstentions). The rare amendments adopted included that by the GUE/NGL Group, which calls on the European Commission to set in place Community mechanisms for aid to SME associations in order to improve their competitiveness and their level of organisation, these associations being able to provide different services to their members, such as centralisation of credits, information and legal aid (254 for, 235 against and 15 abstentions). Adopting a PES amendment, the Parliament calls on the Member States to elaborate a social convergence process comprising guidelines, assessment criteria, the exchange of comparative data and national action plans to fight against poverty and social exclusion (390 for, 85 against and 15 abstentions).
Mr Katiforis explained that he had wanted to propose, on the basis of the very good econometric analysis by the European Commission, a "pro-active policy" gearing the European Union to lasting growth. Calling for an action programme with quantified targets for growth and employment, he said the Council should review its attitude compared to the trans-European networks which "are gathering dust", and envisage the issue of securities in euros. Recalling that the EPP-ED and ELDR groups voted against the report as if they were in "olden days", he called on his colleagues not to give in to ultra-liberal theories and to reject the report if the amendments of the Socialist Group are not adopted.
Christian Democrat Karl von Wogau criticised the "Paleo-Keynsian vision" of the rapporteur whom he reproached with continuing to believe that promoting demand is the be all and end all for promoting growth. He urged for greater labour market flexibility, alleviation of administrative and tax constraint and greater market opening. He hoped there would be social security adjustments, improved conditions for research and development, better protection of intellectual property, adjustment of the education and training system, etc. He also called for continued dismantling of public monopolies in the postal services and energy sectors. German Social Democrat Christa Randzio-Plath urged for an economic policy that not only acted on supply but also on demand. In response to the concerns expressed by Mr von Wogfau concerning the current rate of the euro compared to the dollar, she stressed that the current rate facilitates European exports. Spanish Liberal Carles Gasoliba I Bohm called for greater market access and was opposed to all interventionism. French Green member Alain Lipietz pointed out that his group would vote against the report as it was adopted by the economic committee. He hoped there would be a policy geared above all to sustainable development and social economy, with greater reduction of working hours. Considering that the parliamentary committee had taken a "neo-liberal vision" on board, the Greek Communist Ioannis theonas (KKE) gave the rapporteur the support of the GUE/NGL group. French elected member of Union for a Europe of Nations, Georges Berthu, spoke of a "report in waffle", before speaking of the "structural inflexibility to which the euro may be added" as putting a brake on growth.
Commissioner Pedro Solbes Mira stressed that, despite differences, the debate showed "we all agree in saying the current situation is good, and advantage should be taken of it to improve the situation, mainly as far as employment is concerned". He noted that there is not enough private or public investment. "We are aiming at full employment", said the Commissoner, who recommended a budgetary policy consistent with price policy and making possible a monetary policy favourable to growth. "Private investment must be facilitated but public investment should also be improved", he concluded.