Brussels, 03/05/2001 (Agence Europe) - This Wednesday, the European Parliament adopted the report by Giorgos Katiforis (ESP) on the annual assessment of the implementation of the stability and convergence programmes. The report welcomes the efforts deployed by the Member States to master the public spending, but notes that only ten of them have managed to achieve a balanced budget and that, in certain States, debt remains abnormally high. The governments are invited to continue their efforts in view of ensuring this balance. The MEPs spoke in favour of the golden rule, that is to say public borrowing used for public investment, in order to authorise public deficits that cover, for example spending on infrastructure.
Commissioner Pedro Solbes, said during the debate that all the Member States except the United Kingdom will achieve a balance in 2002. He hopes that public debt will fall below 60%. On the initiative of Mr Katiforis, Mr Solbes feels that public investment has fallen in an excessive manner. It is possible to create a synergy between private and public investment to institute a novel method of financing, added the Commissioner. He also called in favour of the search, in agreement with the governments, for a more harmonious timetable for the presentation of stability programmes. In his report, Mr Katiforis feels that growth would be below estimates and situated between 2 and 2.5% in 2001. Pedro Solbes confirmed the growth forecasts from the European Commission, announced at 2.8% last week. The European Parliament recommended to the Member States for them to continue the structural reforms to increase flexibility and convergence. Furthermore, he encouraged the creation of special funds aimed as softening the demographic blows felt by the State pensions schemes.