Strasbourg, 15/05/2002 (Agence Europe) - During the EP's debate on the BEPG (Broad Economic Policy Guidelines) and the Stability Pact, many MEPs took a stance in favour of a more voluntarist policy on growth and employment. The rapporteur on the BEPG for 2002, Bruno Trentin, (Democratici di sinistra) told the plenary that, even if forecasts show there will be resumed growth in Europe during the second quarter of 2002, "we cannot simply wait for the United States to recover". In his view, it is necessary to define a framework for a coordinated strategy of economic and social policies in countries of the euro zone and in the EU, able to fight effectively against the trend towards recession. While admitting that sound public finance and a moderate level of the public debt are a base for stability and growth, the Italian former trade union leader felt that, in a wider sense, it is necessary to be able to use the possibilities provided in public and private investment (research and innovation, promotion of lifelong learning, infrastructures adjusted to the new needs of the integrated company systems …). In this context, he states he is in favour of applying the "method of open coordination" (adopted at the Lisbon Summit) for investment policies.
Ioannis Marinos (EPP-ED, Greece), rapporteur on the implementation of the Stability and Growth Pact, felt that the stability and convergence programmes of Member States were conform to the conditions of the Pact despite the worsening of the economic situation, and the difficulties noted in Germany and Portugal. He admitted, however, that the rate of growth remains low and the rate of unemployment too high, especially among the young. In his view, "more voluntarist" economic policies should be used to create more employment. The EP Committee on Economic and Monetary Affairs considers the Pact must be "scrupulously" respected. It condemns the differences noted in Germany and Portugal. Herman Schmid (GUE/NGL), rapporteur for opinion of the employment committee, on the subject of Mr Trentin's report, declared that the BEPG must take into account the changes in the economic situation (economic stagnation). He stressed the role of the regional or local initiatives for job creation. Austrian national Othmar Karas (EPP-ED) felt that those who hope to bring the Stability and Growth Pact into question "are acting in a totally irresponsible way". Robert Goebbels (PES, Luxembourg) states the Socialists "say yes to the necessary stability policy" but "stability cannot be an end in itself, it must serve growth". This is why "Europe needs a more voluntarist growth policy". To do this, it must invest more in European infrastructures". The former Minister for the Economy added that the communication networks and the energy carriage networks are also "a factor of development and growth" and that, ten years after the launching of the transeuropean networks, "we have to note that few projects of the time have come to anything. Worse still, the growth in mobility has led to saturation of all the existing infrastructure networks". Those who recommend liberalisation of rail transport "seem to be ignorant of the fact that the existing capacities on rail networks are already saturated", he said, specifying that this is true not only for passenger but also for freight transport.
Spanish national Carles-Alfred Gasoliba I Böhm recalled that the Liberal Group fully supports the policy of budgetary austerity. This is why "we greatly regret that the Member States, during the Ecofin Council in February, did not support the Commission's proposal" on Germany and Portugal, he said. He added that his group was concerned about the recent announcements made by the current French government. Belgian national Pierre Jonckheer declared that the Greens Group "will not vote for the Marinos report" because it is "in contradiction" with the Trentin report. The Marinos report "urges for strict respect of the stability programmes", he said, before considering that it is "not wise to refuse to open a debate on the Stability Pact and to want to cling at all costs and in respect of strict timetables to budgetary balance". In his view, "there is a connection between the rise in the extreme right in Europe and the fact that the States no longer know how to respond to the elementary needs of their citizens, or at any rate the fact that such needs are becoming less and less well satisfied". In his view, the Trentin report contains "a powerful political message", which consists in saying that the EP "refutes the waiting strategy of Member State governments and urges for stronger qualitative growth".
Christa Randzio-Plath (SPD), Chair of the Committee on Economic and Monetary Affairs, believes Europe needs growth higher than productivity in order to reach full employment. To increase the rate of growth, structural reforms alone are not enough and, she warned, it is also necessary to increase investment in research and technological development, human resources and infrastructures. Miquel Mayol I Raynal (Greens/EFA, Spain) considers the President of the European Central Bank (ECB), Wim Duisenberg, is like Doctor Coué who never tires of repeating that growth is here, "when we could be wondering whether we are not in a crisis". The Stability Pact and the independence of the ECB "remove all margin of manoeuvre from Member States" to face up to the unfavourable economic situation. In his view, in a good economic situation, "when the invisible hand of the markets" works, things go more or less well, the situation becomes unmanageable if it is impossible to respect budgetary dogma. The United States should be taken as an example as it shows pragmatism and does not hesitate to resort to anti-liberal measures when the situation makes this necessary. Pervenche Beres (PES, France) mainly insisted on the Trentin report, stressing that the Broad Economic Policy Guidelines (BEPG) must not be just a purely academic exercise. In her view, national parliaments must be actively involved in them so that they take them into account when the time comes for developing the budgets of Member States.
Stability Pact: No concessions to large countries, says Solbes
Commissioner Pedro Solbes repeated it was necessary to maintain the Stability and Growth Pact "without making political concessions, especially to the large countries", and that the Commission should treat all Member States in the same way, as it demonstrated by proposing to trigger the early warning system against Portugal and Germany. He added that the BEPG and the Pact are not contradictory: the deficit is the number one enemy of growth. In his view, it is wrong to claim that the Stability Pact is rigid as it has shown it is able to function, even in an unfavourable economic situation. The Commission "must ensure that the Stability Pact is applied in the same way in all Member States", he concluded.