Strasbourg, 12/03/2003 (Agence Europe) - While stressing the need to improve Member States' budgetary control, the European Parliament calls for flexible and intelligent governance of the Stability and Growth Pact, in the spirit of the European Commission's recommendations. This is highlighted in the reports by Bruno Trentin (PES, Italy), José Manuel Garcia-Margallo y Marfil (EPP-ED, Spain) and Manuel Antonio dos Santos (PES, Portugal), adopted by the EP on Wednesday.
In the Trentin report (adopted by 238 votes to 123 and 133 abstentions), which bears more specifically on implementation of the stability and convergence programmes, the Parliament stresses the need to continue applying the Stability and Growth Pact in a flexible way. It takes out a passage (with the adoption of a Socialist amendment) calling for strict respect of the Stability Pact and rejection of all attempts aimed at weakening it. Like the Commission, the Parliament considers that, in the countries presenting excessive budgetary deficit, it is appropriate to "constantly" reduce the net balance to be financed by 0.5% per year and to keep it under the 3% threshold. It also calls on Member States to constantly keep within the 60% limit of global indebtedness.
In the report by Garcia-Margallo y Marfil (354 votes for, 94 against and 78 abstentions) on the situation of the European economy, the EP said it was in favour of intelligent and flexible application of the Pact according to the modalities proposed by the Commission.
With the adoption of the report by dos Santos (on public financing in EMU in 2002), MEPs again say they are in favour of adjustments that require intelligent and flexible application of the Pact.