Strasbourg, 09/06/2005 (Agence Europe) - Whilst regretting the fact that its own role in the reform of the Stability and Growth Pact (SGP) has been limited, the Parliament on Thursday adopted two reports by Othmar Karas (EPP-ED, Austria) on the proposal by the Commission on regulations on budgetary monitoring proceedings and the coordination of economic policies (1466/97) and on the implementation of excessive deficit procedures (1467/97). The former was approved by 311 in favour, 115 against and 175 abstentions (co-operation), and the latter by 320 in favour, 116 against and 163 abstentions (consultation), in two procedures which leave the Parliament with little influence. The occasionally somewhat vague wording of the Commission's proposals, made on the basis of the agreement in last March's Ecofin Council, will leave too much room for manoeuvre and freedom of interpretation to the Member States, the MEPs stress, whereas a change in their behaviour had been hoped for. In these reports, for Parliament calls for the role of the Commission and of Eurostat to be reinforced by an early warning mechanism and the right to check budgetary data on the ground (along the lines of a financial audit mission). It calls for more weight to be given to the debt ratio and to bring the maximum allowable time limit to come back below the 3% threshold to three years, exceptional circumstances notwithstanding. The plenary rejected an amendment by the committee on economic and financial affairs, by just six votes, which would have removed the reference to the Member States' contributions to international solidarity or the unification of Europe, elements which are considered to be impossible to define (EUROPE 8958), from the "relevant factors" to be taken into account.
The report adopted on Tuesday by the European Commission on Italy's excessive deficit (EUROPE 8963) is an "indicator of the fact that we need to finish our discussions on the standards of the Pact as quickly as possible if we are to concentrate on its application", said the Commissioner for Economic and Monetary Affairs, Joaquin Almunia, during Wednesday evening's debate. Mr Almunia intends to conclude the legislative revision procedure "before the end of the month", under the Luxembourg Presidency. Some of the Parliament's demands (better debt monitoring, more regular information about excessive deficits) "can be perfectly well included in the regulation", he said, adding that the Council "will give its opinion formally next Monday". In the view of Othmar Karas, the Pact is " not a prosaic obligation", even though it remains "sullied by one shortcoming: the sinners are made into judges and decide themselves on a line of conduct". Without seeking to call the two revision regulations of the Pact into question, Mr Karas calls for greater clarity in its application. The Pact must be "credible, responsible and measurable", so that it can be "a response to the uncertainties of the European citizens". "I cannot bring myself to feel much sympathy for the Council's agreement", said Alexander Radwan (CSU), who remains confused about how to define small-scale and temporary exceeding of the 3% ceiling. "It should not come as a surprise that in the referendums [on the Constitution], many people think that the euro has led to unemployment", he added, before calling on the Commission not to hesitate to take matters before the Court if the situation requires. In the view of Luxembourg Socialist Robert Goebbels, on the other hand, the people are rebelling because Europe has no other policy to propose than budgetary rigour. 25 heads of government opted for greater flexibility, and the "Parliament should not be more Catholic than the Pope", he said. "Let's stop being pessimistic about Europe and give the consumer some confidence back", he said, explaining: "conducting the economic policy will call for stability, but also growth, and psychological actions in favour of confidence". The proposed revision of the Pact "is more than timely", said Margarita Starkevièiûte (ALDE, Lithuania), who noted that "financial issues are one of Europe's best kept secrets". French Green Alain Lipietz regretted the fact that "the reform of the Pact is still a long way from providing Europe with satisfactory economic governance", and he called for education expenditure to be included among the "relevant factors" and for the implementation of the Kyoto protocol, but an amendment by the Greens/EFA ended up being rejected in the vote. Speaking on behalf of the GUE-NGL, Ilda Figueiredo of Portugal criticised the "Lisbonisation" of the Pact as proposed. UKIP member John Whitaker (IND-DEM) wrote the Pact off as "incapable of functioning", and Eoin Ryan (UEN) also raised the credibility issue, stating that the correct application of the Pact was "the best way" for the EU to enter into competition with the global economy.