Strasbourg, 15/11/2006 (Agence Europe) - In plenary session on 13 November, José Manuel Garcia-Margallo (EPP-ED, Spain) presented the EP's first annual report on economic performance in the euro zone, Parliament's response to the first edition of the European Commission's report on the situation in the euro zone. Mr Garcia called in particular for regular meetings between the European Parliament and national parliaments to discuss economic issues (a meeting of this kind has already been held on the Lisbon Process in Brussels) and for quarterly meetings bringing together the Eurogroup, the European Commission and the Parliament, similar to the regular monetary dialogue between MEPs and the president of the European Central Bank (ECB). European Economic and Monetary Affairs Commissioner Joaquin Almunia told the plenary session that he was very much in favour of such a dialogue. In line with the recommendations of the rapporteur, Parliament also called for better coordination of exchange rate policy and representation of the euro zone countries in international financial institutions. In addition, Parliament repeated its call for better coordination of national fiscal calendars and wanted a league table to show which Member States were making most, and least, progress in implementing the economic reforms of Lisbon Strategy.
In the course of the debate, the rapporteur highlighted the need for greater transparency in the ECB's decision-making process (“We would like to know why it does what it does,” he said), a strict interpretation of the Stability and Growth Pact and more determined implementation by Member States of the Lisbon Process reforms. This debate was set against a background of “a complex political situation” (future of the European Constitution) and “a confused economic situation”, where potential growth of barely 2% was not sufficient to “absorb our unemployment” and maintain our standard of living, he said.
From the autumn economic forecast, which he presented last week (see EUROPE 9300), Mr Almunia said that all the economic indicators “point in the right direction”, but he accepted that the working of the euro zone had to improve, as had its international representation, which needed to be “coherent”. In December, the Commission will adopt its report on the first year of Member States' national reform programmes as part of the Lisbon Strategy, and will carefully assess each country's performance, he said.
French Socialist MEP Pervenche Berès, chairwomen of the EP's economic and monetary committee, also noted that, while there was improvement in some areas in the euro zone, “our growth potential is not being fully used” and the exchange rate was hindering European exports. Greater political “piloting” was required in this area, she felt. She also urged the Commission and the Central Bank not to concentrate only on budget deficits in their assessments of Member States, but to take account of their “strengths and weaknesses” as part of a more general analysis. Using the recent example of Italy as an example, she warned against “grading agencies” playing a leading role in the assessment of the performance of members of the euro zone. (mg)