Brussels, 27/04/2007 (Agence Europe) - By 277 votes to 142 with 130 abstentions the European Parliament adopted a report on Thursday by Kurt Joachim Lauk (EPP-ED, Germany) hailing the 'great efforts' made by some member states to respect their Stability and Growth Pact (SGP) obligations, but expressing concern at enforcing the preventative aspects of the SGP. Concerned to ensure the SGP is applied rigorously, the MEPs expressed concern 'that the different spreads among the member states in the fields of deficit, debt and growth may widen, which could have the effect of undermining the single currency, stifling economic growth and reducing employment prospects'.
The slow progress in cutting public debt levels in some member states is also highlighted, against the backdrop of an ageing population. The European Commission's projections suggest a huge rise in spending due to the ageing population, and the MEPs express concern that six member states are described as facing a high level of risk (Cyprus, Greece, Hungary, Portugal, the Czech Republic and Slovenia) because of lack of long-term viability of public finance (see EUROPE 9285). The European Parliament urges all member states with unsustainable public finance to announce that any new deficit would be illegal or unconstitutional from now until 2015.
The MEPs are pleased with the exchange at the Eurogroup prior to member states drawing up their national budgets (EUROPE 9411) but feel that discussion on this issue should also take place at the EP in the presence of national parliamentarians. Despite the problems already encountered in this connection, they recommend exploring the option of drawing up a uniform timetable for budget procedures across the EU. The report calls on the Commission to rigorously check the quality of statistics sent in by the member states, and to penalise states if they send in incomplete data. The MEPs regret the lack of political coordination in the eurozone and express concern at differences in member states' budget policy. (ab)