Strasbourg, 14/01/2009 (Agence Europe) - On Tuesday 13 January, the European Parliament adopted the report by Donata Gottardi (PES, Italy) on public finances in the Economic and Monetary Union in 2007-2008. Approved by 521 votes in favour, 47 votes against and 55 abstentions, the own-initiative report is the response from MEPs to the last two annual reports of the European Commission, the central themes of which were effectiveness of the preventive chapter of the Stability and Growth Pact (SGP), on one hand, and the quality of public finance, on the other - elements whose importance is not brought into question in this period of economic and financial crisis and for which the Parliament, like the Commission, calls for future improvements at the level of the EU and at national level.
The current unprecedented instability causes MEPs concern as they note that “in the face of market failures and a lack of rules and supervision, public sector intervention is reassuming a pivotal role, sometimes taking the form of outright nationalisation”. It would therefore be particularly appropriate for the states and the Commission to proceed to an “appropriate assessment of the repercussions for public finances of public sector support and participation in major industries and the financial and credit sector”. Any intervention and use of public funding for rescuing financial bodies should be accompanied by “appropriate supervision, concrete improvements in the governance and business conduct of the enterprise or institution, precise limits on the amounts paid to executives and clear accountability vis-à-vis the public authorities”, the report states. Such wholesale public intervention in several member states to support the banking and finance industry will weigh on public finances and personal incomes, the MEPs state. They add that the tax burden must therefore be “suitably and equitably spread among all taxpayers”. They therefore trust that all financial players will be submitted to adequate taxation and that there will be a gradual and clear reduction in tax pressure on medium and low incomes in order to reduce poverty (not just dire poverty) and promote consumer demand and growth. (A.B./transl.jl)