20 February 2013

Schulz welcomes deal on two-pack as another step towards stronger economic governance

"These new laws are a key element in building stronger economic governance for the euro area and boosting the EU's armour against further economic crises." Schulz also welcomed the decision to set up an Expert Group to report by March 2014 on the merits of joint eurobills.

The President of the European Parliament Martin Schulz has welcomed today's draft agreement reached in trilogue on the so-called two pack. The two pack regulations focus on strengthening Commission surveillance of national budgetary and economic policy and further economic policy coordination.

European Parliament President Martin Schulz said: "I particularly welcome this proposed agreement and pay tribute to Parliament's rapporteurs, the European Commission services and the Cypriot and Irish Presidencies of the Council. These new laws are a key element in building stronger economic governance for the euro area and boost the EU's armour against further economic crises.

"The European Parliament has secured in the negotiations that the new laws will do more to deliver much needed economic growth. Any proposed national budget cuts should not be made at the expense of reducing investment into the economy. The European Parliament will now be much more closely involved in dealing with countries in severe economic difficulty, including for example when countries apply for financial assistance from the European Stability Mechanism. The European Parliament's role is boosted in guaranteeing democratic accountability of the Commission, ECB and the IMF (Troika).

"As to the European redemption Fund, the decision to set up an Expert Group to report by March 2014 on the merits of joint eurobills is welcome. Although the proposals will not be immediate the idea of the redemption fund remains very much on the table."

Background

The European Parliament is due to vote on the two texts in the March plenary session in Strasbourg (11-14 March 2013). 

The European Parliament rapportuers are Jean-Paul Gauzès for the Economic governance: strengthening of economic and budgetary surveillance of Member States experiencing or threatened with serious difficulties with respect to their financial stability in the euro area. And for economic governance: common provisions for monitoring and assessing draft budgetary plans and ensuring the correction of excessive deficit in the euro area, Elisa Ferreira.

The legislative proposals concentrate on strengthening the European Commission's surveillance of national budgetary and economic policy and further economic policy coordination.

The new laws set out detailed procedures for convincing Member States to alter their national budgets in line with European Commission recommendations.  The one dealing with countries in particularly serious financial difficulties or in receipt of financial assistance provides for even more strict rules, guaranteeing that clear procedures for these circumstances are embedded in EU law.

Press release

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