EP resolution
Growing unemployment - especially among the young, leading to their emigration – the loss of small firms and rising poverty rates, even among the middle class, are the key impacts of the economic crisis and adjustment measures designed by the ECB/EU Commission/IMF "Troika" for Greece, Cyprus, Portugal, Ireland, say Employment Committee MEPs in a resolution. It calls for a jobs and social recovery plan for these countries.
"The moment has come to recover the employment and social situation that was destroyed and to repair the damage. The European social dimension was completely forgotten by those who acted as if Europe was only a creditors' club", said rapporteur Alejandro Cercas (S&D, ES), whose text was adopted by 27 votes to 7, with 2 abstentions.
The conditions imposed in return for the financial assistance have jeopardised the EU's social objectives, notably because little time was allowed to implement the measures and there was no proper assessment of their likely impact assessment on various social groups, says the text. MEPs voice concern that the recovery programmes recommended specific cuts in real social spending in fundamental areas such as pensions and basic services, rather than allowing national governments more flexibility to decide where savings could be made.
Member States and the EU should put in place a job recovery plan once the hardest part of the financial crisis has passed, taking particular account of the need to create favourable conditions for SMEs, for instance by repairing the credit system. The Commission, the ECB and the Eurogroup should review and revise the measures put in place as soon as possible and the EU should support, with sufficient financial resources, the restoration of social protection standards and the fight against poverty, MEPs add.
Press release
"Is the Troika really the solution?" Europarl video © European Parliament
ECON debate - last talks before Troika inquiry findings are established
"Don't blame the fire brigade for fire damage", ECB Exective Board member Benoît Coeuré urged Economic and Monetary Affairs Committee MEPs at a hearing to assess the economic crisis recovery work of the ECB/EU Commission/IMF "Troika". This followed a committee debate about which findings to flag up in the Troika inquiry report, which the committee will vote on in the last week of February.
Mr Coeuré insisted to MEPs that although lessons must be learnt from how the Troika had operated, matters would have been much worse without it.
In both debates MEPs broadly accepted that reforms in the rescue "programme" countries had been necessary and that the financial crisis had served as a catalyst for them. However many pointed out mistakes in the Troika setup that could have been avoided from the very start, thus lessening the difficulties the countries now faced. These included a lack of accountability, a "one-size-fits-all" approach, and possible breaches of fundamental rights.
When quizzing Mr Coeuré, MEPs focused on the role of the ECB, suggesting that the ECB may have erred in recommending labour law reforms and in strongly resisting suggestions that private investors should take a hit in order to reduce Greece's debt.
Press release
Benoît Cœuré's full speech © European Central Bank
EPP - "Socialist inaction cause of high unemployment"
"The economic and financial crisis has highlighted the fragility of public finances, and in other cases of the banking systems in certain countries. The social and economic situation has deteriorated and unemployment has increased. Jobs would not have been lost if Socialist governments had not closed their eyes to the crisis and acted sooner", explained the Portuguese MEP Regina Bastos, after the vote in the European Parliament’s Employment Committee on the employment and social aspects of the role and operations of the Troika with regard to euro area programme countries.
"Our goal was to make the Report objective, realistic and constructive, and avoid summary judgments of the Troika", stated the EPP Group Shadow Rapporteur Regina Bastos. "We cannot ignore the fact that the social situation in the four countries visited by the Troika was already very difficult, as they were facing bankruptcy, and inaction would have had drastic consequences."
Given the incapacity of these countries to honour their responsibilities and to avoid bankruptcy, financial assistance was requested from the EU Member States in the Euro area, the European Commission and the International Monetary Fund. The following economic adjustment programmes were urgent responses to urgent situations. Moreover, the European Institutions and the IMF were not prepared, nor had the right tools to address these problems. The lack of time to perform the adjustment programmes and the inadequate characterisation of the economies of the Member States were the main causes for the increase in the social situations in these countries.
In this context, austerity measures should provide a balanced solution between economic growth and employment, the implementation of structural reforms and fiscal consolidation in the Member States. That said, the direct and indirect social consequences of the economic crisis and economic adjustment programmes should be investigated and action should be taken in particular in combating poverty and creating jobs, not losing sight of the objective of ensuring the sustainability of the public financ es of these Member States.
Full statement © EPP Group
S&D - "Jobs and growth instead of austerity and recession"
We can offer a real alternative to get Europe out of the crisis. Balanced budgets must go together with practical policies to promote jobs, growth and investment. Under right-wing leadership, the EU's economically illiterate austerity politics has created the highest rates of unemployment in its history. Five years after the global financial crash, other regions return to growth while Europe is mired in recession and its public services and welfare systems are being savaged.
Our alternative would include reducing budget deficits more gradually alongside targeted investment and support for the most vulnerable. Independent studies have shown that our plan would boost growth, create jobs and bring down public debt.
Full statement © Socialists & Democrats
© European Parliament
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