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08 March 2011

Olli Rehn: Economic Governance needs one strong model, not many parallel ones


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A functioning EU economic union can be guaranteed only by the package of rules currently before Parliament, and not by competing intergovernmental models, Olli Rehn said. Mr Rehn also warned against complacency about reducing debt, stressing that short-term fire-fighting remains necessary.


"We must avoid creating a duplication of economic surveillance (…) it is only the EU level which can deliver the results for economic governance," Mr Rehn said, stressing repeatedly in his opening remarks and replies to MEPs' questions that policy-makers must concentrate their efforts on the package of measures presented by the Commission and currently before Parliament. 

Economic semester: a tool for integrating good ideas:

Corien Wortmann-Kool (EPP, NL) asked how the enhanced economic policy co-ordination arrangements being proposed by certain Member States relate to the economic governance legislative package.  Mr Rehn replied that many of the co-ordination issues raised by Member States could be included in the "economic semester" plan for Member States to vet each others' national economic policies.

Elisa Ferreira (S&D, PT) urged the Commission to be bolder and table further proposals so as not to run the risk of "being overtaken by events".  Mr Rehn argued however that many of the new proposals from various quarters could, to a large extent, be worked out through the economic semester plan, and therefore that new proposals were not necessarily the right solution.

The wrong approach:

"We have a major democratic problem", warned Sylvie Goulard (ALDE, FR), adding that the Member States needed to grasp that no system would be credible if it were designed and at the same time policed by the Member States.  "It's like hoping that drivers would arrest and fine themselves for breaking the law", she said.  Ms Goulard added that the whole process needed to be extracted from behind closed doors, as it was impossible for anyone to get a clear picture of what was going on.

No balance:

Philippe Lamberts (Greens/EFA, BE) criticised the Commission's latest policy stances on getting the EU economy back on track. "There were positive steps but recently we have heard the old recipe from the Commission: cuts, cuts and cuts. There has been nothing to address taxation, inequalities and our dependency on scarce resources".  "We are still facing contagion possibilities so the priority for the moment is to focus on avoiding this", replied Mr Rehn, adding that fiscal consolidation was key to restoring confidence.

Next steps:

EU Member States are to adopt their overall position on the economic governance package by the end of March, whereas Parliament's Economic Affairs will adopt its position by the end of April.  The two sides will then start talks to thrash out a deal.

Press release
 

 


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