28 September 2011

ALDE Verhofstadt: Six-pack on economic governance is victory for financial stability and basis for growth

Liberals and Democrats welcomed the approval of the six pack, saying they had insisted throughout on the strengthening of the preventive arm of the Stability Pact as one of the essential elements of the package that will contribute to Europe regaining stability and growth.

Guy Verhofstadt, leader of the Liberal group in the European Parliament, said: "Today's victory is entirely due to the Liberals and Democrats' insistence on establishing clear rules that impose more discipline through automatic sanctions. This will  discourage Member States from evading their responsibilities to each other to ensure stability of the eurozone. It is a response to the failure of Member States in the past to respect the rules they themselves had agreed upon".

Moreover, while calling for a quick implementation of the six pack, Verhofstadt concluded: "The six pack is not the panacea to the current economic crisis but it is a vital building block in a future comprehensive framework for economic governance and growth in Europe".

Sylvie Goulard (Modem, FR), rapporteur on budgetary surveillance said: "One of the real innovations introduced by the EP is what we have called the 'economic dialogue'. National ministers/Council will henceforth be required to explain their actions and decisions in a transparent way. By insisting upon more discipline aiming at maintaining sustainable levels of debt we have freed new room for Member States to invest in growth".

As regards eurobonds introduced in her report, Goulard concluded: "The adoption of the six pack has validated the Parliament's request to the Commission to put forward concrete proposals for the creation of an EU bond market, whose ultimate purpose is to incentivise Member States towards a virtuous debt position, to avoid speculation over interest rates and to strengthen the euro as a truly global currency".

Carl Haglund (Svenska Folkpartiet, Finland), rapporteur on enforcement measures to correct macro-economic imbalances, added: "This is a necessary step forward. Thanks to the new and clear rules, the future for the euro is brighter. The previous rules enabled bargaining in the European Council, with the consequence that Member States that should have been forced to take action with regards to their financial problems were instead able to continue on an irresponsible path. In addition to this, the new macro-economic surveillance is broadened and the Commission endowed with the necessary tools to intervene before it is too late."

Sharon Bowles (UK, Lib Dem), chairwoman of the Economic Affairs Committee said: "With the eurozone problems threatening a full-blown global crisis similar to that following the collapse of Lehman's, we are now showing the world that the EU is capable of addressing the flaws in economic governance. Without this vital step, any hope of building long term solutions for the eurozone would be lost."

Press release

© ALDE