21 January 2013

ECON Committee: MEPs tell Commission to ease up on austerity and focus on growth and tax evasion instead

The latter is the starting shot for the yearly European Semester, a process of economic policy coordination to ensure that national budgets are in line with EU priorities. The economic and monetary affairs committee will vote on her report on 22 January.

The report says there is too much focus on austerity and therefore calls on the Commission to beef up the recommendations on investment for growth, solidarity between Member States and democratic legitimacy, which means the Parliament should get fully involved. MEPs first debated the survey on 28 November 2012, right after it was published.

About the Annual Growth Survey

The Annual Growth Survey is the start of the so-called European Semester. It is a method for economic policy coordination to ensure Member States align their budgetary and economic plans with the Stability and Growth Pact and the Europe 2020 strategy. The survey applies to the EU as a whole, but will also contain country-specific recommendations later on. This is already the third Survey since the European Semester was introduced in 2010.

Priorities for this year

The priorities for this year will remain the same as those listed in the last Annual Growth Survey, namely:

• Reducing national debts without harming growth
• Restoring normal lending to the economy
• Promoting growth and competitiveness
• Tackling unemployment and the social consequences of the crisis
• Modernising public administration.

Easing on austerity

Ms Ferreira, who covers the survey on behalf of the economics committee, pleaded for taking more time to get national budgets back into shape during the debate on 28 November. "We have got to be frank and recognise that the consolidation strategy unfortunately has failed."

Olli Rehn, the commissioner responsible for the euro and economic and monetary affairs, told MEPs during the same debate: "We have come a long way in the past two or three years in reforming our economic governance. We need to continue to work for policies that will help Europe to return next year to recovery."

Press release

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