MEPs call for swifter response and tighter coordination in Eurozone to avoid tension in financial markets
10 February 2010
EP Liberal leader Guy Verhofstadt, speaking about the Greek situation, said that: "the tactical and strategic error was that the EU didn't intervene immediately and that it followed the wrong approach from the start". He criticized the "lack of cohesion, confidence and solidarity"
MEPs generally urged the Commission and the Council to use the current difficulties in the eurozone to take firm action in favour of more binding economic coordination and to respond more quickly in the future to avoid tension in the financial markets.
Addressing the plenary on the difficult monetary, economic and social situation of eurozone countries, the Council presidency representative Diego López Garrido said "the situation of the public deficit is a clear result of the crisis coupled with strong financial intervention by governments to prevent the collapse of the financial system". On the monetary situation, he said that "despite tension on the stock market, the EU has acted adequately" and "incentives in place should not yet be abandoned".
Fiscal measures, structural reforms and an integrated surveillance mechanism are "the keys to find a solution to present tensions" and to "put Greece back on a sustainable path", said Commissioner Joaquin Almunia, who spelled out the Commission's plans as well as those of Greece. He expressed the Commission's support for the plan proposed by the Greek government and added: "However, there are risks to the programme targets and medium term fiscal adjustments. The macro-economic scenario is rather optimistic (...) such as the estimated efforts to tackle tax evasion during an economic down-turn." Mr Almunia also said that Eurostat must be given more power to audit member state statistics. Concluding the debate, he said that support from member states would not come for free and Greece must make the necessary efforts in return.
"Our tactical and strategic error was that we didn't intervene immediately and that we followed the wrong approach from the start", Guy Verhofstadt (ALDE, BE) said, adding that the situation in Greece showed the failure of the Lisbon strategy. He criticised the "lack of cohesion, the lack of confidence and the lack of solidarity" and stressed that Europe didn't need the IMF to intervene to solve the eurozone's problems.
Pascal Canfin (Greens/EFA, FR) warned that until quite recently Spain was complying fully with the stability criteria but that its private debt "was allowed to explode" and two years on the situation was very poor with a high rate of unemployment: "The stability criteria are important but not enough". "If one has a narrow vision of the Stability and Growth Pact criteria, we risk missing the bigger picture, which will prevent us from seeing the next crisis coming”.
Kay Swinburne (ECR, UK) said that sovereign debt spreads led to speculation on the market, leaving the EU "exposed in times of crisis". She suggested that in the eurozone the ECB should have an oversight of cumulative debt issuance. The EU should also set up a sustainable debt maturity strategy, she said.
Referring to plans for emerging from the crisis, Nikolaos Chountis (GUE/NGL, EL) said we need to review our current models and not attempt to use them again. "The Lisbon strategy is one of the causes of the crisis we are in, never mind it protecting us" he said. Concluding, Mr Chountis stressed that this was a eurozone crisis and not a Greek one.
"We have a disaster in the making in Greece and Europe", said Nikolaos Salavrakos (EFD, EL), contrasting President Barroso's vision of stronger economic, social and employment bonds among member states with the reality of capital-driven markets from which profits are exported without hesitation, giving rise to speculation.
© European Parliament
