The Socialists and Democrats called today on EU leaders to put forward a concrete and detailed plan to reform the eurozone, during a debate in the plenary session in Strasbourg.

 

 

“It is high time that the EU leaders step up efforts to deliver concrete steps towards deepening the Economic and Monetary Union (EMU) and completing the Banking Union. It’s been six months since the Commission’s proposal, and the Council still hasn't made any progress. We Socialists and Democrats are calling for an ambitious reform which provides the EMU with the necessary tools to deliver growth, cohesion and resilience to shocks.

 

 “We welcome the proposal of a macroeconomic stabilisation fund, but its size should be increased and it should better provide unemployment benefits.  The European Stability Mechanism (ESM) should be integrated into the EU law, and any sovereign debt restructuring mechanism must be avoided. We oppose the integration of fiscal compact into the EU law, and support a golden rule to promote investments. As for the Banking Union, it should be completed with a true fiscal backstop and a European Deposit Insurance Scheme.”

 

 

“Lessons from the 2008 financial crisis must be drawn. The Eurozone needs a specific budget, robust enough and clearly articulated with the Multiannual Financial Framework, to help its members cope with macroeconomic shocks and avert the risk of repeating past mistakes. Preparedness is key if we want to spare ourselves another recession.

 

“We believe that, in the long-term, the ESM should play a stabilising role. It should be further developed and turned into a European Stabilisation Fund (ESF) with adequate lending and borrowing capacities and a clearly defined mandate. The Community method should apply fully here.

 

“Moreover, any further step towards a deepening of the EMU will have to go hand-in-hand with stronger democratic controls. To this end, the role of the European Parliament and national parliaments must be strengthened.”