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Future of EMU: Democratic control needs to match the pace of reforms. Marianne Thyssen MEP.

Date

20 Nov 2012

Sections

EU Priorities 2020
Euro & Finance

"To put the EU firmly on the road to financial stability and economic recovery, cosmetic touches are not sufficient. The European Parliament wants a thorough overhaul of the Economic and Monetary Union (EMU) in all its aspects. Today we need to make fundamental choices for the Europe we leave to our children and grandchildren," said Marianne Thyssen MEP in reaction to the adoption of her Report with a large majority today.


With her Report, Marianne Thyssen articulates Parliament's position on the roadmap that is being prepared by the Presidents of the EU Council, the Commission, the ECB and the Eurogroup to strengthen the EMU and which should be adopted at the December Summit. Redefining the EMU is vital to remedy the flaws in the Euro area's architecture that were exposed by the economic and financial crisis.

To achieve a stronger architecture, the so-called four pillars of the EMU (its financial, budgetary, economic and democratic leg) must be reinforced. For Marianne Thyssen, democratic control needs to match the pace of reforms and, across the board, the European Parliament, as the Institution that represents all citizens, should play a key role. Mrs Thyssen also underlined that instruments that are currently intergovernmental, such as the emergency fund (ESM), should be enshrined in the European Treaties with accountability to the European Parliament.

The Commission proposal for an integrated banking market with a Single Banking Supervisory System is welcomed as an important stepping stone towards a stronger EMU and greater financial stability. Marianne Thyssen, who is also Rapporteur for this dossier, emphasised that a decision regarding banking supervision should be taken before the end of the year. This will allow the European emergency fund to recapitalise banks directly, ending the vicious circle between failing banks and problematic national budgets.

For the EMU as a whole, Marianne Thyssen underlined that Treaty changes should be looked into in the future, but this should not stand in the way of the many improvements that can already be made under the current Treaty.

For the budgetary union this implies a swift implementation of the Six Pack and the rapid adoption of the Two Pack, both sets of rules aiming at improved compliance with the European budgetary obligations, before considering Treaty changes.

As regards common debt issuance, the European Parliament only accepts a future redemption fund if Member States' budgets are in balance and sufficient mechanisms are in place to prevent future budgetary deficits.

The goals of a stronger economic union should be sustainable economic growth, more jobs and greater social cohesion. "Completing the internal market, implementing existing internal market law, implementing the 2020 Strategy for Growth and Jobs and a targeted use of European budgets are key", said Mrs Thyssen. An active labour market policy reducing structural unemployment and stimulating entrepreneurship should also be developed in all Member States. She also wants to see a 'social pact' included in the EMU overhaul and asks for a mid-term review of the Europe 2020 Strategy for Growth and Jobs.

Finally, the fourth building block, democratic accountability and transparency, is crucial: "Because, if citizens don't buy into the decisions we make today, all our efforts are in vain, and the hope and confidence we have that economic growth is possible again, won't return."

For further information:
Marianne THYSSEN MEP, Tel: +33-3-88175918
Greet Gysen, EPP Group Press and Communications Service, Tel: +32-497-028054

Notes to Editors:
The EPP Group is by far the largest political group in the European Parliament with 270 Members and 3 Croatian Observer Members.

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