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26 October 2012

Plenary Session: Politics and accountability must characterise EU economic coordination


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EU-wide coordination of national budgetary and economic policies must become more political, democratic, and include more stakeholders, says an opinion adopted Friday which evaluates the economic coordination done in 2012.


The opinion also calls on national parliaments to play a greater role in this coordination and urges the Commission to check that countries act on its recommendations. The resolution, drafted by Jean-Paul Gauzès (EPP, FR), takes stock of the various "European Semester" economic policy coordination proposals agreed at EU level and then translated into action in each Member State. It was adopted with 430 votes in favour, 90 against and 8 abstentions.

Less bureaucracy, more politics

European Semester arrangements are too complex and insufficiently political, says the resolution, adding that legitimacy is undermined.  It also pushes for a stronger role for parliamentary scrutiny and asks that the European Parliament be more extensively involved in the next Semester cycle and notably at the early stages.

The resolution notes that in many Member States, national parliaments, social partners and civil society were not involved in the European Semester and asks the Commission to remedy this in 2013. For their part, Member States should develop ways to ensure their parliaments are involved before reform plans are submitted to the EU.

The resolution also asks the Commission to keep a closer eye on how each country implements its recommendations, and the Council to explain why it sees fit to modify country-specific ones.

Growth as well as expenditure control

In future, the Commission needs to focus on a wider spectrum of issues, says the resolution.  It recognises that cutting costs and improving competitiveness remain important, but also says that the EU 2020 growth goals need to be reflected better, as does tackling tax evasion. The resolution also emphasises the need for the Semester to address employment policy much more thoroughly.

The Commission should also pay more attention to the negative spill-over effects that national economic policies can have on other countries, say MEPs, who point out that EU legislation enables the Commission to do more in this area.

Finally, the resolution calls on the Commission to recognise the role of the EU budget in the European Semester process (para 56), since it is an integral part of the EU's public expenditure. It likewise urges Member States to refrain from scaling back the EU budget required to meet the commitments they themselves made in the "Compact for Growth and Jobs".

Background

The European Parliament draws up two resolutions concerning the European Semester, the current one, at the end of the process, and one concerning the house's objectives for the new Semester which is adopted to coincide with the outlining of the Commission's priorities, in the spring. Parliament also holds regular hearings of the different EU players involved in the Semester as well as meetings with national parliaments and finance ministers. The next meeting with national parliaments will be held at the end of January as work gets underway in formulating the goals for the 2013 European semester.



© European Parliament


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