Out of the crisis and towards European economic governance

The financial crisis laid bare the limits of self-regulation, demonstrating the need for strong EU economic governance, surveillance and policy co-ordination, say two non-legislative resolutions voted by Parliament on Wednesday. As Herman Van Rompuy's economic governance task force unveils its own plans, MEPs approved their own contribution to the EU economic governance debate, which is set to feature high on the October European Council agenda.

In a resolution on measures and initiatives to combat the financial crisis, MEPs call for a strong pan-European and global regulatory and supervisory system which leaves no financial market, instrument or institution off the record book.  The resolution on economic governance broadly backs the Commission's legislative proposals, but goes further on, inter alia, a permanent European monetary fund, European bonds, and the need to tackle budget surpluses as well as deficits.

In a debate before the vote, French MEP Pervenche Berès (S&D), who steered the financial crisis resolution through the Parliament, urged the Council and the Commission to "join forces with the European Parliament, because they have collective responsibility" for finding the way out of the crisis. "We have to rely on our own resources," be it in the field on energy or financial resources, she said, defending the idea of introducing a financial transaction tax. She nonetheless admitted that "no reform can be applied against the will of the Member States", called for "serious European mobilisation so that people can once again trust in the European project".

Diogo Feio (EPP, PT), who drafted the economic governance resolution, criticized Member States for so far having given too little attention to Parliament's stance on economic governance. "Be assured that the Parliament will be sticking to its main objectives throughout the negotiations on the six legislative proposals the Commission has proposed for reforming economic governance", he warned.  This position was strongly supported by several EP political group leaders in the debate which followed.

News source: European Parliament link: article