Economic Governance: "No Deal Without Public Investment"

S&D Euro MPs today warned that they will reject any Eurozone reform that puts sustainable growth and jobs at risk.

The Socialists and Democrats Group in the European Parliament today set out its red lines by tabling a number of progressive amendments to the Commission’s economic governance proposals.

Said S&D spokesman on economic and monetary affairs Udo Bullmann: “The S&D group is in favour of strengthening coordination and surveillance of economic policies. We can no longer share a common currency based on national economic policies.

“We also believe that the European Commission should oversee this coordination. But we do not want the Commission to become the watchdog of budgetary austerity.

“The Commission’s economic governance proposal is simply not acceptable. It slams on the brakes for growth and jobs. Therefore, we need to back efforts by national governments to combine the reduction of public deficits and debts with investment in education, research and development as well as renewable energies and energy efficiency.

“All prominent world economists today agree that Europe suffers a lack of investment. Drawing the lessons from the 90s, drastic fiscal consolidation will only make things worse.”

Said S&D Euro MP Elisa Ferreira, author of the report on economic imbalances: “Mrs Merkel and Mr Sarkozy got it wrong with their competitiveness pact. Europe won’t solve its competitiveness problems through low wages, by making all Europeans work until 67 or by simply destroying our systems of collective bargaining.

“What we need is more growth and employment, more convergence and more fiscal and social cohesion between EU member states. We want EU governments to set public investment targets when they adopt their budgetary objectives. The former should be clearly linked to the development of a sustainable green economy. Surveillance should cover both investment targets and budgetary objectives.

“The EU needs to connect the reform of the Eurozone with its ambitious EU2020 strategy for growth and jobs. This is the only way to go for Europe”.