Coordination of Fiscal Policies Must be Linked to EU 2020 Strategy

S&D Euro MPs today welcomed a commitment from the European Commission to present proposals to strengthen the Euro zone and ensure long term stability but warned that the EU should not engage in a bureaucratic programme of spending cuts.

The Commission made its announcement during a hearing on the Greek crisis with commissioner Olli Rehn in the European Parliament.

Said Udo Bullmann, S&D spokesman for Economic and monetary Affairs: “The Greek crisis shows that we need more Europe, not less. The EU needs to strengthen the coordination of national budgetary policies but this should not lead to a mere arithmetic calculation. The EU needs to link the objectives of national fiscal plans with concrete, economic and employment targets in the framework of the EU 2020 strategy.

“This includes more and better jobs and a decisive improvement in education and the fight against poverty.

“We will succeed in ending state deficits when we focus on smart investments and more jobs to give the economic stimulus needed.

“The decision of the Eurogroup on an aid mechanism for Greece is a step forward. A more ambitious European solution would be even better and has to be developed in order to prevent forthcoming crises.

“The euro zone must do everything to combat speculation and guarantee that member states can refinance their debt with fair conditions if needed in the future.”