S&D Euro MPs today called for a shift in economic policy and for further reforms to improve the functioning of the euro area.
They were speaking today in Strasbourg during a joint debate in the European Parliament with the president of the Commission Jean-Claude Juncker and the president of the Eurogroup, Jeroen Dijsselbloem. This was the first time the Parliament held such a large discussion on the draft recommendation on the economic policy of the euro area.
S&D Euro MP and chair of the economic and monetary affairs committee Roberto Gualtieri said:
"Europe is faced with a fragile recovery. We cannot only rely on the accommodating monetary policy led by the European Central Bank. We need to boost supply and demand and stand ready to improve our fiscal stance if necessary. This must be accompanied by strengthened governance. We want to see a fiscal capacity for the eurozone and a further deepening of the Economic and Monetary Union."
S&D Group vice-president responsible for economic and social affairs, Maria João Rodrigues stressed:
"The eurozone is confronted with weak growth, macro-economic imbalances and social divergences.
"We need smart future-oriented investments and greater domestic demand. The eurozone is one big economy, which cannot rely only on exports for solid growth, especially when the global economy is slowing down. All countries need to make an effort to support domestic demand, including countries with high trade surpluses and with more room in their public budgets to spearhead greater investment."
Looking into the near future, S&D Group spokesperson on economic and monetary affairs Elisa Ferreira urged European leaders to respect the promises made to complete the Economic and Monetary Union.
"We need to prepare immediately for the establishment of the conditions to create a fiscal capacity for the eurozone. Without a reinforced budget, the Monetary Union cannot function.
"European institutions also need to respect and comply with all the promises made in the Banking Union in particular, by urgently providing the indispensable permanent credible backstop to the Single Resolution Mechanism, by accelerating the Common Guarantee of Deposits and by allowing the ESM (European Stability Mechanism) to directly recapitalise banks".
