MEPs in the economic and monetary affairs and budget committees in the European Parliament jointly agreed on a roadmap late on Monday to set up a fiscal capacity or 'budget' for the eurozone in order to safeguard the long-term stability of the Economic and Monetary Union (EMU).
The resolution, drafted by S&D MEP Pervenche Berès and EPP MEP Reimer Böge, calls on the European Commission to come forward with a proposal in 2017.
It will be put to a vote in the plenary session next Thursday, together with two other reports on the future of the EU, as the European Parliament’s contribution to the commemoration of the 60th anniversary of the Treaty of Rome in March.
French socialist MEP Pervenche Berès said after the vote:
"With the various crisis and global challenges the EU is facing today, the euro area has to strengthen its integrity and make the best of the currency as soon as possible. The so-called budgetary capacity is one of the new tools that is needed to stabilise the euro area in the long term.
"It is an instrument for solidarity that is highly necessary to help the economies in the eurozone absorb macroeconomic shocks and converge again. It will provide incentives for growth-friendly structural reforms. The achievement of the Banking Union and establishing a Capital Markets Union will increase the long-term stability of the euro area and its resilience to external shocks.
"The European Stability Mechanism (ESM) - which was established in the midst of the financial crisis - should be integrated into the Treaty and should have lending and borrowing capacities and a clearly defined mandate to absorb asymmetric and symmetric shocks. The commissioner in charge of economic and monetary affairs should have a dual role and chair the meetings of the Eurogroup. This is a step forward that the eurozone now has to make."
S&D Group negotiator for the budget committee Paul Tang MEP added:
"With this roadmap, MEPs have recognised that the eurozone in its current design is not able to deliver on the goals of full employment and stability. New tools are needed.
"A fiscal capacity is key for a better allocation of investments in the eurozone. And democratic accountability should be reinforced via a strengthened role for the European and national parliaments."
