Pervenche Beres, MEP, European Parlianment, Calls For European Economic Governance

Every leading politician in Europe has a concept of economic governance. The Honorable, Pervenche Berès MEP, Chair of the Employment and Social Affairs Committee of the European Parliament, spoke at the TASC conference on October 23, 2010 calling for A Different Recovery. Ms Beres ,is a socialist and social democrat; in selected excerpts she stated: “I do not think that, in Europe, members of the Parliament and Mr. Barroso and Mr. Rehn have the same understanding of the economic governance.”

“Now, I would like to express to you my view on the recovery process we have to propose to EU citizens to ensure a fair way out of the crisis or as I prefer to call it a proper entry strategy in the new sustainable and solidar development model we need to look for.

Public finances must be a concern to us all. But excessive cuts mean killing the recovery before it even start, and it does not prevent your country from being downgraded! (Greece, Spain, Portugal, Ireland).

We must pay careful attention that the austerity programmes do not aggravate the social hardship by making cuts in the social security systems.

You see that due to the speculation of financial actors against states, especially in Greece, Spain and Portugal, some countries have been forced to implement social cutsFinally, we also propose the creation of a Mr. opr Mrs Euro who would be in charge of coordinating the bloc’s economic policies and take the responsibilities that are currently shared by three people. First, he or she would be a vice-president of the European Commission, in charge of economic and monetary affairs. He or she would also chair meetings of the ECOFIN Council and third, chair the regular meetings of the Eurogroup. This institutional innovation will first add consistence to the EU economic policy and second bring a unique representaion of the EU in the various international bodies dealing with financial and economic issues.We all know that the deficit and debt issues constitute right now a major concern for the future of Europe and that European citizens like the Irish people want Europe to propose other measures than sanctions and punishment against countries facing fiscal difficulties.

We think that the conservative solution is extremely dangerous, because it will dampen the recovery path of Europe, lead to a new recession period and increase the gap between EU citizens and their institutions.

With respect to the reform of the financial system, I think that the EU did a quiet good job by providing a new supervisory architecture, by establishing first a European systemic risk board in charge with the detection of risks that could pose a danger for the financial system as a whole and second three sectoral authorities in charge with the supervision of banks, insurances and the markets. Although these authorities could have gained direct supervisory competences on financial institutions, their power will be significant by developing standards to be implemented by national supervisors. They will also have a binding competence by settling disagreement between national supervisors and last but not least, credit rating agencies will be submitted to the direct supervision of the new European Securities and market. authority. Tighter control at the global and regional levels of credit rating agencies is essential in order to control methodology rules they employ, to prevent any conflict of interest and to apply strong sanctions, including fines, when required.”  (The full transript can be found on November issue of IrlishLeft Review)

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