During the plenary session of the European Parliament in Strasbourg, Olli REHN, Commissioner for Economic and Monetary Affairs, presents the main outcome of the G20 summit and the next strategic steps the COM proposes to relaunch economic and financial recovery in the EU.

statement

Strasbourg

plenary session

economic governance (T)

REHN, Olli (ALDE, FI)

Economic Governance framework: extracts from the statement by Olli REHN, Commissioner for Economic and Monetary Affairs

https://api.multimedia.europarl.europa.eu/documents/20125/14016722/ebs71508Chapters%5BSD-EN%5D.srt

SOUNDBITE (English), Olli REHN, European Commissioner for Economic and Monetary Affairs, (presented as most important immediate issue- action to restore confidence) The COM is in favor of full transparency, we have advocated the extension of bank stress tests under publication of results by end of July. This will help to reduce uncertainty and restore confidence.

SOUNDBITE (English), Olli REHN, European Commissioner for Economic and Monetary Affairs, We propose to reinforce the surveillance and the correction of macro economic imbalances with an allowed mechanism and corrective. Divergences in competiveness and emerging macro imbalances will be reflected in a scoreboard with an in-depth analysis and with concrete actions when flushing. In the most serious and confirmed cases the COM will make country specific recommendations and could also propose placing a MS in excessive imbalances position.

SOUNDBITE (English), Olli REHN, European Commissioner for Economic and Monetary Affairs, This is not any interference in MS sovereignty, instead it is about making sure that National budgets are consistent with the EU commitment with the MS and will not put at risk finances stability in Europe as a whole.

SOUNDBITE (English), Olli REHN, European Commissioner for Economic and Monetary Affairs, In very concrete terms all MS will submit their stability and convergence programmes and their National reform programmes at the same time in April to allow the Council to have a meaningful ex ante discussion and also to adopt country specific policy guidance by July based on the COM recommendations.

SOUNDBITE (English), Olli REHN, European Commissioner for Economic and Monetary Affairs, In order to strengthen the stability and growth pact, excessive dept needs to be addressed more seriously then in the past. We proposed to set a clear benchmark for defining a satisfactory path of the debt reduction. MS with debt ratios in excess of 60 percent of reference value over GDP could become subject to the excessive deficit procedure if the decline of debt falls short of this benchmark.

SOUNDBITE (English), Olli REHN, European Commissioner for Economic and Monetary Affairs, Having a wider range of incentives and sanctions which are used preventively and used in an earlier stage then it has been possible in the past. Concretely for the euro area MS the incentive would consist over an interest baring deposit imposed temporarily to countries that are in persistent violation of the budgetary rules until this breach is corrected.

SOUNDBITE (English), Olli REHN, European Commissioner for Economic and Monetary Affairs, (in case of non compliance with the rules) - First a suspension of commitments, this wouldn't effect immediately on payments and this would allow time for correction. In the 2nd step if there is non compliance with the recommendations this would imply the cancellation of suspended commitments and subsequent loss of payments.