Statements by Reimer B&Ouml;GE (EPP,DE) and Pervenche BER&Egrave;S , on Future of the EU's report "Budgetary capacity for the Eurozone" during the plenary session in Brussels (01-02/03/2017)

Brussels

statement

BERÈS, Pervenche (S&D, FR)

future of the European Union (T)

BÖGE, Reimer (EPP, DE)

Future of the EU: Statements by Reimer BÖGE (EPP, DE) and Pervenche BERÈS (S&D, FR) on the report "Budgetary capacity for the Eurozone"

SOUNDBITE : Reimer B&Ouml;GE, PPE, DE: First of all it is not about the stabilisation of the Eurozone, because we are on the way placed in a global setting and surrounded by many crises and we need to ask despite the different positions of the member states, do we want to find very clear answers which is actually expected by our citizens concerning freedom and security in a larger dimension. That means of course the stabilisation of the Eurozone, yes because after a crisis you are always before a next crisis. We know how much speculation takes place and we need to achieve 2 things, first, the trust in the eurozone and to bring this trust forward between all member states. So that you believe in the other one and that you stick to the decisions taken and that you support those who are planning to launch reforms in situation of crisis or a shock moment. Secondly you give a sign to those who are observing the eurozone from outside and who are looking eventually for a financial speculation. That implies that we have the will to stabilize the eurozone and we do not give up ourselves, we work for that goal that we have new instruments; that we have growth and employment and a stabilized currency on the long run.

SOUNDBITE (French), Pervenche BER&#200;S (S&amp;D, FR), rapporteur, Euro, the economic area, does not have a specific tool of economical leading. Intellectually, we knew even before the crisis that there was maybe something missing. The crisis shown up that it is compulsory for an economic zone to insure the convergence of its member states and try not to allow their economy diverge. We have the same currency, we cannot allow that the economies are going to divergent otherwise there will be an obligation of overcompensation, or over transfer the tools of riches creation between different spaces.

If there is an asymmetrical shock, that is having impact in one Member State in particular, that Member State needs to be able to react and the rest of the Member States need to help it to react, because if one is affected, so are the others. It is not in the interest of other Member States of the Eurozone to let it happen. Sometimes a state can find itself in such a situation because they didn&rsquo;t make the necessary reforms. But this is not important. What it is important is that if a country member of the Eurozone is having troubles, - as we have seen in the crisis - is the entire zone that is getting fragile. Within the zone, we have taken out one of the action tools of a country in such a situation, which is the devaluating possibility. So therefore there must be another compensation way.

The third point we are saying, when there is symmetric shock, that means it&rsquo;s concerning all the euro zone , for example the oil price risen, a fowling down of the investments level or activities, we must foresee that the euro zone, as a whole can have a pilot tool for its common policy.

SOUNDBITE (French), Pervenche BER&#200;S (S&amp;D, FR), There are several possible ways of financing. You can imagine a specific budget for the euro-zone financed by own resources, by the euro-zone member states. Another potential source of financing is to use the money that the Euro zone member states had already mobilized, organised within what we have called the European Stability Mechanism. You remember that in the middle of the crisis, Greece didn&rsquo;t succeed anymore to obtain financing on the international markets.

SOUNDBITE (French), Pervenche BER&#200;S (S&amp;D, FR), Since than the 19 member countries had subscribed to this mechanism, and today this money are managed in Luxembourg in a very safe manner, I&rsquo;m sure. However, this money is available and can be used in an efficient manner on the tools to be put into practice. So therefore, there is an embryo idea what can be a budget of the euro zone.

SOUNDBITE (French), Pervenche BER&#200;S (S&amp;D, FR), While we are looking at the amount that represent the potential engagement within the European Stability Mechanism, that correspond to 5 % of the GDP of the Euro area , so this is consequent. The third function possible is to make loans.