Press release from the group of the progressive alliance of Socialits & Democrats in the European Parliamnet

Brussels, 02 December 2014

S&D Euro MPs welcomed the European Commission’s commitment to addressing the issue of the flexibility within the existing fiscal rules in the eurozone.

The commissioner in charge of economic and financial affairs, Pierre Moscovici, today announced that the Commission will present a communication in early 2015 on this issue.

S&D Group spokeswoman on economic and financial affairs Elisa Ferreira stressed:

« The Socialists and Democrats believe that the success of Juncker’s investment plan will depend greatly on the member states’ ability to invest. That is why we are looking forward to the Commission’s communication on flexibility.

« If the EU keeps too much pressure on the tight fiscal rules, the plan will be useless. It will not work. In particular, the European Commission should consider whether some eurozone members are facing exceptional circumstances which could lead to loosening up the rhythm and the yearly amount of budget cuts. »

S&D Euro MP Pervenche Berès, who will draft the European Parliament’s position on this issue, added:

« Flexibility is no taboo. It is the key for Europe to exit the economic and social crisis.

« The European Commission has already opened the door to leave more room for manoeuvre for member states in implementing the future investment plan. In particular, national contributions to the future European fund for strategic investments will be exempted from the growth and stability pact rules.

« The Commission should go one step further with a broad interpretation of flexibility within the existing fiscal rules. This would be the sign of a smart implementation of the growth and stability pact

S&D Euro MP Udo Bullmann, who will lead the discussion in the European Parliament on the investment plan, stated:

« For several years now, regardless of the economic realities, there are people who have wanted to impose their dogma: cut budgets and public debts. The Commission should make a study looking at all scenarios, including analysing how additional productive investments will consolidate budgets sooner than any non-investment policy. »