Stability pact, inter-institutional negotiations kick off

Brussels – New Stability Pact, the European Parliament starts inter-institutional negotiations. An attempt is made to reform the common budget rules, with a trilogue starting immediately. MEPs meeting in Strasbourg approve the mandate at 12:20 p.m., by a large majority (431 for, 172 against, 4 abstentions), with inter-institutional negotiations scheduled as early as 1 p.m.: a tight timetable responding to the concerns of the European Commission and the responsible for the Economy, Paolo Gentiloni. “There is not much time left for an agreement.”

The negotiations will not be easy. On the contrary, “they will be tough,” anticipates Margarida Marques (S&D), co-rapporteur of the text, determined to fight for changes that bring more attention to the social sphere. But, she makes it clear, “We go ahead because it is better than going back to the old rules or not having any rules at all. Any other statement is simply naive, unrealistic, and dangerous.” Statements that spark a clash with the Greens, who
preferred not to engage in negotiations at all. The Greens, however, insist. “With this reform, we will not be able to invest in social services,” thunders the group’s co-chair, Philippe Lamberts, in the round of debate preceding the vote. “This reform is a social and geopolitical suicide.” The La Sinistra group is critical as well. “Countries focus on spending and this takes us back to the days of austerity,” argues José Gusmao, concerned about “the unprecedented discretionary power given to the European Commission” in the process of implementing reforms and budget policies that, he warns, “do not include any safeguard clause for public investment.” From the non-attached members comes the voice of the 5 Star Movement, convinced that “the new proposal, German-centric as usual, is a lost opportunity to reform the foundations of a governance that had already proven to be suboptimal.” A proposal that should be scuttled, but instead moves forward.

The commission welcomes the plenary vote. With geopolitical tensions in the Middle East and Ukraine and the resulting uncertainties, “this is not a moment in which the EU can go back to the old rules or have uncertainties about budget rules,” stresses Gentiloni, who now hopes for “a quick compromise.” To have a new stability pact by the end of the legislature requires an inter-institutional agreement “by mid-February,” Gentiloni reminds.

From the EPP, however, comes Ester De Lange‘s reminder to countries like Italy, which are called upon to cut debt by 1 per cent a year, as the pact stands at present. “Realistic and respected rules are needed.”