1 Amendments of Pirkko RUOHONEN-LERNER related to 2018/0212(COD)
Amendment 73 #
Proposal for a regulation
Recital 8
Recital 8
(8) In order, in particular, to help Member States whose currency is the euro to respond better to rapidly changing economic circumstances and stabilise their economies by preserving public investment in the event of large asymmetric shocks, a European Investment SThe Stabilisation Function will not resolve the structural competition problems of the euro area: on the contrary. So that the euro countries that are suffering from structural, long-term competition problems do not perpetuate their unemployment and do not delay solutions to their problems by incurring debt, the market mechanism must be allowed to operate. Public support, such as a stabilisation function, maintains the inefficient allocation of resources, because it acts as a brake on the adjustment of the price level to a changed market situation. In this way, long-term unemployment and related labour market exclusion are aggravated and problems become more intractable. If the problems of a euro country affected by an asymmetric shock are only transient, it is not difficult for the euro country concerned to borrow on the financial markets, so there is no need for so-called stabilisation Ffunction (EISF) should be established. s financed from public funds.