30 Amendments of Jörg MEUTHEN related to 2019/2110(INI)
Amendment 7 #
Motion for a resolution
Recital A
Recital A
A. whereas according to the Commission’s forecasts, the GDP growth rate for 2019 stands at 1.2 % of GDP per capita in the euro area and 1.4 % in the EU28, and is expected to rise to 1.4 % and 1.6 % respectively in 202010; ____________________whose year- ahead projections has proved exceedingly inaccurate and unreliable over the last years, notably the forecasts of GDP, investment, inflation and the government budget balance9a, the GDP growth rate for 2019 stands at 1.2 % of GDP per capita in the euro area and 1.4 % in the EU28, and is expected to rise to 1.4 % and 1.6 % respectively in 202010, which is still far below the projected growth for the rest of the world; whereas private consumption has been the main driver of growth over the past years; whereas this casts doubt on the sustainability of recovery as well as future growth potential; ____________________ 9a Marco Fioramanti et al., European Commission’s Forecast Accuracy Revisited: Statistical Properties and Possible Causes of Forecast Errors, DG ECFIN, Discussion Paper 027, March 2016. 10 Commission’s European Economic Forecast – Summer 2019 (Interim) of 10 July 2019
Amendment 10 #
Motion for a resolution
Recital B
Recital B
B. whereas unemployment rates continue on a steady downward path, with an average rate of 7.5 % in the euro area and 6.3 % in the EU28 in May 2019, the lowest since the start of the EU monthly unemployment series, and a further decrease is expected to 7.3 % and 6.2 % respectively in 2020; whereas unemployment rates have for years been unacceptably high, at levels twice as high as those of the rest of the industrialized world;
Amendment 18 #
Motion for a resolution
Recital D
Recital D
D. whereas the general government deficit is expected to rise from 0.5 % to 0.9 % in the euro area and from 0.6 % to 1.0 % in the EU28 in 2019, and to remain at that level in 2020; whereas the debt-to- GDP ratio in 2019 stands at 85.8 % in the euro area and 80.2 % in the EU28 and is forecast to decrease to 84.3 % and 78.8 % respectively in 2020;, taking into account the deteriorating projections for budget balances by the Commission in recent years10a; ____________________ 10aMarco Fioramanti et al., European Commission’s Forecast Accuracy Revisited: Statistical Properties and Possible Causes of Forecast Errors, DG ECFIN, Discussion Paper 027, March 2016.
Amendment 24 #
Motion for a resolution
Recital F
Recital F
F. whereas, in the light of the risks of trade tensions between the US and the China alongside, the persistent uncertainty related to the withdrawal ofconcerning ongoing withdrawal negotiations between the UK fromand the EU, and unsustainable interest rate policies across the developed world, the global outlook risks bending towards the downside;
Amendment 41 #
Motion for a resolution
Recital F b (new)
Recital F b (new)
Amendment 42 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. Notes that while the European economy is growing for the seventh consecutive year, taking into account the detrimental effects of stock market and other asset bubbles in the European market as a result of the ECB’s ultraloose monetary policy, mounting economic risks and uncertainties pose a significant challenge;
Amendment 51 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Agrees that effective structural reforms, accompanied by well-targeted investments and, responsible fiscal policies, a sound monetary policy, appropriate budgetary discipline and ambitious reduction of red tape, would provide a successful compass for preparing the EU for its future and present challenges;
Amendment 66 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Recognises that the average level of debt-to-GDP is projected to decline; notes, however, that the average level still remains significantly above the level required by the Stability and Growth Pact; points out the possibility of rising debt service costs; underlines, therefore, the importance of bringing down overall debt levels, in line with EU fiscal rules; regrets the ultraloose monetary policy of the ECB, which has made it artificially cheap for already highly indebted economic agents within the euro area to take on more debt.
Amendment 77 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Notes, accordingly, with great concern that the average deficit levels appear to be increasing again and that in some Member States deficits above 3 % are projected; underlines that a significant part of the expected expansion originates in countries with high government debt-to- GDP ratios; calls on the ECB to end its ultraloose monetary policy as soon as possible, which has made it artificially cheap for already highly indebted economic agents within the euro area to take on more debt;
Amendment 106 #
Motion for a resolution
Paragraph 7 b (new)
Paragraph 7 b (new)
7b. Rejects legal changes to the Stability and Growth Pact; takes note that the SGP has been violated continuously by almost all Member States, even Germany;
Amendment 107 #
Motion for a resolution
Paragraph 7 c (new)
Paragraph 7 c (new)
7c. Calls for a revival of the no- bailout clause which is a safeguard for financial stability of Member States; recalls that the SGP has been designed as a self-enforcing contract and an expression of the principle of national budgetary responsibility, employing the risk of state bankruptcy as a disciplinary tool to limit the volume of debt a Member State will issue;
Amendment 108 #
Motion for a resolution
Paragraph 7 d (new)
Paragraph 7 d (new)
7d. Warns that the longer the current spending-oriented policy with deficits in almost all Member continues, the clearer it will become that the euro area's integration and prosperity is at risk from growing imbalances;
Amendment 109 #
Motion for a resolution
Paragraph 7 a (new)
Paragraph 7 a (new)
7a. Regrets that some Member States have not made use of unusually low interest rates to structurally reduce their sovereign debt levels;
Amendment 113 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Underlines that reforms which increase competition in product markets, promote resource efficiency and improve the business environment, as well as quality of institutions, including an effective justice system, and quality and efficiency of tax collection, are essential for achieving greater economic resilience for the euro area and Member States; emphasises in this context the importareiterates the urgencey of the single market and the need for its further deepeningcarrying on the fight against over indebtedness of banks, states, and private actors that hampers economic growth;
Amendment 147 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Calls on Member States to support and implement EU actions to combat Aggressive Tax Planningcombat fiscal fraud and tax evasion; recalls that tax competition between countries is the natural consequence of respecting Member States’ sovereignty; consequently rejects harmonisation of direct taxation at the Union level;
Amendment 152 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Calls on Member States to support and implement EU actions to combat Aggressive Tax Planningcombat fiscal fraud and tax evasion; recalls that tax competition between countries is the natural consequence of respecting Member States’ sovereignty; consequently rejects harmonisation of direct taxation at the Union level;
Amendment 158 #
Motion for a resolution
Paragraph 11 a (new)
Paragraph 11 a (new)
11a. Recalls that there is a € 1 trillion stock of non-performing loans in the Euro area, which makes it difficult for banks to channel liquidity to households and businesses; supports Member States’ reforms which help facilitate corporate restructuring, and could potentially help to improve capital allocation and push out lower-productivity firms;
Amendment 160 #
Motion for a resolution
Paragraph 11 b (new)
Paragraph 11 b (new)
11b. Takes note of the fact that the current high level of NPLs on banks' balance sheets is a bad sign for the state of the Eurozone’s financial stability; considers that a lack of financial stability is endangering the euro area as a whole; calls for a significant reduction of NPLs; calls also for a significant reduction of leverage within banks´ balance sheets; insists that taxpayers will not be made liable to bail out banks during the next crisis;
Amendment 164 #
Motion for a resolution
Paragraph 11 c (new)
Paragraph 11 c (new)
11c. Notes with concern that TARGET 2 imbalances are rising in the euro area again, despite a narrowing in trade imbalances, indicating continued capital outflows from the euro area periphery;
Amendment 168 #
Motion for a resolution
Paragraph 11 d (new)
Paragraph 11 d (new)
11d. Recalls that the euro area is a club, which Member States are able to leave without leaving the Union; calls on the Commission to come up with a proposal that creates a supporting legal framework; reminds the Commission that having proper procedures in place is preferable to a chaotic exit that may happen any time as soon as there is another financial turmoil;
Amendment 170 #
Motion for a resolution
Paragraph 11 e (new)
Paragraph 11 e (new)
11e. Stresses that the persistent current account surpluses are the logical consequence of forcing very different economies into a common currency; suggests that these imbalances would exist, but over time be ameliorated in a system of flexible exchange rates that allows for adjustments by currency devaluations; considers that current account deficits in the euro area demonstrate the need for internal devaluation and reform in Member States with current account deficits; reminds Member States with current account deficits that they would probably already be bankrupt if the ECB would not engage in an accommodating fiscal policy, and reminds the ECB that this is in breach of its mandate; notes that current account surpluses signal that a Member State is consuming less than it could, thereby harming its consumers; rejects any mechanism that foresees transfers from Member States with surpluses to other Member States;
Amendment 172 #
Motion for a resolution
Paragraph 11 f (new)
Paragraph 11 f (new)
11f. Rejects employing the ESM as backstop for the SRF; reminds Member States that the ESM is a fiscal institution as it is guaranteed and funded by taxpayers' money via the budget of its Member States; rejects any fiscal backstop in the Banking Union in order to avoid recourse to publicly funded bank bailouts;
Amendment 173 #
Motion for a resolution
Paragraph 11 g (new)
Paragraph 11 g (new)
11g. Rejects the Commission’s proposal to transform the European Stability Mechanism into a European Monetary Fund; recalls that there is no suitable legal base to incorporate the ESM into the Union legal framework; recalls that the ESM is based on the unanimity principle, which guarantees a veto right for every member of the ESM; calls, instead, for the ESM to be phased out as soon as possible;
Amendment 174 #
Motion for a resolution
Paragraph 11 h (new)
Paragraph 11 h (new)
11h. Points out that there are ongoing discussions regarding the appropriate legal basis for the establishment of EDIS as well as the proposed European Deposit Insurance Fund; notes that Article 114 of the Treaty on the Functioning of the European Union is not a suitable legal basis for adopting EDIS; reminds that the profitability of banks is dependent on the Member States' economic, tax, and fiscal policy, which are national responsibilities; considers the importance of the profitability of banks for the safety of deposits; rejects EDIS as it would lead to moral hazard;
Amendment 175 #
Motion for a resolution
Paragraph 11 i (new)
Paragraph 11 i (new)
11i. Reminds the Member States currently engaged in the Exchange Rate Mechanism (ERM II) that their economic and monetary well-being is dependent on the fate of the euro area; considers that various imbalances in these Member States, e.g. housing bubbles, have their root causes in the fixed exchange rate against the euro;
Amendment 176 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Agrees that the economic upswing needs to be supported by public andfurther private investment, particularly in innovation, and notes that there is still an investment gap in the euro area, even though it has benefitted from exceptionally low interest rates for years and financing conditions remain very favourable and despite EFSI; welcomes the fact that in some Member States investments already exceed the pre- crisis level, and regrets that in others investment is still lagging behind or is not picking up at the necessary speed; underlines that the accommodative interest rate policy of the ECB has failed to stimulate overall investment and therefore calls for a normalisation of interest policies as soon as possible;
Amendment 198 #
Motion for a resolution
Paragraph 13
Paragraph 13
13. Calls on Member States, while pursuing policies in full respect of the Stability and Growth Pact, to support public and private investment, improve the quality and composition of public finances, and rebuild fiscal buffers, especially in euro area countries with high levels of public debt;
Amendment 226 #
Motion for a resolution
Paragraph 15 a (new)
Paragraph 15 a (new)
15a. Suggests that every Member State should bear all the consequences of the economic policy it has chosen; calls therefore for the introduction of national insolvency procedures for Member States of the euro area;
Amendment 229 #
Motion for a resolution
Paragraph 16
Paragraph 16
16. NotWelcomes that more than two thirds of the CSRs issued until 2018 have been implemented with at least some progress; regrets, however, that there is evidence of backtracking on elements of major reforms adopted in the past, and is concerned about Member States’ commitment to the CSRs, given that progress on the current recommendations is worse than in previous yearsthe Commission cannot force Member States to comply with its CSR;
Amendment 253 #
Motion for a resolution
Paragraph 18
Paragraph 18