Activities of Othmar KARAS related to 2020/2075(INI)
Plenary speeches (1)
Review of the macroeconomic legislative framework (debate)
Shadow opinions (1)
OPINION on the review of the macroeconomic legislative framework for a better impact on Europe’s real economy and improved transparency of decision-making and democratic accountability
Amendments (37)
Amendment 1 #
Draft opinion
Paragraph -1 (new)
Paragraph -1 (new)
-1. Underlines that the Covid-19 crisis shows again the importance of the Union's economic governance framework, which has been strengthened as a response to the financial crisis of 2008 but needs to be developed further; stresses that the economic governance framework can only unfold its full potential if the Member States implement their reform commitments; points out that in 2019, six out of ten country-specific recommendations were not sufficiently implemented by the Member States; calls for better implementation and ownership of reform commitments, better enforcement of the rules-based framework, better avoidance of moral hazard and the full respect for the rule of law and the corresponding Treaty requirements such as the deficit and debt criteria;
Amendment 3 #
Draft opinion
Paragraph 1
Paragraph 1
1. Stresses the need to strengthen democratic scrutiny of the European Union’slegitimacy and accountability of the economic governance instrumentsframework; calls onfor the Commission and the Council to respond to that need, in particular through closer and ex ante involvement ofintegration of intergovernmental constructions such as the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union (the "Fiscal Compact") into the EU legal framework as well as for the incorporation of the European Stability Mechanism (ESM) and the Single Resolution Fund (SRF) into EU law; believes that to improve ownership, responsibilities must be assigned at the level where decisions are taken or implemented; calls for the Efuropean Parliather development, of the national inter-parliaments, the social partners and civil societyary conference foreseen in Article 13 of the Fiscal Compact, to allow for substantial and timely discussions where needed;
Amendment 7 #
Draft opinion
Paragraph 2
Paragraph 2
2. CRecalls forthe importance of parliamentary scrutiny in the econclusomic governance of the Union; welcomes the adoption of anthe interinstitutional agreement in order to formalise parliamentary scrutiny of every stage of the European Semesters between the European Parliament, the Council and the Commission on better law-making as well as on budgetary discipline, on cooperation in budgetary matters and on sound financial management, as well as on new own resources, including a roadmap towards the introduction of new own resources; calls on the Commission to ensure adequate parliamentary scrutiny in its review of the Union's economic governance framework;
Amendment 11 #
Draft opinion
Paragraph 3
Paragraph 3
3. Calls urgently on the Commission to closely integrate the European Pillar of Social Rights into the economic governance of the Union; Underlines the importance of coordinating the economic, social and environmental policies in the Union; stresses that the Union's economic governance framework aims to ensure sound public finances, to prevent excessive macroeconomic imbalances, to support structural reforms, to create more jobs and growth and to boost investment while taking into account the Union's economic, social and environmental objectives; stresses the importance of the implementation of the European Pillar of Social Rights (EPSR); notes that the Social Scoreboard is taken into account for monitoring the Member States' performances related to the EPSR's principles; recalls that the EPSR affirms that social partners should be consulted on economic, employment and social policies according to national practices;
Amendment 19 #
Motion for a resolution
Citation 37 a (new)
Citation 37 a (new)
— having regard to the European Auditor's Special Report 03/2018 Audit of the Macroeconomic Imbalance Procedure (MIP),
Amendment 20 #
Motion for a resolution
Citation 37 b (new)
Citation 37 b (new)
— having regard to the European Court of Auditor's Special Report 16/2020: The European Semester – Country Specific Recommendations address important issues but need better implementation,
Amendment 22 #
Draft opinion
Paragraph 4
Paragraph 4
4. RecallNotes that the Eurogroup and the Euro Summit are informal formations of the Union; notes that this represents a significant impediment to the democratic legitimacy of the Union as a wholeintergovernmental forums of discussion; calls on the Member States to act within the Community framework ensuring the European Parliament's role as co- legislator and its right to democratic oversight;
Amendment 32 #
Draft opinion
Paragraph 5
Paragraph 5
5. Stresses that the suspensactivation of the famous convergence criteria which prohibited having government debt above 60% of GDP and a general government deficit above 3% of GDP made possible the essential public investment for responding to the health, sogeneral escape clause does not suspend the procedures of the Stability and Growth Pact (SGP) but allows the Member States to depart temporarily from the adjustment path towards the medium- term budgetary objective, provided that this does not endanger fiscal sustainability in the medium term; welcomes that the general escape clause allows the Commission and the Councial and economto undertake the necessary policy crisis; welcomes the speed with which it was possible to apply the general escape clauoordination measures within the rules- based framework of the SGP; stresses that the general escape clause should be lifted as soon as epidemiological conditions allow for economic activity to normalise;
Amendment 41 #
Draft opinion
Paragraph 6
Paragraph 6
6. Recalls the importance of parity; regrets that only applicatgender equality enshrined in article 23 of the Charter of Fundamental Rights of the European Union; recalls that the Union's from male candidates have been submitted to Parliamenteconomic and monetary affairs nominations are to respect the principles of qualification, experience and gender balance; calls for the lnatest posts to be filled in the economic bodies of the Unionional and EU institutions to ensure that these principles are respected;
Amendment 48 #
Draft opinion
Paragraph 7
Paragraph 7
7. ConsiderStresses that the establishment of an Economic and Monetary Union (EMU) is inseparable from consolidation of the rule of law; welcomesconomic governance in the Union is essential in order to identify the need for action to ensure sound financial management, growth and employment; notes, however, that it cannot replace the necessary strengthening of the Economic and Monetary Union (EMU); underlines that the EMU must be further deepened in light of the ‘Five Presidents’ Report’ of 2015 and the ‘Reflection Paper on the agrdeempent on a regulation for a general regime of conditionality foring of the EMU’ of 2017 and the corresponding positions of the European Parliament; stresses that the Union's economic governance is stemming from the Treaty and is inseparable from the respect for the rule of law; welcomes the adoption of the regulation on the protection of the Union's budget in case of generalised deficiencies as regards the rule of law in Member States;
Amendment 48 #
Motion for a resolution
Paragraph 1
Paragraph 1
1. WelcomesTakes note of the Commission communication of 3 March 2021 entitled ‘One year since the outbreak of COVID- 19: fiscal policy response’ and takes note of the proposed conditions for deactivating the general escape clause (GEC); highlights that deactivation of the GEC should be conditional upon the health, social and economic situation across Member States in order to ensure that fiscal support is provided for as long as neededthe Union;
Amendment 56 #
Draft opinion
Paragraph 8
Paragraph 8
8. Stresses the importance of an economic governance debate as part of the Conference on the Future of Europe; calls for the conclusionsommits itself to a genuine follow-up of that ce Conference to be properly taken into account, even if they mean amending the Treatieswithout delay, with legislative proposals, initiating Treaty change or otherwise; calls on the other two institutions to make the same commitment.
Amendment 58 #
Motion for a resolution
Paragraph 1 a (new)
Paragraph 1 a (new)
1a. Notes that the coordinated policy response to the Covid-19 crisis proves that the current framework for economic governance provides a high degree of flexibility and counter-cyclicality;
Amendment 64 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Agrees with the European Fiscal Board (EFB) on the importance ofthat it would be desirable to havinge a clear pathway towards a reformed fiscal framework prior to the deactivation of the GEC, but insists that it is not a necessary precondition for the deactivation of the GEC;
Amendment 71 #
Motion for a resolution
Paragraph 3
Paragraph 3
Amendment 81 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Considers that economic indicators and adjustment paths need to be interpreted cautiously, and therefore calls for the Vade Mecum and the code of conduct of the Stability and Growth Pact to be revised vis-à-vis the benchmarks needed to calculate such adjustment needs and paths; stresses that fiscal guidance should avoid pro-cyclical biases, promote upward convergence and counteract macroeconomic imbalances; calls for special accounting treatment for loans from Next Generation EU (NGEU) related spending;
Amendment 90 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Calls for a continued expansionary fiscal stance for as long as needed and for it to be shifted to support the recovery from the COVID-19 pandemic and a green, digital and inclusive transformation while ensuring fiscal sustainability; considers that the fiscal support measures should become more targeted as the recovery progresses; calls on the Commission not to have the general escape clause activated longer than strictly necessary; calls on the Commission to develop a credible exit strategy from the crisis measures;
Amendment 112 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Welcomes the coordinated policy response of governments and EU institutions aimed at avoiding a sharp increase in corporate insolvencies and unemployment; warns that an abrupt and uncoordinated withdrawal of support measures could lead to financial distressslow down the speed of the economic recovery; points out, however, that the robust fiscal response to the Covid-19 crisis raises new concerns in relation to debt sustainability;
Amendment 118 #
Motion for a resolution
Paragraph 7 a (new)
Paragraph 7 a (new)
7a. Notes that the Covid-19 crisis has shown that those Member States that have built fiscal buffers ahead of time, were in a better position to quickly mobilise fiscal stimulus packages without the associated rise in borrowing costs; notes that his example proves the value of a prudent approach to fiscal policy;
Amendment 135 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Stresses the importance ofNotes that complementarity between monetary and fiscal policies have helped to deliver the required support post- COVID-19; considers that the low interest rate environment has implications for fiscal poECB's primary objective is price stability and that monetary policy support can be withdrawn at any point in time in light of unfavourable developments in relation to price stabilicty; warns against a premature tightening of monetary and fiscal policyMember States against relying too heavily on an accommodating monetary policy stance;
Amendment 145 #
Motion for a resolution
Paragraph 9
Paragraph 9
Amendment 166 #
Motion for a resolution
Paragraph 11
Paragraph 11
11. Highlights that public debt levels have increased and that some Member States already have a sizeable debt legacy; notes with concern that the average debt- to-GDP ratio of EU Member States will surpass 100% in 2021; notes that circumstances have changed since the Maastricht criteria were defined and that inflation and interest rate levels are considerably lower today; points out that this environment will not necessarily last going forward and that the interest rate environment can change fast, while reducing debt levels may take a considerable period of time;
Amendment 182 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Stresses that debt service costs are expectedlikely to remain low for the foreseeablenear future and primary deficits are likely tomay be offset by favourable interest-growth differentials; further considers that as long as the differentials are negative it is possible to sustain and progressively reduce high debt levels; points out though that some Member States have had structural problems to achieve sufficiently high growth rates in the past;
Amendment 210 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. Stresses the importance of pursuing a broad and transparent DSA, transparent and thorough debt sustainability assessment in order to set an appropriate country-specific path, using innovative tools and techniques such as stress tests and stochastic analysis to better reflect risks to public debt dynamics;
Amendment 250 #
Motion for a resolution
Paragraph 16 a (new)
Paragraph 16 a (new)
16a. Notes that as a general rule public borrowing should only be used to finance productive investments and must not be used to finance recurring general expenditures;
Amendment 256 #
Motion for a resolution
Paragraph 17
Paragraph 17
17. Suggests focusing the fiscal targets on the achievement of a single credible debt anchor and a declining path towards it aimed at reducing high debt ratios in a realistic and reasonable period of time and differentiated according to the existing debt level of the Member States;
Amendment 265 #
Motion for a resolution
Paragraph 18
Paragraph 18
18. Proposes an expenditure rule with a 20 20 ceiling on nominal public expenditure when a country’s public debt exceeds a certain threshold; proposes that in such a case, the annual expenditure growth rate of that Member State shall be two percentage points lower than the average GDP growth rate of the past three years; _________________ 20 A ceiling fixed for 3-5 years that would depend on the expected potential output growth, expected inflation and the distance from the debt anchor.
Amendment 274 #
Motion for a resolution
Paragraph 19
Paragraph 19
19. Notes that the country-specific path outcome should result from a discussion between each Member State and the Commission, after a consultation with the EFB in the context of the European Semester; considers that the expenditure rule should also include a correction mechanism to remove cyclical items;
Amendment 281 #
Motion for a resolution
Paragraph 20
Paragraph 20
20. Underlines that expenditure rules allow forhave built-in automatic stabilisers to operate and are under the direct control of the governmentation properties1a; argues that while potential output growth is unobservable and has to be estimated, it is less likely to be subject to revisions than the output gap; _________________ 1a See. p. 89 of EBF Assessment of EU fiscal rules with a focus on the six and two-pack legislation.
Amendment 288 #
Motion for a resolution
Paragraph 21
Paragraph 21
21. Proposes, in line with the EFB, ‘ onthat the general escape clause, should only be triggered based on an independent and thorough economic judgeassessment’; notes however, that such assessment should be based on pre-defined metrics, thresholds and procedures;
Amendment 294 #
Motion for a resolution
Paragraph 22
Paragraph 22
Amendment 357 #
Motion for a resolution
Paragraph 26
Paragraph 26
26. Stresses the importance of the MIP in identifying and taking preventive and corrective actions against emerging imbalances; points out, however, that the potential of this mechanism has not been fully exploited on account of its structural weaknessespoor enforcement;
Amendment 363 #
Motion for a resolution
Paragraph 26 a (new)
Paragraph 26 a (new)
Amendment 365 #
Motion for a resolution
Paragraph 27
Paragraph 27
Amendment 383 #
Motion for a resolution
Paragraph 29
Paragraph 29
29. Underlines the importance of the EU institutional framework and of the community method to set and enforce the rules and to safeguard and enhance strong political ownership and legitimacy;
Amendment 407 #
Motion for a resolution
Paragraph 30 a (new)
Paragraph 30 a (new)
Amendment 414 #
Motion for a resolution
Paragraph 32
Paragraph 32