Activities of Emilie TURUNEN related to 2011/0385(COD)
Shadow opinions (1)
OPINION on the Proposal for a Regulation of the European Parliament and of the Council on the strengthening of economic and budgetary surveillance of Member States experiencing or threatened with serious difficulties with respect to their financial stability in the euro area
Amendments (31)
Amendment 28 #
Proposal for a regulation
Recital 1
Recital 1
(1) The unprecedented global crisis that has hit the world over the last three years has seriously damaged economic growth and financial stability and provoked a strong deterioration in financial, economic and social conditions and of the government deficit and debt position of the Member States, leading a number of them to seek financial assistance outside the framework of the Union.
Amendment 31 #
Proposal for a regulation
Recital 1 a (new)
Recital 1 a (new)
(1 a) Article 9 of the Treaty on the Functioning of the European Union provides that, in defining and implementing its policies and actions, the Union is to take into account requirements linked to the promotion of a high level of employment, the guarantee of adequate social protection, the fight against social exclusion, and a high level of education, training and protection of human health.
Amendment 33 #
Proposal for a regulation
Recital 2
Recital 2
(2) The full consistency between the Union multilateral surveillance framework established by the Treaty and the possible policy conditions attached to this financial assistance, coupled with incentives to promote sustainable growth, employment and social progress, should be enshrined in Union law. The economic and financial integration of the Member States whose currency is the euro calls for a reinforced surveillance to prevent a contagion from a Member State experiencing difficulties with respect to its financial stability to the rest of the euro area.
Amendment 38 #
Proposal for a regulation
Recital 4
Recital 4
(4) A Member State whose currency is the euro should be subject to enhanced surveillance when it is experiencing - or at risk of experiencing - severe financial disturbance, with a view to ensuring its swift return to a normal situation and to protecting the other euro area Member States against possible negative spill over effects. This enhanced surveillance should include a wider access to the information needed for a close monitoring of the economicsocial, employment, fiscal and financial situation and a regular reporting to the Economic and Financial Committee (EFthe establishment of a regular report to the European Parliament, the Economic and Financial Committee (EFC), the Employment Committee (EMCO) and the Social Protection Committee (SPC) or to any sub- committee the lasaid committeres may designate for that purpose. The same modalities of surveillance should apply to Member States requesting precautionary assistance from the European Financial Stability Facility (EFSF), the European Stability Mechanism (ESM) the International Monetary Fund (IMF) or another international financial institution.
Amendment 39 #
Proposal for a regulation
Recital 5
Recital 5
(5) The surveillance of the economic, fiscal, employment and fiscsocial situation should be strongly reinforced for Member States under macro- economic adjustment programme. The latter shall contain measures that have the integrated aim to restore financial stability and achieve the objectives of the 'Jobs and Growth strategy'. Member States shall report progress on both aspects. Because of the comprehensive nature of the lattermacro- economic adjustment programme, the other processes of economic and fiscal surveillance should be suspended for the duration of the macro-economic adjustment programme, with a view to avoiding a duplication of reporting obligations.
Amendment 41 #
Proposal for a regulation
Recital 7
Recital 7
Amendment 45 #
Proposal for a regulation
Article 1 – paragraph 2 a (new)
Article 1 – paragraph 2 a (new)
2 a. The application of the regulation shall fully respect Article 152 of TFEU and the recommendations issued under this regulation shall respect national practices and institutions for wage formation. It shall take into account Article 28 of the Charter on Fundamental Rights, and accordingly shall not affect the right to negotiate, conclude and enforce collective agreements and to take collective action in accordance with national law and practices.
Amendment 47 #
Proposal for a regulation
Article 2 – paragraph 1
Article 2 – paragraph 1
1. The Commission may decide to make a Member State experiencing severe difficulties with regard to its financial stability subject to enhanced surveillance. The Member State as well as the social partners concerned shall be given the possibility to express its views beforehand. The Commission shall decide every six months whether to prolong the enhanced surveillance.
Amendment 49 #
Proposal for a regulation
Article 3 – paragraph 3 – point c a (new)
Article 3 – paragraph 3 – point c a (new)
(c a) communicate any up to date information needed for the close monitoring of progress towards the achievement of the EU 'growth and jobs strategy' based on the indicators developed in the Joint Assessment Framework;
Amendment 54 #
Proposal for a regulation
Article 3 – paragraph 4
Article 3 – paragraph 4
4. The Commission shall conduct, in liaison with the ECB and the International Labour Organisation (ILO), regular review missions in the Member State under surveillance to verify the progresses made in the implementation of the measures mentioned in paragraph 1, 2 and 3. It shall communicate every quarter its findings to the Economic and Financial Committee (EFC), the Employment Committee (EMCO) and the Social Protection Committee (SPC) - or to any subcommittee the lasaid committeres may designate for that purpose - and assess notably whether further measures are needed. These review missions shall replace the onsite monitoring foreseen in Article 10a(2) of Regulation (EC) No 1467/97.
Amendment 56 #
Proposal for a regulation
Article 3 – paragraph 5
Article 3 – paragraph 5
5. Where it is concluded - on the basis of the assessment foreseen in paragraph 4 - that further measures are needed and the financial, economic and social situation of the Member State concerned has significant adverse effects on the financial and economic stability of the euro area, the Council, acting by qualified majority on a proposal from the Commission, may recommend to the Member State concerned to seek financial assistance and to prepare a macro-economic adjustment programme. The Council may decide toshall make this recommendation public.
Amendment 60 #
Proposal for a regulation
Article 3 – paragraph 6 – introductory part
Article 3 – paragraph 6 – introductory part
6. Where a recommendation under paragraph 5 is made public:
Amendment 62 #
Proposal for a regulation
Article 3 – paragraph 6 – point a
Article 3 – paragraph 6 – point a
(a) the relevant Committees of the European Parliament may invite representatives of the Member State concerned to participate to an exchange of views;
Amendment 63 #
Proposal for a regulation
Article 3 a (new)
Article 3 a (new)
Article 3 a Sustainable recovery programme 1. A Member State under enhanced surveillance shall adopt, in close cooperation with the Commission, a sustainable recovery programme aimed at ensuring sustainability of public finances and economic recovery. 2. The sustainable recovery programme shall identify multiannual targets on public investment and social expenditure aimed at preserving the conditions for achieving the objectives of the EU growth and jobs strategy. The sustainable recovery programme shall include, taking account of structural weaknesses, specific priority programmes and projects to be implemented in order to stabilise aggregated demand. 3. The sustainable recovery programme shall include any actions foreseen to mobilize EU resources related to the following instruments: - The European Globalisation Adjustment Fund, - The Structural Funds, - EU Project Bonds, - The Horizon 2020 Framework Programme. 4. The sustainable recovery programme shall be annexed to the documents to be communicated to the Commission in accordance with Article 3, paragraph 3.
Amendment 64 #
Proposal for a regulation
Article 4
Article 4
A Member State wishing to obtain financial assistance from one or several other States, the EFSF, the ESM, the International Monetary Fund (IMF) or another institution outside of the Union framework shall immediately inform the European Parliament, the Council, the Commission and the ECB of its intention. The EFC, or any subcommittee the latter may designate for that purpose, shall hold a discussion on this envisaged request, after having received an assessment from the Commission.
Amendment 68 #
Proposal for a regulation
Article 6 – paragraph 1
Article 6 – paragraph 1
1. A Member State receiving financial assistance from one or several other States, the IMF, the EFSF or the ESM shall prepare in agreement with the Commission - acting in liaison with the ECB and the International Labour Organisation (ILO) - a draft adjustment programme aimed at re- establishing a sound and sustainable economic and, financial and social situation and restoring its capacity to finance itself fully on the financial markets. The draft adjustment programme shall take due account ofbe fully compatible with Article 9 of the Treaty on the Functioning of the European Union and with the current recommendations addressed to the Member State concerned under Articles 121, 126 and/or 148 of the Treaty- and its actions to comply with them - while aiming at broadening, strengthening and deepening the required policy measures. Member States shall include in their macro-economic adjustment programmes an updated and detailed description of projected multiannual expenditure targets directly related to the achievement of the objectives embedded in the EU jobs and growth strategy, including public investments. The detailed description referred to above shall duly explain differences of projected expenditure from the most recent Stability Programmes.
Amendment 72 #
Proposal for a regulation
Article 6 – paragraph 1 a (new)
Article 6 – paragraph 1 a (new)
1 a. A Member State under a macroeconomic adjustment programme shall, in close coordination with the Commission, adopt a sustainable recovery programme identifying multi-annual targets on public investment and social expenditure aimed at preserving the conditions for achieving the objectives of the EU growth and jobs strategy. The sustainable recovery programme shall identify and select a number of specific priority programmes and projects aimed at stabilising aggregated demand, enhancing sustainable growth and addressing structural weaknesses of the Member State. The sustainable recovery programme shall also specify plans for frontloading and mobilising financial resources including, EIB loans as well as EU financial instruments. The sustainable recovery programme report shall be integrated in the adjustment programmes and shall be updated on a yearly basis.
Amendment 75 #
Proposal for a regulation
Article 6 – paragraph 3
Article 6 – paragraph 3
3. The Commission, in liaison with the ECB and the ILO, shall monitor the progress made in the implementation of the adjustment programme and inform every three months the EFC or any subcommittee the latter may designate for that purpose as well as the European Parliament and the Parliament of the Member State concerned . The Member State concerned shall give the Commission its full cooperation. It shall in particular provide to the Commission all the information that the latter deems necessary for the monitoring of the programme. Article 3(3) shall apply.
Amendment 78 #
Proposal for a regulation
Article 6 – paragraph 4
Article 6 – paragraph 4
4. The Commission - in liaison with the ECB and the ILO - shall examine with the Member State concerned the changes that may be needed to its adjustment programme. The Council, acting by a qualified majority on a proposal from the Commission, shall decide on any change to be made to the adjustment programme.
Amendment 82 #
Proposal for a regulation
Article 6 – paragraph 7
Article 6 – paragraph 7
7. The relevant Committees of the European Parliament may invite representatives of the Member State concerned to participate to an exchange of views on the progress made in the implementation of the adjustment programme.
Amendment 85 #
Proposal for a regulation
Article 9
Article 9
Amendment 88 #
Proposal for a regulation
Article 10 a (new)
Article 10 a (new)
Article 10 a Compatibility with the Union's growth and employment targets The implementation of macro-economic adjustment programmes in the context of this Regulation shall not constitute grounds for a Member State to fail to meet its obligations in regard to growth in the Union and the employment strategy, nor for the Union to fail to meet or for it to neglect its general obligation under Article 9 of the Treaty on the Functioning of the European Union to promote a high level of employment, guarantee adequate social protection and fight social exclusion.
Amendment 90 #
Proposal for a regulation
Article 11 – paragraph 3
Article 11 – paragraph 3
3. The Commission shall conduct, in liaison with the ECB and the ILO, regular review missions in the Member State under post programme surveillance to assess its economic, fiscal and financial situation. It shall communicate every semester its findings to the EFC or to any subcommittee the latter may designate for that purpose and assess notably whether corrective measures are needed.
Amendment 91 #
Proposal for a regulation
Article 1 – paragraph 1 a (new)
Article 1 – paragraph 1 a (new)
1a. The application of this Regulation shall fully respect Article 152 TFEU and the recommendations issued under this Regulation shall respect practices and institutions for wage formation. It shall take into account Article 28 of the Charter on Fundamental Rights of the European Union, and, accordingly, shall not affect the right to negotiate, conclude and enforce collective agreements and to take collective action in accordance with national law and practices.
Amendment 113 #
Proposal for a regulation
Article 2 – paragraph 3 a (new)
Article 2 – paragraph 3 a (new)
3a. The Commission shall consult organisations representing the economic and the social partners as well as civil society organisations regarding the recommendation.
Amendment 160 #
Proposal for a regulation
Article 5 – paragraph 1
Article 5 – paragraph 1
Where financial assistance is sought from the EFSF, the EFSM or the ESM, the Commission shall prepare – in liaison with the ECB and wherever possible and appropriate, the IMF - an analysis of the sustainability of the government debt and the actual or potential financing needs of the Member State concerned, including the Member State's ability to repay the envisaged financial assistance, and forward it to the Euro Working Group, EFC or to any subcommittee the latter may designate for that purpose. , the relevant committee of the European Parliament and the Member State Parliament. The assessment of the sustainability of the government debt shall be based on prudent macroeconomic and budgetary forecasts using the most up-to-date information and taking proper account of the outcome of the report referred to in point (a) of Article 3(3) as well as any supervisory task exercised according to point (b) of Article 3(3) and shall develop sensitivity analysis. The macroeconomic and budgetary forecasts shall assess the direct and indirect impact of various macroeconomic and financial shocks and adverse developments on the sustainability of government debt, including an estimation of the potential output and macroeconomic multiplier effects. The chosen baseline scenario shall be described with reasoning and shall be built on a balanced account of downside and upside risks. Moreover, for all sub-sectors of general government of the respective Member State relevant information on contingent liabilities with potentially large impacts on public budgets, including government guarantees, non-performing loans, and liabilities stemming from the operation of public corporations shall be published. Likewise, information on the participation of general government in the capital of private and public corporations in respect of economically significant amounts of the respective Member State shall also be published, as referred to in Article 14(3) of the Council Directive 2011/85/EU. The Commission shall make public the methodology, the economic and econometric underlying models and assumptions, as well as any other relevant parameter underpinning the assessment of the sustainability of the government debt. The Commission shall be empowered to adopt delegated acts in accordance with Article 13a specifying the format of the assessment and the elements referred above in this paragraph.
Amendment 171 #
Proposal for a regulation
Article 6 – paragraph 1 a (new)
Article 6 – paragraph 1 a (new)
1a. Member States shall include in their draft macroeconomic adjustment programmes an updated and detailed description of projected multiannual expenditure targets relating to the achievement of the objectives embedded in the EU 2020 jobs and growth strategy including social expenditure and public investments. The detailed description referred to above shall duly explain differences of projected expenditure from the most recent Stability Programmes. A social impact assessment of the consolidation measures foreseen shall be carried out by the Member State in close cooperation with the Commission and shall be annexed to the draft macroeconomic adjustment programmes. This impact assessment shall specifically address the underlying methodology (economic models and assumptions) and employment, social protection and distribution implications of each adjustment measure.
Amendment 182 #
Proposal for a regulation
Article 6 – paragraph 3
Article 6 – paragraph 3
3. The Commission, in liaison with the ECB, shall monitor the progress made in the implementation of the adjustment programme and inform every three months the EFC, the EMCO and the Euro Working Group or any subcommittee the latter may designate for that purpose, as well as the Parliament of the Member State concerned and the relevant committee of the European Parliament. The Member State concerned shall give the Commission its full cooperation. It shall in particular provide to the Commission all the information that the latter deems necessary for the monitoring of the programme. Article 3(3) shall apply.
Amendment 195 #
Proposal for a regulation
Article 6 – paragraph 5
Article 6 – paragraph 5
5. If the monitoring referred to in paragraph 3 highlights significant deviations from the macro-economic adjustment programme, the Council, acting by qualified majority on a proposal from the Commission, may decide that the Member State concerned does not comply with the policy requirements contained in the adjustment provided that the significant deviation is not mainly due to exogenous shocks or negative spill over effects out of the control of the concerned Member State. In case of non compliance the Council, acting by qualified majority on a proposal from the Commission, shall decide on any change to be made to the macroeconomic adjustment programme. The Commission proposal shall fully state the reasons of non compliance and the necessity and proportionality of the changes made to the macroeconomic adjustment programme.
Amendment 209 #
Proposal for a regulation
Article 6 a (new)
Article 6 a (new)
Article 6a Involvement of social partners and civil society Organisations representing the economic and the social partners as well as civil society organisations shall be given the possibility to express their views on Commission's public recommendations and opinions referred to in this Regulation as well as on Member States reports and draft reports foreseen in Articles 2 to 7 of this Regulation. These views and opinions shall be made publicly accessible. At the invitation of the national parliament or of the European Parliament, non-governmental parties which engage in the review and critique of macroeconomic targets and measures for fiscal consolidation may propose alternative measures for compliance with targets and submit them to the executive and the bodies vested with responsibility for monitoring and surveillance for consideration.
Amendment 210 #
Proposal for a regulation
Article 6 a (new)
Article 6 a (new)
Article 6a Involvement of the social partners and civil society Organisations representing the economic and the social partners as well as of civil society organisations shall be consulted on Commission's public recommendations and opinions referred to in this Regulation as well as on Member States reports and draft reports provided for in Articles 2 to 7 of this Regulation.