Activites

• 1996/07/08 Final act published in Official Journal
• 1996/06/18 Debate in Parliament
  • Debate in Parliament
  • T4-0331/1996 summary

    Adopting the report by Mr Fernando PEREZ ROYO (PSE), the European Parliament affirmed that completing the internal market with EMU and, more importantly, introducing a single European currency, were the only ways of dealing with the problems of currency fluctuations within the European Union in the long term. The report called on Member States to step up efforts to improve public finances by introducing a stable and coherent policy which did not jeopardize the operation of common interest services and the European social model. The common system of exchange rates governing relations between Member States which benefit from a derogation and those which do not should be based on a euro with wide fluctuation margins, without excluding the possibility of setting narrower margins for those who so wish. In addition, provision was also needed for intervention mechanisms to neutralize speculative pressures. The report opposed the adoption of protectionist measures in reaction to monetary fluctuations and considered the suggestion that regions and sectors affected by these fluctuations be compensated through the Structural Funds to be inappropriate. However, adequate aid could be given to frontier SMEs, which would be the first to be affected by a devaluation in the currency of the neighbouring country.�

• 1996/05/30 Vote in committee, 1st reading/single reading
  • A4-0181/1996
• 1996/01/19 Committee referral announced in Parliament, 1st reading/single reading
• #1887
• 1995/11/27 Council Meeting
  • 1887
• 1995/10/31 Non-legislative basic document published
  • COM(1995)0503 summary

    OBJECTIVE: to highlight the impact of currency fluctuations on economic growth and the internal market. CONTENT: the European Union has seen serious currency fluctuations since the summer of 1992. In three years, five currencies have depreciated by 20% or more in relation to the more stable currencies in the EMS. The importance of these developments justifies raising this question at the highest level. Analyzing the impact of intra-European currency fluctuations on growth and the internal market, the Commission report highlights several phenomena: - a slowdown in growth in the order of 0.25 to 0.5 percentage points in 1995 (including the dollar effect); - a variable effect on the development of the cost of competitiveness; - a secondary effect on trade balances, although appreciable on margin performances; - finally, a more visible impact at sectoral and regional level (e.g. automotive and clothing sectors, border regions close to countries whose currency has depreciated). The Commission concludes on the basis of this finding that currency fluctuations cause the EU economy certain problems, even if they have nothing to do with the elimination of trade barriers. It recommends attacking the causes of fluctuations which are directly linked to the lack of progress achieved in convergence, especially with regard to reducing public deficits. The solution to these disturbances lies in economic convergence, which is essential if a strong, stable single currency is to be introduced and, more particularly, in long-term compliance with the inflation and public deficit criteria set out in the Treaty. In this respect, the Commission will ensure that the mechanisms of the TEU are strictly applied in order to strengthen this convergence. The Commission concludes the report by stating that it considers that the single currency is an indispensable complement to the single market. Economic and monetary union is the right response to the difficulties which currency fluctuations cause for the European economy. Any other solution would risk being worse than the problems which it was seeking to resolve.�

Documents

• Non-legislative basic document published: COM(1995)0503
• Debate in Council: 1887
• Committee report tabled for plenary, single reading: A4-0181/1996
• Debate in Parliament: Debate in Parliament
• Decision by Parliament, 1st reading/single reading: T4-0331/1996

History

(these mark the time of scraping, not the official date of the change)