2022/2150(INI) | [ParlTrack]

Motion for a resolution
Recital B

B. whereas the EU labour market has proved particularly resilient, with an additional two million people in employment, leading to a record low unemployment rate of 6.2 % in 2022, yet significant geographic differences remain; whereas according to the Commission’s autumn economic forecast the public sector was a key contributor to the increase in employment; whereas despite labour market tightness wage growth has remained moderate; whereas the unemployment rate is expected to increase slightly in 2023 (6.5 %), before marginally coming down again in 2024 (6.2 %);

Amendment 100 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Gilles BOYER

Motion for a resolution
Paragraph 6

6. Highlights the key role being played by the NRRPs in driving the Member States’ reform and investment agendas; recalls the importance of reforms in bolstering recovery and future productivity growth and as enablers of investment; stresses the crucial role of investments in boosting growth and delivering the twin transition, in particular with regard to making the EU independent from imported fossil fuels;

Amendment 101 #

Motion for a resolution
Paragraph 6

6. Highlights the key role being played by the NRRPs in driving the Member States’ reform and investment agendas; ~~recall~~highlights the importance of green, digital and social reforms in bolstering Member States’ recovery ~~and~~, future productivity growth and as enablers of investment; stresses the crucial role of green, digital, social and strategic investments in boosting growth;

Amendment 102 #

Motion for a resolution
Paragraph 6

6. Highlights the key role being played by the NRRPs in driving the Member States’ reform and investment agendas; recalls the importance of reforms in bolstering the recovery ~~and~~, future productivity growth and ~~as enablers of investment; stresses the crucial role of investments in boosting growth~~competitiveness; stresses that investments will only have a long-term effect if the reform agenda is properly implemented;

Amendment 103 #

Motion for a resolution
Paragraph 6

6. Highlights the key role being played by the NRRPs in driving the Member States’ reform and investment agendas; ~~recalls the importance of reform~~stresses the crucial role of strategic and public investments in bolostering ~~recovery and future productivity growth and as enablers of investment; stresses the crucial role of investments in boosting growth~~growth; regrets the imposition of reforms to Member States, namely cuts in public spending for strategic economic and social sectors;

Amendment 104 #

Motion for a resolution
Paragraph 6

6. Highlights the key role being played by the NRRPs in driving the Member States’ reform and investment agendas; recalls the absolute importance of reforms in bolstering recovery and future productivity growth and as enablers of investment; stresses the crucial role of especially private investments in boosting growth;

Amendment 105 #

Jonás FERNÁNDEZ, Marek BELKA, Margarida MARQUES, René REPASI, Csaba MOLNÁR, Aurore LALUCQ, Marc ANGEL, Joachim SCHUSTER, Paul TANG, Eero HEINÄLUOMA, Pedro SILVA PEREIRA, Pedro MARQUES

Motion for a resolution
Paragraph 6 a (new)

6 a. Recalls that since 2017, some provisions in Member States’ bodies of national legislation were assessed to determine whether they facilitated aggressive tax planning and that, since 2019, six Member States received Country Specific Recommendations (CSRs) aiming at addressing features of the tax system that may facilitate aggressive tax planning; notes that those Member States made commitments in their NRRPs to reform their tax policies in order to fight aggressive tax planning; welcomes the fact that some jurisdictions already implemented some of those changes; however regrets the delays in implementation in others; regrets that, in the Recommendations of the Commission for 2022, only two Member States still received a CSR on aggressive tax planning while some have not implemented any change yet but still did not receive the Recommendation;

Amendment 106 #

Motion for a resolution
Paragraph 6 a (new)

6 a. Notes that many Member States are suffering from structural challenges hindering their growth potential; Highlights that tackling structural challenges is crucial for a sustainable recovery and continued growth, and that implementing reforms to address structural vulnerabilities is key not only to improving the ability to withstand and cope with existing challenges but also to accomplishing the twin transitions in a sustainable and fair manner;

Amendment 107 #

Motion for a resolution
Paragraph 6 b (new)

6 b. Highlights that reforms remain essential to strengthen the EU’s economic base, promote business creation and entrepreneurship and strengthen the Union's competitiveness, productivity and overall growth potential;

Amendment 108 #

Motion for a resolution
Paragraph 7

7. Underlines the two key features of the RRF which are intrinsically linked to its successful implementation: (a) the six-pillar structure, ensuring that Member States give adequate consideration in their reform and investment agendas to all the relevant dimensions for making EU economies and societies more prosperous, sustainable, inclusive, competitive and resilient; (b) thorough monitoring by the European Parliament, ensuring the open, transparent and democratic scrutiny of the RRF’s implementation; welcomes the extension of these features to the European Semester and other instruments used for economic coordination;deleted

Amendment 109 #

Motion for a resolution
Paragraph 7

Amendment 11 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Gilles BOYER

Motion for a resolution
Recital B

Amendment 110 #

Motion for a resolution
Paragraph 7 – introductory part

7. ~~Underlines the two key features of the RRF which are~~ Welcomes the novel approach embedded in the RRF, ensuring stronger national ownership through the implementation of NRRPs and promoting ambitious national reform and investment agendas; recalls to this end the RRF’s six- pillar structure promoting the twin tr~~insically linked to its successful implementation:~~ ansition, sustainable growth, competitiveness, social and territorial cohesion, and youth to make EU economies and societies more prosperous, sustainable, inclusive, competitive and resilient;

Amendment 111 #

Eva Maria POPTCHEVA, Caroline NAGTEGAAL

Motion for a resolution
Paragraph 7 – introductory part

7. Underlines the twohree key features of the RRF which are intrinsically linked to its successful implementation:

Amendment 112 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Gilles BOYER

Motion for a resolution
Paragraph 7 – point a

(a) the six-pillar structure, ensuring that Member States give adequate consideration in their reform and investment agendas to all the relevant dimensions for making EU economies and societies more prosperous, sustainable, inclusive, competitive and resilient;deleted

Amendment 113 #

Motion for a resolution
Paragraph 7 – point a

Amendment 114 #

Jonás FERNÁNDEZ, Marek BELKA, Alfred SANT, Margarida MARQUES, René REPASI, Csaba MOLNÁR, Aurore LALUCQ, Marc ANGEL, Joachim SCHUSTER, Costas MAVRIDES, Pedro SILVA PEREIRA, Pedro MARQUES

Motion for a resolution
Paragraph 7 – point a

(a) the six-pillar structure, ~~ensuring~~which was developed as part of the ordinary legislative procedure and hence under the full involvement of the European Parliament and that ensures that Member States give adequate consideration in their reform and investment agendas to all the relevant dimensions for making EU economies and societies more prosperous, sustainable, inclusive, competitive and resilient;

Amendment 115 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Gilles BOYER

(a) the six-pillar structure, ensuring that Member States give adequate consideration in their reform and investment agendas to all the relevant dimensions for making EU economies and societies more prosperous, environmentally sustainable, inclusive, competitive and resilient;

Amendment 116 #

Motion for a resolution
Paragraph 7 – point b

~~(b) thorough monitoring by the European Parliament, ensuring the open, transparent and democratic scrutiny of the RRF’s implementation;~~deleted

Amendment 117 #

Motion for a resolution
Paragraph 7 – point b

(b) thorough monitoring by the European Parliament, ensuring the open, transparent and democratic scrutiny of the RRF’s implementation; paying particular attention to the provisions concerning measures to protect RRF resources from fraud, corruption, conflicts of interest and double funding;

Amendment 118 #

Eva Maria POPTCHEVA, Caroline NAGTEGAAL

Motion for a resolution
Paragraph 7 – point b

(b) ~~thorough monitoring by the European Parliament, ensuring the open, transparent and democratic scrutiny of the RRF’s implementation~~clear incentives to follow through with the reform agenda;

Amendment 119 #

Motion for a resolution
Paragraph 7 – point b a (new)

(b a) fixed binding milestones and targets including structural reforms and investments for each Member State;

Amendment 12 #

Motion for a resolution
Recital B

B. whereas the EU labour market has proved particularly resilient, with an additional two million people in employment, leading to a record low unemployment rate of 6.2 % in 2022; whereas it is worrying that according to the Commission’s autumn economic forecast it was the public sector which was a key contributor to the increase in employment; whereas despite labour market tightness wage growth has remained moderate; whereas the unemployment rate is expected to increase slightly in 2023 (6.5 %), before marginally coming down again in 2024 (6.2 %);

Amendment 120 #

Motion for a resolution
Paragraph 7 – subparagraph 1

~~welcomes the extension of these features to the European Semester and other instruments used for economic coordination;~~deleted

Amendment 121 #

Motion for a resolution
Paragraph 7 – subparagraph 1

~~welcomes the extension of these features to the European Semester and other instruments used for economic coordination;~~deleted

Amendment 122 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Gilles BOYER

Motion for a resolution
Paragraph 7 – subparagraph 1

welcomes the extension of these features to the European Semester and other instruments used for economic coordination, underlining the need to adapt such features to the specific reality of the European Semester - as essentially an instrument for economic coordination - and the importance of having that in regard in a future reform of economic governance;

Amendment 123 #

Motion for a resolution
Paragraph 7 – subparagraph 1

~~welcomes~~calls for the extension of these features to the European Semester and other instruments used for economic coordination, as to ensure a higher uptake of environmental and social agendas but also stronger national ownership, particularly of Member States’ local and regional authorities;

Amendment 124 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Gilles BOYER, Eva Maria POPTCHEVA

Motion for a resolution
Paragraph 7 a (new)

7 a. Urges the Commission to carefully monitor the risks to EU financial interests in the implementation of the RRF of any potential breach of the principles of the rule of law, with particular attention to public procurement; expects the Commission not to proceed with any payments under the RRF if milestones linked to measures to prevent, detect and correct corruption, fraud and conflicts of interest are not met;

Amendment 125 #

Motion for a resolution
Paragraph 7 a (new)

7 a. Welcomes the greater involvement of the European Parliament in the monitoring and scrutiny of the RRF implementation; calls therefore for a closer involvement of the European Parliament in the European Semester;

Amendment 126 #

Motion for a resolution
Paragraph 8

8. Highlights the essential role played by the RRF in equipping the Union with the tools needed to successfully face the global challenges stemming from the green transition and the digital transformation of the economy, along with the implementation of the European Pillar of Social Rights;deleted

Amendment 127 #

Motion for a resolution
Paragraph 8

Amendment 128 #

Motion for a resolution
Paragraph 8

8. ~~Highlights the essential~~Notes the temporary role played by the RRF in ~~equipping the Union with the tools needed to successfully face the~~adressing global challenges stemming from the green transition and the digital transformation of the economy~~, along with the implementation of the European Pillar of Social Rights~~; calls on Member States to make the most of this opportunity and to use it to transform their economies and make them more competitive;

Amendment 129 #

Motion for a resolution
Paragraph 8

8. ~~Highlight~~Notes the essential role played by the RRF in equipping the Union with the tools needed to successfully face the global challenges stemming from the green transition and the digital transformation of the economy, along with the implementation of the European Pillar of Social Rights;

Amendment 13 #

Motion for a resolution
Recital B

B. whereas the EU labour market ~~has proved particularly resilient, with an additional two million people in employment, leading to a~~remains seriously disrupted, with the record low unemployment rate of 6.2 % in 2022; whereas according to the Commission’s autumn economic forecast the public sector was a key contributor to the increase in employment; whereas despite labour market tightness wage growth has remained modebeing based on the definition applied by the International Labour Office, which uses a highly controversial calculation method that does not fully reflect the real unemployment situation, as the failure to tackle poverty in the EU demonstrates; whereas ~~the unemployment rate is expected to increase slightly in 2023 (6.5 %), before marginally coming down again in 2024 (6.2 %)~~salaries in many European countries are too low, fuelling unemployment as there is a lack of business opportunities;

Amendment 130 #

Motion for a resolution
Paragraph 8 a (new)

8 a. Points out that Member States with high debt levels should use the RRF to finance additional investment to support the recovery, while pursuing a prudent fiscal policy; stresses the importance of Member States using the potential of the RFF to support the necessary structural changes and the transformation to more globally competitive, future-proof, agile industries; notes that the growth of current expenditure should be kept under control and be limited for Member States with high debt levels, allowing fiscal measures to maximise support to the recovery without pre-empting future fiscal trajectories, creating a permanent burden on public finances and having a negative effect on inflation trends;

Amendment 131 #

Jonás FERNÁNDEZ, Marek BELKA, Alfred SANT, Margarida MARQUES, René REPASI, Csaba MOLNÁR, Aurore LALUCQ, Marc ANGEL, Joachim SCHUSTER, Costas MAVRIDES, Pedro SILVA PEREIRA, Pedro MARQUES

Motion for a resolution
Paragraph 8 a (new)

8 a. Welcomes the recent conclusion of negotiations establishing the possibility for Member States to introduce REPowerEU chapters to the NRRPs and, thereby, to access loans and additional grants to support the implementation of measures that cut dependence on Russian fossil fuels and accelerate the energy transition; invites Member States to prepare and submit such REPowerEU chapters swiftly; stresses that a lasting increase of public and private investment beyond such crisis instruments is needed in order to be able to address current and future challenges and to achieve the EU policy objectives related to the digital and green transitions;

Amendment 132 #

Jonás FERNÁNDEZ, Marek BELKA, Alfred SANT, Margarida MARQUES, René REPASI, Csaba MOLNÁR, Aurore LALUCQ, Marc ANGEL, Joachim SCHUSTER, Costas MAVRIDES, Pedro SILVA PEREIRA, Pedro MARQUES

Motion for a resolution
Paragraph 8 b (new)

8 b. Believes that future reforms of the European Semester should draw on the lessons learned as part of Next Generation EU and the RRF, especially as regards more transparent and democratic processes relating to the definition of policy objectives, the conduct of policy coordination as well as in relation to the collaborative approaches to the definition of reforms and investment projects that were pioneered between the European Commission and Member States; considers that such reforms should also incorporate lessons learned from the temporary establishment of the Support to mitigate Unemployment Risks in an Emergency (SURE) instrument;

Amendment 133 #

Motion for a resolution
Paragraph 8 a (new)

8 a. Underlines the importance of public investment in the framework of the economic recovery; recalls that the RRF does not replace the specific role of national public invesment; reiterates the need to ensure quality, transparency and accountability in public investment and national strategies coherent with the objectives of the twin transition, that must be complementary to the RRF and other european investment instruments;

Amendment 134 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Gilles BOYER

Motion for a resolution
Paragraph 9

9. ~~Welcom~~Notes the publication of the Commission’s communication on orientations for a reform of the EU economic governance framework; ~~expresse~~calls con~~cern about its delay; stresses the need to adopt legislative proposals before time runs out and~~ the Member States to take responsibility and bring down their national debt to sustainable levels in order to protect the integrity of the Economic and Monetary Union, even though the gGeneral eEscape cClause ~~is removed and the current legislature comes to an en~~has not yet been deactivated;

Amendment 135 #

Motion for a resolution
Paragraph 9

9. Welcomes the publication of the Commission’s communication on orientations for a reform of the EU economic governance framework; expresses concern about its delay; stresses the need to adopt ~~legislative proposals before time runs out and~~and implement legislation before the general escape clause is removed and the current legislature comes to an end; calls for the establishment of an economic governance framework with stronger national ownership, more democratic scrutiny and enhanced transparency;

Amendment 136 #

Motion for a resolution
Paragraph 9

9. ~~Welcomes~~Takes note of the publication of the Commission’s communication on orientations for a reform of the EU economic governance framework; ~~expresses concern about its delay; stresses the need to adopt legislative proposals before time runs out and the general escape clause is removed and the current legislature comes to an en~~regrests that the proposal, despite the long public debate, does not resolve the issues identified;

Amendment 137 #

Motion for a resolution
Paragraph 9

9. Welcomes the publication of the Commission’s communication on orientations for a reform of the EU economic governance framework; ~~expresses concern about its delay; stresses the need to adopt legislative proposals before time runs out and the general escape clause is removed and the current legislature comes to an end~~looks forward to legislative proposals; underlines that the effectiveness of every framework depends on its proper enforcement;

Amendment 138 #

Motion for a resolution
Paragraph 9

Amendment 139 #

Eva Maria POPTCHEVA, Stéphanie YON-COURTIN, Caroline NAGTEGAAL

Motion for a resolution
Paragraph 9

Amendment 14 #

B. whereas the EU labour market has proved particularly resilient, with an additional two million people in employment, leading to a record low unemployment rate of 6.2 % in 2022 in the EU as a whole; whereas unemployment remains high in some Member States; whereas youth unemployment is still a matter of great concern, with 28,72 million people under 25 years of age seeking employment in October 2022, an increase of 102.000 from October 2021; whereas according to the Commission’s autumn economic forecast the public sector was a key contributor to the increase in employment; whereas despite labour market tightness wage growth has remained moderate; whereas the unemployment rate is expected to increase slightly in 2023 (6.5 %), before marginally coming down again in 2024 (6.2 %);

Amendment 140 #

Motion for a resolution
Paragraph 9 a (new)

9 a. Is concerned by the global shortages of many goods, associated in part with the disruption caused by COVID-19, as well as with Russia's criminal aggression against Ukraine; calls on the Commission to identify shortages in strategic production sites and to come up with strategies aimed at strengthening the EU's self-sufficiency in critical sectors and diversifying sources;

Amendment 141 #

Motion for a resolution
Paragraph 9 b (new)

9 b. Stresses that research and innovation are crucial to future economic policy; calls on the Commission to increase investment in research, development and innovation;

Amendment 142 #

Motion for a resolution
Paragraph 9 a (new)

9 a. Stresses that a proper and credible economic governance framework is a necessary requirement for a sustainable monetary union; highlights the importance of sustainable debt levels and credible debt reduction paths for the real economy, especially in an macroeconomic environment that faces increasing interest rates;

Amendment 143 #

Motion for a resolution
Paragraph 9 a (new)

9 a. Expresses its concerns that the EU economic governance framework as a whole is losing its original scope as over the years the European Semester has been overloaded by policies out of its original scope, leading to debates of non-economic nature;

Amendment 144 #

Motion for a resolution
Paragraph 10

10. Agrees with the Commission’s orientations in general as regard the simplification of the framework, differences in Member States’ debt reduction paths, and the use of a comprehensive debt sustainability analysis ~~and the general escape clause~~; notes, however, that numerical examples are lacking, which hamper a proper assessment of the proposals;

Amendment 145 #

Motion for a resolution
Paragraph 10

10. ~~Agrees with~~Takes note of the Commission’s orientations as regard the simplification of the framework, differences in Member States’ debt reduction paths, the use of a comprehensive debt sustainability analysis and the general escape clauses; points out, however, that some of the tools suggested by the Commission might make the process of economic governance more opaque;

Amendment 146 #

Motion for a resolution
Paragraph 10

10. Agrees with the Commission’s orientations as regard the simplification of the framework, differences in Member States’ ~~debt reduction~~fiscal paths, the use of a more comprehensive debt sustainability analysis and the general escape clauses; suggests the European Semester should mirror the medium-term nature of the future economic policy coordination framework;

Amendment 147 #

Motion for a resolution
Paragraph 10

10. Agrees with the Commission’s orientations as regard the simplification of the framework~~, differences in Member States’ debt reduction paths, the use of a comprehensive debt sustainability analysis and the general escape clauses~~;

Amendment 148 #

Motion for a resolution
Paragraph 10

10. Agrees with the Commission’s orientations as regard the simplification of the framework, differences in Member States’ debt reduction paths, the use of a comprehensive debt sustainability analysis and the general escape clauses; retains its inclination towards a simplified approach to determine debt sustainability challenges;

Amendment 149 #

Motion for a resolution
Paragraph 10

10. Agrees with the Commission’s orientations as regard the simplification of the framework, differences in Member States’ debt reduction paths, the use of a comprehensive debt sustainability analysis and the general escape clauses; continued reduction of excessive public debt and maintaining prudent fiscal policies;

Amendment 15 #

Motion for a resolution
Recital C

C. whereas according to the annual sustainable growth survey, inflation should peak at 10.7 % in 2022 and then gradually decrease to 7.0 % in 2023 and 3 % in 2024; whereas inflation excluding energy and food, however, is estimated by the December 2022 ECB projections to rise from 3.9% in 2022 to 4.2% in 2023, which is far above the ECB's medium-term target of 2%; whereas wage growth is expected to ~~only~~ partially mitigate losses in real incomes, w~~ithout~~hich at the moment seems unlikely to trigger~~ing~~ a persistent feedback loop between wages and inflation; , but may nevertheless contribute to keeping (core) inflation rates signficantly above the ECB's 2% inflation target.

Amendment 150 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Gilles BOYER

Motion for a resolution
Paragraph 10

10. Agrees with the Commission’s orientations as regard the simplification of the framework, d~~ifferences in Member States’ debt reduction paths,~~eletion of the mandatory reduction of the excessive public debt over the 60% limit in the ucourse of ~~a comprehensive debt sustainability analysis~~20 years, differences in types of public spending and the general escape clauses;

Amendment 151 #

Motion for a resolution
Paragraph 10

10. Agrees with the Commission’s orientations as regard the ~~simplification of~~need to simplify the framework, ~~differences in~~to ensure that Member States’ debt reduction paths~~, the use of a comprehensive debt sustainability analysis and the general escape claus~~ are tailored to their economic situation, and to establish escape clauses in case of unforeseen circumstances;

Amendment 152 #

Motion for a resolution
Paragraph 10

10. ~~Agrees with the Commission’s orientations as regard the simplification of the framework, differences in~~Notes that the divergences between the Eurozone economies make quantified Member States’ debt reduction paths~~, the use of a comprehensive debt sustainability analysis and the general escape clauses~~ risky;

Amendment 153 #

Motion for a resolution
Paragraph 10 a (new)

10 a. Calls on the Commission to enhance European industrial and production capacity in order to reduce dependencies; stresses the importance of developing technological sovereignty and creating European value and jobs in strategic industrial areas; underlines the importance of EU strategic autonomy and of the resilience of its supply chain;

Amendment 154 #

Motion for a resolution
Paragraph 10 a (new)

10 a. Is of the opinion that a bigger role of the Commission's debt sustainability analysis in the fiscal rules requires full transparency, predictability and stability of these assessments; the compliance and oversight should be further strengthened and clear rules are needed to secure a transparent and consistent implementation of the framework;

Amendment 155 #

Motion for a resolution
Paragraph 10 a (new)

10 a. Awaits for further clarifications from the European Commission as regards the technicalities of the tool and the way it will be assessed; points out that the automaticity of the debt sustainability analysis process in the fiscal coordination process needs further political and technical discussion;

Amendment 156 #

Motion for a resolution
Paragraph 10 a (new)

10 a. Regrets the lack of willingness to change the arbitrary fiscal limits of 3% of deficit and 60% of debt to GDP thresholds; recalls that these limits lack economic justification, have led to undifferentiated reduction of public spending in the past and have been systematically not complied with;

Amendment 157 #

Motion for a resolution
Paragraph 10 a (new)

10 a. Welcomes the choice of net primary expenditure as single operational indicator; nots that this indicator being anchored on debt sustainability could help the framework to become both more transparent and easier to manage;

Amendment 158 #

Motion for a resolution
Paragraph 11

11. Notes the aim to stimulate investment and reforms by allowing Member States to have different debt reduction paths, provided that these enhance growth, improve debt sustainability and are in line with the EU’s objectives, in particular those of the green and digital transition and social resilience; however, strongly regrets the absence of preferential treatment for future-oriented public spending, such as green investment, from debt and deficit limits; moreover, is concerned with the fact that the do no significant harm principle is not mentioned in the assessment criteria for the multiannual plans; reiterates the importance of this principle in promoting the EU objectives of long term sustainability and resilience of the EU economy and society;

Amendment 159 #

Motion for a resolution
Paragraph 11

11. Notes the aim to stimulate investment and reforms by allowing Member States to have different ~~debt reduction~~fiscal paths, provided that these enhance growth, improve debt sustainability and ~~are in line with~~deliver the EU’s objectives, in particular those of the green and digital transition and social resilience; stresses the key role that national budgets will need to play in financing the green transition, in the absence of joint funding that would reduce the cost and align incentives as witnessed in the RRF process; highlights the need for a permanent fiscal capacity or EU Sovereignty Fund to ensure all Member States have the fiscal leeway to accelerate the transition while preserving fair competition in the single market;

Amendment 16 #

Motion for a resolution
Recital C

C. whereas according to the annual sustainable growth survey, inflation should peak at 10.7 % in 2022 and then gradually decrease to 7.0 % in 2023 and 3 % in 2024; whereas wage growth, which has remained moderate, is expected to only partially mitigate losses in real incomes,; w~~ithout triggering a persistent feedback loop between wages and inflation~~hereas the International Labour Organization pointed that, on an aggregated level, real wages in the EU reduced 2,4% in the first half of 2022 and stressed the space of manoeuvre to increase nominal wages;

Amendment 160 #

Eva Maria POPTCHEVA, Stéphanie YON-COURTIN

Motion for a resolution
Paragraph 11

11. Notes the aim to stimulate investment and reforms by allowing Member States to have different debt reduction paths, provided that these enhance growth, improve debt sustainability and are in line with the EU’s objectives, in particular those of the green and digital transition and social resilience; requires that such paths maintain a level of flexibility on the basis of possible errors in established forecasts arising from potential rapid structural changes; notes the elastic nature of small transition economies which leaves them more prone to such rapid changes as compared to larger European economies;

Amendment 161 #

Motion for a resolution
Paragraph 11

Amendment 162 #

11. Notes the aim to stimulate investment and reforms by allowing Member States to have different debt reduction paths, provided that these enhance growth, improve debt sustainability, effectively lead to lower debt levels and are in line with the EU’s objectives~~, in particular those of the green and digital transition and social resilience~~; warns however that the possibility of different debt reduction plans should not come at the dispense of the predictability of the legal framework and must by no means lead to the unequal enforcement of that framework;

Amendment 163 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Gilles BOYER, Eva Maria POPTCHEVA

Motion for a resolution
Paragraph 11

11. Notes th~~e aim to stimulate investment and reforms by~~at due to different starting points the Commissions suggests to allow~~ing~~ Member States to have different debt reduction paths, provided that these enhance growth, improve debt sustainability and are in line with the EU’s objectives,; i~~n particular those of the green and digital transition and social resilienc~~s concerned that the medium- term focus suggested by the Commission might result in necessary fiscal consolidation efforts being pushed too far back in time;

Amendment 164 #

Caroline NAGTEGAAL

11. Notes the aim to stimulate investment and reforms by allowing Member States to have different debt reduction paths, provided that these enhance growth, and improve debt sustainability ~~and are in line with the EU’s objectives, in particular those of the green and digital transition and social resilience~~;

Amendment 165 #

Motion for a resolution
Paragraph 11

11. Notes the aim to stimulate investment and reforms by ~~allow~~providing Member States ~~to have different~~with adjusted debt reduction paths~~, provided that these enhance growth,~~ and further flexibility in order to enhance growth and avoid procyclicality, as these changes will improve debt sustainability and are in line with the EU’s objectives, in particular those of the green and digital transition ~~and~~, social resilience, and strategic autonomy;

Amendment 166 #

Nicola BEER

Motion for a resolution
Paragraph 11

Amendment 167 #

Jonás FERNÁNDEZ, Marek BELKA, Alfred SANT, Margarida MARQUES, René REPASI, Csaba MOLNÁR, Marc ANGEL, Joachim SCHUSTER, Costas MAVRIDES, Pedro SILVA PEREIRA, Pedro MARQUES

Motion for a resolution
Paragraph 11 a (new)

11 a. Stresses that the revised regulatory framework must ensure that Member States have sufficient leeway to deliver decisive crisis-resolution measures when they are needed; is of the opinion that implementation of such measures should not require the suspension of regulatory provisions by means of escape clauses; notes that, in the future, the activation of escape clauses should remain a measure of last resort;

Amendment 168 #

Jonás FERNÁNDEZ, Marek BELKA, Alfred SANT, Margarida MARQUES, René REPASI, Csaba MOLNÁR, Aurore LALUCQ, Marc ANGEL, Joachim SCHUSTER, Paul TANG, Eero HEINÄLUOMA, Pedro SILVA PEREIRA, Pedro MARQUES, Costas MAVRIDES

Motion for a resolution
Paragraph 11 b (new)

11 b. Highlights the need for common criteria that ensure, despite more country- specific flexibility in debt reduction, that all Member States are assessed according to the same standards, are treated equally, and that policy outcomes are predictable; notes that such common criteria should include criteria for the definition of Member States’ debt reduction paths; stresses that debt reduction should be delivered in a growth-friendly way and that underlying regulatory criteria should be defined in relation to Member States’ output and expenditure growth;

Amendment 169 #

Jonás FERNÁNDEZ, Alfred SANT, Margarida MARQUES, René REPASI, Csaba MOLNÁR, Marc ANGEL, Costas MAVRIDES, Pedro SILVA PEREIRA, Pedro MARQUES

Motion for a resolution
Paragraph 11 c (new)

11 c. Welcomes the European Commission’s intention to focus fiscal surveillance on Member States’ net expenditure, a parameter that is under the full control of national governments; notes, however, that the calibration of which types of expenditure are included and exempted from the envisaged net expenditure indicator will require careful deliberation; is of the opinion that, next to the types of expenditure specified by the European Commission in its communication of 9 November 202213b and which already provide for a degree of structural adjustment of the indicator, investments in the resolution of macroeconomic imbalances as part of the Macroeconomic Imbalances Procedure should be exempt from the net expenditure indicator; calls for the provisions relating to the accounting of investment expenditure in the calculation of Member States expenditure laid out in the European Commission communication on flexibility in the Stability and Growth Pact of 13 January 201513c to be applied also in the calculation of net expenditure in the envisaged revised framework for EU economic governance; considers this necessary to achieve consistency and to ensure that the definition of the net expenditure indicator under the envisaged revised framework is able to grant more desirable flexibility to Member States and not less; _________________ 13b In its communication of 9 November 2022, the European Commission proposes to exempt interest expenditure as well as cyclical unemployment expenditure from the calculation of the net expenditure indicator. 13c COM (2015) 12 final

Amendment 17 #

Motion for a resolution
Recital C

C. whereas according to the annual sustainable growth survey, inflation should peak at 10.7 % in 2022 and then gradually decrease to 7.0 % in 2023 and 3 % in 2024; whereas wage growth is expected to only partially mitigate losses in real incomes, without triggering a persistent feedback loop between wages and inflation; whereas inflation was initially mostly fueled by energy prices, it now has a broader base with rising core inflation numbers;

Amendment 170 #

Jonás FERNÁNDEZ, Alfred SANT, Margarida MARQUES, René REPASI, Csaba MOLNÁR, Marc ANGEL, Joachim SCHUSTER, Costas MAVRIDES, Pedro SILVA PEREIRA, Pedro MARQUES

Motion for a resolution
Paragraph 11 d (new)

11 d. Notes that the Commission's Communication puts debt sustainability analyses (DSAs) at the centre of the fiscal rules and suggests using them to determine multi-year fiscal-structural plans; expresses concerns that DSAs would not be able to project future debt developments with certainty; underlines that the usage of DSAs still requires estimating unobservable variables, thereby undermining transparency and hampering ownership and predictability, and thus leaving space for discretion; stresses that the result of a DSA may create self-fulfilling prophecies, by encouraging investors to buy/sell bonds of the respective Member States, thereby influencing outcomes; observes that since there is not one unique set of assumptions, they should be aligned with the objectives of the EU-Treaties as regards growth and convergence, and they should be agreed upon in a political process, ideally by the European Parliament and the European Council;

Amendment 171 #

Motion for a resolution
Paragraph 11 a (new)

11 a. Welcomes the deletion of reducing the excessive public debt over the 60% limit over 20 years; regrets, however, the creation of ceilings for the net primary expenditure; stresses the discretionary nature of this measure, possibly being interpreted in different ways, and that empirical evidence from the last crisis showed that countries with a larger fiscal consolidation registered an increase in public debt;

Amendment 172 #

Motion for a resolution
Paragraph 11 b (new)

11 b. Regrets the tightening of financial sanctions applied to Member-States; is concerned that this would create a dangerous precedent; reegrets the closer introduction of structural reforms by the European Commission;

Amendment 173 #

Motion for a resolution
Paragraph 11 c (new)

11 c. Stresses that the revision of the EU Economic Governance Framework maintains the poor assessment of the causes of the Sovereign Debt crisis; stresses that the increase of public debt was not the cause but rather the consequence of external imbalances among EU Member-States;

Amendment 174 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Gilles BOYER

Motion for a resolution
Paragraph 12

12. Notes that while monetary policy is conceived and designed as a single instrument, the overall fiscal policy is the result of aggregating 19 individual fiscal policies; underlines that, apart from the recommendation on the economic policy of the euro area, coordination of actions has thus far been limited and the situation and challenges of the euro area have not been easy to factor in; ~~highlights that it is still largely random~~considers ift the aggregation of national fiscal policies results in a euro area fiscal stance which is appropriate and consistent with monetary policy; regrets that the Commission’s communication does not encompass rules or instruments that allow for the management of the euro area fiscal stancerefore all the more important that Member States comply with the rules and regulations of the Stability and Growth Pact;

Amendment 175 #

Motion for a resolution
Paragraph 11 a (new)

11 a. Calls for the establishment of a new tool for reinforcing reforms and investments as proposed by the Commission, in order to promote strategic investments and reforms in areas such as infrastructures, technology or defence;

Amendment 176 #

Motion for a resolution
Paragraph 11 a (new)

11 a. Welcomes the Commission intention to strenghen the national ownership of fiscal trajectories, based on a transparent risk-based EU surveillance framework, therefore pursuing a path of more flexibility and accountability;

Amendment 177 #

Pascal CANFIN

Motion for a resolution
Paragraph 11 a (new)

11 a. Underlines that as part of the reform of the EU economic governance framework each Member State should identify the strategic investments needed to ensure our strategic autonomy and that our Green Deal objectives are met;

Amendment 178 #

Pascal CANFIN

Motion for a resolution
Paragraph 11 b (new)

11 b. Notes that the reform of the Stability and Growth Pact must go hand in hand with a reform of the European Semester and of the indicators for monitoring and coordinating our policies, particularly with regard to the climate dimension. Updating the European Semester must ensure detailed monitoring of strategic investments and reforms to ensure the achievement of the objectives laid down in the European Climate Law and particularly climate neutrality by 2050 at the latest;

Amendment 179 #

Pascal CANFIN

Motion for a resolution
Paragraph 11 c (new)

11 c. Calls therefore on the Commission, as part of an updated European semester, to assess the discrepancy between the structure of the Member States’ budgets and a Paris- aligned scenario for each of their national budgets; thus enabling to provide recommendations on Member States’ climate debt and climate-friendly investment gap associated to the Union’s 2030 objective and the objective of climate neutrality by 2050 at the latest;

Amendment 18 #

Marek BELKA

Motion for a resolution
Recital C

C. whereas according to the annual sustainable growth survey, inflation should peak at 10.7 % in 2022 and then gradually decrease to 7.0 % in 2023 and 3 % in 2024; whereas wage growth is expected to only partially mitigate losses in real incomes, without triggering a persistent feedback loop between wages and inflation; whereas the level of inflation will hugely vary amongst member states;

Amendment 180 #

Paul TANG, Jonás FERNÁNDEZ

Motion for a resolution
Paragraph 11 a (new)

11a. Recalls that austerity policies are ineffective in achieving a permanent reduction in public deficits and therefore, in the long run, in debt levels;

Amendment 181 #

Motion for a resolution
Paragraph 11 a (new)

11 a. Calls for investments financed using European Green Bonds to be excluded from the expenditure limits under the expenditure rule;

Amendment 182 #

Motion for a resolution
Paragraph 11 a (new)

11 a. Welcomes that the Commission recognises the need to reinforce the enforcement mechanisms by relying on a broader set of sanctions;

Amendment 183 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Gilles BOYER, Eva Maria POPTCHEVA

Motion for a resolution
Paragraph 11 b (new)

11 b. Welcomes the Commission's statement that independent fiscal institutions should play an important role in the economic governance process; invites the Commission to further clarify this role and elevate the mandate and role of the European Fiscal Board;

Amendment 184 #

Motion for a resolution
Paragraph 11 b (new)

11 b. Welcomes the proposal made by the European Commission for simplifying the Debt Sustainability Assessment (DSA) by removing superfluous indicators and ensuring it is based on clear, common and objective criteria; calls for the adoption of a multi-year benchmark and for the use of the nationally financed net primary expenditure as the single operational indicator;

Amendment 185 #

Motion for a resolution
Paragraph 12

12. Notes that while monetary policy is conceived and designed as a single instrument, the overall fiscal policy is the result of aggregating 19 individual fiscal policies; underlines that, apart from the recommendation on the economic policy of the euro area, coordination of actions has thus far been limited and the situation and challenges of the euro area have not been easy to factor in; highlights that it is still largely random if the aggregation of national fiscal policies results in a euro area fiscal stance which is appropriate and consistent with monetary policy; regrets that the Commission’s communication does not encompass rules or instruments that allow for the management of the euro area fiscal stanceRecalls that the fiscal policy of Member States is a foundation of national sovereignty and democracy; insists that any plan to federalise fiscal policy at EU level would be an encroachment on a crucial prerogative of nations and would weaken democracy in the EU;

Amendment 186 #

Motion for a resolution
Paragraph 12

12. Notes that while monetary policy is conceived and designed as a single instrument, the overall fiscal policy is the result of aggregating 19 individual fiscal policies; underlines that, apart from the recommendation on the economic policy of the euro area, coordination of actions has thus far been limited and the situation and challenges of the euro area have not been easy to factor in; highlights that it is still largely random if the aggregation of national fiscal policies results in a euro area fiscal stance which is appropriate and consistent with monetary policy; regrets that the Commission’s communication does not encompass rules or instruments that allow for the management of the euro area fiscal stance; Recalls that the Commission, in the context of the European Semester and the assessment of the National Recovery and Resilience Plans, found that sore reforms are needed to address aggressive tax planning in some Member States; encourages the Commission to address aggressive tax planning in its recommendations to the Member States;

Amendment 187 #

Motion for a resolution
Paragraph 12

12. Notes that while monetary policy is conceived and designed as a single instrument, the overall fiscal policy is the result of aggregating 19 individual fiscal policies; underlines that, apart from the recommendation on the economic policy of the euro area, coordination of actions has thus far been limited and the situation and challenges of the euro area have not been easy to factor in; highlights that it is still largely random if the aggregation of national fiscal policies results in a euro area fiscal stance which is appropriate and consistent with monetary policy; regrets that the Commission’s communication does not encompass rules or instruments that allow for the management of the euro area fiscal stance, in particular where macroeconomic imbalances could usefully be addressed by adjustments to the fiscal stance, a possible synergy that should be facilitated by the medium term fiscal structural plans;

Amendment 188 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Motion for a resolution
Paragraph 12

12. Notes that while monetary policy is conceived and designed as a single instrument, the overall fiscal policy is the result of aggregating 19 individual fiscal policies; underlines that, apart from the recommendation on the economic policy of the euro area, coordination of actions has thus far been limited and the situation and challenges of the euro area have not been easy to factor in; highlights that it is still largely random if the aggregation of national fiscal policies results in a euro area fiscal stance which is appropriate and consistent with monetary policy; ~~regret~~notes that the Commission’s communication does not encompass rules or instruments that allow for the management of the euro area fiscal stance; stresses furthermore that solid public finances enable national automatic stabilisers to help Member States in reaching the appropriate fiscal stance;

Amendment 189 #

Motion for a resolution
Paragraph 12

12. Notes that while monetary policy is conceived and designed as a single instrument, the overall fiscal policy is the result of aggregating 19 individual fiscal policies; underlines that, apart from the recommendation on the economic policy of the euro area, coordination of actions has thus far been limited and the situation and challenges of the euro area have not been easy to factor in; highlights that it is still largely random if the aggregation of national fiscal policies results in a euro area fiscal stance which is appropriate and consistent with monetary policy; regrets that the Commission’s communication does not encompass rules or instruments that allow for the management of the euro area fiscal stance; highlights the benefits that the inclusion of the Eurogroup in the Treaties would bring to ensure greater coordination in the euro area;

Amendment 19 #

Jonás FERNÁNDEZ, Marek BELKA, Alfred SANT, Margarida MARQUES, René REPASI, Csaba MOLNÁR, Aurore LALUCQ, Marc ANGEL, Joachim SCHUSTER, Paul TANG, Eero HEINÄLUOMA, Costas MAVRIDES, Pedro SILVA PEREIRA, Pedro MARQUES

Motion for a resolution
Recital C a (new)

C a. whereas inflation has a differentiated impact across income groups, with low-income groups suffering proportionally more especially as inflation is mainly driven by price developments in essential goods that cannot be substituted and make up a relatively larger share of the consumption basket of low-income households; whereas such differentiated impacts cause a veritable cost-of-living crisis for parts of the population that poses challenges to social cohesion;

Amendment 190 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Gilles BOYER, Eva Maria POPTCHEVA

Motion for a resolution
Paragraph 12

12. Notes that while monetary policy is conceived and designed as a single instrument, the overall fiscal policy is the result of aggregating 19 individual fiscal policies; ~~underlin~~notes that, apart from the recommendation on the economic policy of the euro area, coordination of actions has thus far been limited and the situation and challenges of the euro area have not been easy to factor in; ~~highlight~~observes that it is still largely random if the aggregation of national fiscal policies results in a euro area fiscal stance which is appropriate and consistent with monetary policy; ~~regrets that the Commission’s communication does not encompass rules or instruments that allow for the management of the euro area fiscal stance;~~

Amendment 191 #

Motion for a resolution
Paragraph 12

12. Notes that while monetary policy is conceived and designed as a single instrument, the overall fiscal policy is the result of aggregating 19 individual national fiscal policies; underlines that, apart from the recommendation on the economic policy of the euro area, coordination of actions has thus far been limited and the situation and challenges of the euro area have not been easy to factor in; highlights that it is still largely random if the aggregation of national fiscal policies results in a euro area fiscal stance which is appropriate and consistent with monetary policy; regrets that the Commission’s communication does not encompass rules or instruments that allow for the management of the euro area fiscal stance; believes that better crisis preparedness comes with a stronger budgetary framework;

Amendment 192 #

Motion for a resolution
Paragraph 12

12. Notes that while monetary policy is conceived and designed as a single instrument, the overall fiscal policy is the result of aggregating 19 individual fiscal policies; underlines that, apart from the recommendation on the economic policy of the euro area, coordination of actions has thus far been limited and the situation and challenges of the euro area have not been easy to factor in; highlights that it is still largely random if the aggregation of national fiscal policies results in a euro area fiscal stance which is appropriate ~~and consistent with monetary policy; regrets that the Commission’s communication does not encompass rules~~ ; calls on the European Commission to do more to encourage better fiscal coor din~~struments that allow for the management of~~ation; notes that the eEuro ~~area fiscal stance~~pean Fiscal Board could help in supporting this process;

Amendment 193 #

Jonás FERNÁNDEZ, Marek BELKA, Alfred SANT, Margarida MARQUES, René REPASI, Csaba MOLNÁR, Aurore LALUCQ, Marc ANGEL, Costas MAVRIDES, Pedro SILVA PEREIRA, Pedro MARQUES

Motion for a resolution
Paragraph 12 a (new)

12 a. Notes that the Commission's communication acknowledges the potential inconsistencies between the application of the fiscal rules and the recommendations under the Macroeconomic Imbalance Procedure (MIP), and provides for the inclusion of reforms and investments required to correct the imbalances under the MIP in the national plans; regrets that the Communication does not encompass any instrument that allows for the correction of such inconsistencies;

Amendment 194 #

Motion for a resolution
Paragraph 12 a (new)

12 a. Highlights the need for better focusing the country specific recommendations, remaining within the remit of EU competences and avoiding double standards. Emphasises the importance of pursuing genuine dialogue between the Commission and the Member States during the entire semester process. This is a pre-condition of ownership and better implementation;

Amendment 195 #

Motion for a resolution
Paragraph 12 a (new)

12 a. Notes that the variety of tax rates on capital gains has led to a fragmentation on the Single Market and created opportunity for aggressive tax planning strategies; calls on the Commission to assess the feasibility of a minimum capital gain tax at EU level;

Amendment 196 #

Motion for a resolution
Paragraph 13

13. ~~Welcom~~Notes that lessons have been learned from the RRF process by promoting more ownership of ways of putting Member States in charge of designing their own national plans combining fiscal, reform and investment commitments within a common EU framework; greatly regrets that, unlike the RRF, the European Parliament is excluded from defining the overarching goals, guidance, criteria for the debt reduction path, investmthe RRF process has been used to impose reforms unwanted by citizents, reforms and the underlying assumptions on which the comprehensive debt sustainability analysis is based; regrets that neither the involvement of national parliaments nor that of national stakeholders and civil society is mentioned under project design, implementation or subsequent scrutiny, which sets back ownership and democratic accountabilitywhich sets back democracy in Europe;

Amendment 197 #

Motion for a resolution
Paragraph 13

13. ~~Welcom~~Notes that lessons have been learned from the RRF process by promoting more ownership of ways of putting Member States in charge of designing their own national plans combining fiscal, reform and investment commitments within a common EU framework; greatly regrets that, unlike the RRF, the European Parliament is excluded from defining the overarching goals, guidance, criteria for the debt reduction path, investments, reforms and the underlying assumptions on which the comprehensive debt sustainability analysis is based; regrets that neither the involvement of national parliaments nor that of national stakeholders and civil society is mentioned under project design, implementation or subsequent scrutiny, which sets back ownership and democratic accountability; notes, however, that a one-off recovery instrument has different objectives than the regular economic governance framework and that procedures cannot simply copied and pasted from the RRF process to the economic governance framework;

Amendment 198 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Gilles BOYER, Eva Maria POPTCHEVA

Motion for a resolution
Paragraph 13

13. Welcomes that lessons have been learned from the RRF process by promoting more ownership of ways of putting Member States in charge of designing their own national plans combining fiscal, reform and investment commitments within a common EU framework; greatly regrets that, unlike the RRF, the European Parliament is excluded from defining the overarching goals, guidance, criteria for the debt reduction path, investments, reforms and the underlying assumptions on which the comprehensive debt sustainability analysis is based; regrets that neither the involvement of national parliaments nor that of national stakeholders and civil society is mentioned under project design, implementation or subsequent scrutiny, which sets back ownership and democratic accountability;

Amendment 199 #

Motion for a resolution
Paragraph 13

13. Welcomes that lessons have been learned from the RRF process by promoting more national ownership of ways of putting Member States in charge of designing their own national plans combining fiscal, reform and investment commitments within a common EU framework; greatly regrets that, unlike the RRF, the European Parliament is excluded from defining the overarching goin the design of Member States' national plans, and by focusing on implementing the Union’s environmentals, ~~guidance, criteria for the debt reduction path, investments, reforms and the underly~~digital and social objectives withing a~~ssumptions on which the comprehensive debt sustainability analysis is based~~ common EU framework; regrets that ~~neither~~ the involvement of national parliaments ~~nor that of~~, regional and local authorities, as well as national stakeholders and civil society is not mentioned under project design, implementation or subsequent scrutiny, which sets back ownership and democratic accountability;

Amendment 2 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Motion for a resolution
Citation 5

~~— having regard to the Paris Agreement of the United Nations Framework Convention on Climate Change and the Sustainable Development Goals,~~deleted

Amendment 20 #

Motion for a resolution
Recital C a (new)

Ca. whereas, according to European Commission data, the GDP of some Member States will not reach pre- pandemic levels until 2024, while that of the euro area as a whole is already two percentage points higher;

Amendment 200 #

Motion for a resolution
Paragraph 13

Amendment 201 #

Motion for a resolution
Paragraph 13

Amendment 202 #

Motion for a resolution
Paragraph 13

13. Welcomes that lessons have been learned from the RRF process by promoting more ownership of ways of putting Member States in charge of designing their own national plans combining fiscal, reform and investment commitments within a common EU framework; greatly regrets that, unlike the RRF, the European Parliament is excluded from defining the overarching goals, guidance, criteria for the debt reduction path, investments, reforms and the underlying assumptions on which the comprehensive debt sustainability analysis is based; regrets that ~~neither~~ the involvement of national parliaments ~~nor that of national stakeholders and civil society is~~is not mentioned under project design, implementation or subsequent scrutiny, which sets back ownership and democratic accountability;

Amendment 203 #

Motion for a resolution
Paragraph 13 a (new)

13 a. Underlines the importance of fair taxation both from an economic and democratic perspective. Recalls the significant work carried out by the OECD, which resulted in a historic agreement on fair taxation of large multinational groups. Welcomes the unanimous agreement announced by the EU Council on the Commission's proposal for a Directive ensuring a minimum effective tax rate for large multinational groups. Encourages member states to implement this agreement at the earliest opportunity;

Amendment 204 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Gilles BOYER, Eva Maria POPTCHEVA

Motion for a resolution
Paragraph 13 b (new)

13 b. Regrets that the disparity in the taxation of capital gains across the EU may lead to a transfer of wealth and tax avoidance behavior between Member States; welcomes the decision from the Commission to establish a solidarity contribution on excess profits; supports recommendations to introduce a minimum capital gains tax at European level;

Amendment 205 #

Motion for a resolution
Paragraph 13 a (new)

13 a. Recalls the importance for the economic governance framework to be subject to democratic accountability; welcomes in that regard the Economic Dialogue as an important step to providing the European Parliament with tools to ensure democratic oversight and accountability; calls for further strengthening the role of the European Parliament in the economic governance framework;

Amendment 206 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Gilles BOYER, Eva Maria POPTCHEVA

Motion for a resolution
Paragraph 13 b (new)

13 b. Welcomes the decision to enhance the effectiveness and the enforcement of the Macroeconomic Imbalances Procedure (MIP) as part of a larger review of the fiscal rules; calls for making the Alert Mechanism Report (AMR) and the in depth reviews (IDRs) more forward-looking and for increasing the links of the procedure with the fiscal framework;

Amendment 207 #

Jonás FERNÁNDEZ, Marek BELKA, Alfred SANT, Margarida MARQUES, René REPASI, Csaba MOLNÁR, Aurore LALUCQ, Marc ANGEL, Joachim SCHUSTER, Costas MAVRIDES, Pedro MARQUES

Motion for a resolution
Paragraph 13 a (new)

13 a. Stresses that large parts of the success of the RRF are due to the mobilisation of financial support for reforms and investments undertaken by Member States; notes that the European Commission’s proposals for a revised EU economic governance framework seek to incentivise compliance by way of sanctions that apply automatically in the case of non-compliance;

Amendment 208 #

Jonás FERNÁNDEZ, Marek BELKA, Alfred SANT, Margarida MARQUES, René REPASI, Csaba MOLNÁR, Aurore LALUCQ, Marc ANGEL, Joachim SCHUSTER, Costas MAVRIDES, Pedro SILVA PEREIRA, Pedro MARQUES

Motion for a resolution
Paragraph 13 b (new)

13 b. Recalls that the RRF is expected to end in late 2026; recalls that there is a near-undisputed consensus on the need for a degree of fiscal centralisation for currency unions, such as the Economic and Monetary Union, to be viable in the long-run, which was most recently reiterated by the International Monetary Fund13d; _________________ 13d International Monetary Fund, DP/2022/014, Reforming the EU Fiscal Framework - Strengthening the Fiscal Rules and Institutions

Amendment 209 #

Jonás FERNÁNDEZ, Marek BELKA, Alfred SANT, Margarida MARQUES, René REPASI, Csaba MOLNÁR, Aurore LALUCQ, Marc ANGEL, Joachim SCHUSTER, Paul TANG, Costas MAVRIDES, Pedro SILVA PEREIRA, Pedro MARQUES

Motion for a resolution
Paragraph 13 c (new)

13 c. Considers that a permanent fiscal capacity at EU level could, if designed appropriately, play a crucial role in maintaining sufficiently high levels of strategic investment, resolving the inconsistencies between the application of the fiscal rules and the MIP, and ensuring an appropriate fiscal stance at the aggregate level; calls for the timely establishment of a permanent instrument of a significant volume to succeed the RRF prior to its expiration at the end of 2026; considers that such an instrument should comprise both an investment and a stabilisation function;

Amendment 21 #

Joachim SCHUSTER, Jonás FERNÁNDEZ, René REPASI, Paul TANG

Motion for a resolution
Recital D

D. whereas according to the Commission’s autumn forecast, the debt- to-GDP ratio is expected to fall to 86 % in the EU at the end of 2022 (94 % in the euro area) from the historically high level of 91.5 % recorded in 2020 (99 % in the euro area); whereas the debt-to-GDP ratio is expected to decline marginally in the EU to around 85 % in 2023 and 84 % in 2024 (92 % and 91 % in the euro area); whereas these unprecedented levels of public debt may represent a drag on the recovery, pose greater risk of a fiscal crisis and lead to large tax hikes;

Amendment 210 #

Motion for a resolution
Paragraph 13 a (new)

13 a. Urges the Commission to complement its proposal for a sanctions- based compliance toolbox in a revised EU economic governance framework by an incentive-based approach in order to make it more attractive for Member States to invest in European priorities and support national reform projects; highlights, to this end, to draw conclusions from the RRF;

Amendment 211 #

Motion for a resolution
Paragraph 13 a (new)

13 a. Emphasises the need to strengthen national ownership of the process and in this regard to maintain the utmost level of transparency as well as fair and equal treatment towards all Member States;

Amendment 212 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Motion for a resolution
Paragraph 13 b (new)

13 b. Takes into consideration the systemic weakening of healthcare systems in many Member States of the EU also due to a reduction of public spending in the sector; proposes a separate treatment for health related expenses until a suitable upgrade of the European public health sector is achieved;

Amendment 213 #

Caroline NAGTEGAAL

13 a. Suggests automatic sanctions against Member States that persistently violate the Stability and Growth Pact;

Amendment 214 #

Motion for a resolution
Paragraph 13 d (new)

13 d. Considers that such an instrument should support national reform and investment initiatives towards common EU priorities, especially in the context of the social-ecological transformation and with regard to MIP-related measures for which Member States lack the fiscal space at national level under the applicable fiscal framework;

Amendment 215 #

Jonás FERNÁNDEZ, Marek BELKA, Alfred SANT, Margarida MARQUES, René REPASI, Csaba MOLNÁR, Aurore LALUCQ, Marc ANGEL, Joachim SCHUSTER, Costas MAVRIDES, Pedro SILVA PEREIRA, Pedro MARQUES

Motion for a resolution
Paragraph 13 e (new)

13 e. Considers that such an instrument should provide macroeconomic stabilisation through support for counter- cyclical fiscal policies, notably by making support available on a permanent basis for actions of the type included under SURE; highlights that such a stabilisation function is vital also to ensure the appropriateness of the fiscal stance at aggregate level;

Amendment 216 #

Jonás FERNÁNDEZ, Marek BELKA, Alfred SANT, Margarida MARQUES, René REPASI, Csaba MOLNÁR, Aurore LALUCQ, Marc ANGEL, Joachim SCHUSTER, Costas MAVRIDES, Pedro SILVA PEREIRA, Pedro MARQUES

Motion for a resolution
Paragraph 14

14. Recalls that the better law-making agreement reiterates that the European Parliament and the Council are to exercise their powers as co-legislators on an equal footing and that the Commission therefore needs to treat them equally; stresses that the European Parliament should therefore be fully involved in the reform of the economic governance framework as well as the future conduct of economic governance in the EU, including in the establishment and management of fiscal instruments; stresses the role and responsibility of national parliaments;

Amendment 217 #

Motion for a resolution
Paragraph 14

14. Recalls that the better law-making agreement reiterates that the European Parliament and the Council are to exercise their powers as co-legislators on an equal footing and that the Commission therefore needs to treat them equally; calls for greater involvement of the European Parliament in the European Semester to ensure fair and equal cooperation between co-legislators; stresses the role and responsibility of national parliaments;

Amendment 218 #

Motion for a resolution
Paragraph 14

14. Recalls that the better law-making agreement reiterates that the European Parliament and the Council are to exercise their powers as co-legislators on an equal footing and that the Commission therefore needs to treat them equally; stresses the role and responsibility of national parliaments; recalls the need to move from unanimity to qualified majority voting in the Council on taxation matters;

Amendment 219 #

Motion for a resolution
Paragraph 14

14. Recalls that the better law-making agreement reiterates that the European Parliament and the Council are to exercise their powers as co-legislators on an equal footing and that the Commission therefore needs to treat them equally; stresses the role and responsibility of national parliaments in scrutinising the collective actions of national government, in spite of the Council’s fragmented accountability;

Amendment 22 #

Motion for a resolution
Recital D

D. whereas according to the Commission’s autumn forecast, the debt- to-GDP ratio is expected to fall to 86 % in the EU at the end of 2022 (94 % in the euro area) from the historically high level of 91.5 % recorded in 2020 (99 % in the euro area); whereas the debt-to-GDP ratio is expected to decline marginally in the EU to around 85 % in 2023 and 84 % in 2024 (92 % and 91 % in the euro area); whereas there is no academic consensus on the causality between low debt levels and economic growth;

Amendment 220 #

Motion for a resolution
Paragraph 14

14. Recalls that the better law-making agreement reiterates that the European Parliament and the Council are to exercise their powers as co-legislators on an equal footing and that the Commission therefore needs to treat them equally, in full respect of the competences defined by the treaties; stresses the role and responsibility of national parliaments;

Amendment 221 #

Jonás FERNÁNDEZ, Marek BELKA, Alfred SANT, Margarida MARQUES, René REPASI, Csaba MOLNÁR, Marc ANGEL, Joachim SCHUSTER, Paul TANG, Costas MAVRIDES, Pedro SILVA PEREIRA, Pedro MARQUES

Motion for a resolution
Paragraph 14 a (new)

14 a. Recognises the need for sufficient public revenue to ensure the sustainability of public finances in times of pressing investment needs and frequent economic shocks; highlights the various observations made by the European Commission as part of the European Semester on the tax mix; considers as necessary a shift from labour and consumption taxation towards the taxation of environmentally harmful practices, speculative behaviours, the windfall and/or excess profits of multinational corporations, and capital; stresses that further action to counter tax avoidance and evasion in the EU and in global fora is a necessary complement to the reform of the EU economic governance framework;

Amendment 222 #

Motion for a resolution
Paragraph 14 a (new)

14 a. Asks for the necessary respect for the principles of subsidiarity and proportionality; stresses that in line with the Treaties, Member States must continue to have sufficient flexibility in implementing an appropriate social policy and remain sovereign over their tax policy;

Amendment 23 #

Motion for a resolution
Recital D

D. whereas according to the Commission’s autumn forecast, the debt- to-GDP ratio is expected to fall to 86 % in the EU at the end of 2022 (94 % in the euro area) from the historically high level of 91.5 % recorded in 2020 (99 % in the euro area); whereas the debt-to-GDP ratio is expected to decline marginally in the EU to around 85 % in 2023 and 84 % in 2024 (92 % and 91 % in the euro area); whereas this is significantly above the reference value of 60%;

Amendment 24 #

Motion for a resolution
Recital D a (new)

D a. whereas, despite this average level of public debt and ratio to GDP, the national realities are significantly different from Member State to Member State; whereas some Member States have high levels of public debt and are, therefore, more exposed to the volatility of rates on times of economic uncertainty; whereas the principle of intergenerational solidarity demands a responsible, balanced and future-driven approach to public debt, based on accountability and flexibility;

Amendment 25 #

Joachim SCHUSTER, Jonás FERNÁNDEZ, René REPASI, Evelyn REGNER, Paul TANG

Motion for a resolution
Recital D a (new)

D a. whereas the climate-neutral and digital transformation can only succeed on European level and it is from utmost importance for the future viability of the EU to stabilize growth-enhancing public investments at a higher level in the long term; whereas it is therefore necessary to provide a timely answer on how to ensure a higher level of public investment even after to the expiry of the RRF after 2026;

Amendment 26 #

Jonás FERNÁNDEZ, Marek BELKA, Alfred SANT, Margarida MARQUES, René REPASI, Csaba MOLNÁR, Aurore LALUCQ, Marc ANGEL, Joachim SCHUSTER, Eero HEINÄLUOMA, Costas MAVRIDES, Pedro SILVA PEREIRA, Pedro MARQUES

Motion for a resolution
Recital D a (new)

D a. whereas inflation and economic forecasts are operating under the conditions of heightened uncertainty, with key risks, especially to growth, continuing to be pitched to the downside; whereas such uncertainty compels the EU and Member State governments to remain vigilant and to take rapid action if risks materialise;

Amendment 27 #

Motion for a resolution
Recital D a (new)

D a. wheras Member States deficit is forecasted to come in at 3.4% in the EU and 3.5% in the Euro area in 2022; whereas the defict is expected to increase to 3.6% in the EU and 3.7% in the Euro area; whereas this is significantly above the reference value of 3%;

Amendment 28 #

Motion for a resolution
Recital D b (new)

D b. whereas the European Semester plays an essential role in coordinating economic and budgetary policies in the Member States thereby safeguarding the macroeconomic stability of the Economic and Monetary Union;

Amendment 29 #

Motion for a resolution
Recital D c (new)

D c. whereas high debt-to-GDP levels in certain Member States combined with rising refinancing costs raise significant doubts in relation to their long-term debt sustainability;

Amendment 3 #

Motion for a resolution
Citation 18

~~— having regard to the Commission communication of 4 March 2021 entitled ‘The European Pillar of Social Rights Action Plan’ (COM(2021)0102),~~deleted

Amendment 30 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Gilles BOYER, Eva Maria POPTCHEVA

Motion for a resolution
Recital D d (new)

D d. whereas the Commission's assessment of the euro area Member States’ draft budgetary plans indicates that the growth of nationally financed current expenditure in some Member States is projected to be high, leading to an expansionary fiscal stance in some Member States1a; whereas this runs contrary to the Commission recommendation of a neutral fiscal stance for 2023; _________________ 1a Annual Sustainable Growth Survey 2023, part. 2.4, p. 15

Amendment 31 #

Motion for a resolution
Recital D a (new)

D a. whereas according to the Commission’s autumn forecast, government deficit is expected to increase up to 3.6 % of GDP in 2023 (3.7 % in the euro area) and to decrease to 3.2 % of GDP (3.3 % in the euro area) by 2024;

Amendment 32 #

Motion for a resolution
Recital D a (new)

D a. whereas meeting the goals of the European Green Deal and Paris Agreement requires significant and targeted fiscal efforts;

Amendment 33 #

Motion for a resolution
Recital D b (new)

D b. whereas the differences regarding the national forecasts for GDP growth, inflation, unemployment, general government balance, gross public debt and current account balance demonstrate the need for flexible approaches, based on the specific reality of each Member State; whereas the country specific reccomendations are the most important instrument to guarantee such approach; whereas Member States must be committed to comply with such recommendations;

Amendment 34 #

Motion for a resolution
Recital D a (new)

D a. whereas fiscal consolidation with the clear intention of lowering the deficit and public debt must remain a priority of the Member States;

Amendment 35 #

Motion for a resolution
Recital D b (new)

D b. whereas full and unambiguous enforcement of the fiscal rules by the Commission is necessary for their succesful implementation by the Member States;

Amendment 36 #

Motion for a resolution
Recital D c (new)

D c. whereas the EU's low productivity and global competitiveness require urgent structural, growth enhancing reforms, well targeted investments in future proof infrastructure and the return to fiscal discipline;

Amendment 37 #

Motion for a resolution
Recital D c (new)

D c. whereas the high levels of inflation recorded in 2022 and the economic forecasts for 2023 justify a structured debate on the reform of economic governance;

Amendment 38 #

Motion for a resolution
Paragraph 1

1. Is concerned that the EU is one of the most exposed advanced economies to downward risks, given its geographical proximity to Ukraine and heavy reliance on gas imports from Russia; notes that the impact of high energy prices and inflation leads to the erosion of household purchasing power; highlights that a reduction in aggregate demand, combined with less favourable financing conditions, could lead to a sharp decline in investment and therefore in economic growth; worries that investments in renewables and energy efficiency could also suffer, though these are precisely the investments required to reduce reliance on imported fossil fuels and limit inflation driven by energy prices;

Amendment 39 #

Motion for a resolution
Paragraph 1

1. Is concerned that the EU is one of the most exposed advanced economies to downward risks, given its geographical proximity to Ukraine and heavy reliance on gas imports from Russia; notes that the impact of high ~~energy prices and inflation~~inflation, and in particular high energy prices, leads to the erosion of household purchasing power; highlights that a reduction in ~~aggregate demand, combined with less favourable financing conditions, could lead to a sharp decline in investment and therefore in~~the inflation rate towards target level, while potentially painful in the short run, will create the preconditions for long-term sustainable economic growth;

Amendment 4 #

Motion for a resolution
Citation 19

~~— having regard to the Porto Social Commitment of 7 May 2021 of the Council, the Commission, Parliament and social partners,~~deleted

Amendment 40 #

Motion for a resolution
Paragraph 1

1. Is concerned that the EU is one of the most exposed advanced economies to downward risks, given its geographical proximity to Ukraine and heavy reliance on gas imports from Russia; ~~notes tha~~expresses its strong concerns about the impact of high energy prices and inflation leads to the erosion of household purchasing power; highlights that a reduction in aggregate demand, combined with less favourable financing conditions, could lead to a sharp decline in investment and therefore in economic growthon households and SME’s in particular;

Amendment 41 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Motion for a resolution
Paragraph 1

1. Is concerned that the EU is one of the most exposed advanced economies to downward risks, given its geographical proximity to Ukraine and heavy reliance on gas imports from Russia; ~~not~~stresses that the impact of high energy prices ~~and inflation~~, inflation and a restrictive monetary policy leads to the erosion of household purchasing power; highlights that a reduction in aggregate demand, combined with less favourable financing conditions, could lead to a sharp decline in investment and therefore in economic growth;

Amendment 42 #

Motion for a resolution
Paragraph 1

1. Is concerned that the EU is one of the most exposed advanced economies to downward risks, given its geographical proximity to Ukraine and heavy reliance on gas imports from Russia; acknowledges the initiatives of the Commission and the Council to tackle this problem and its effects; notes that the impact of high energy prices and inflation leads to the erosion of household purchasing power; highlights that a reduction in aggregate demand, combined with less favourable financing conditions, could lead to a sharp decline in investment and therefore in economic growth;

Amendment 43 #

Motion for a resolution
Paragraph 1

1. Is concerned that the EU is one of the most exposed advanced economies to downward risks, given its geographical proximity to Ukraine and heavy reliance on ~~gas~~energy imports, especially on gas from Russia; notes that the impact of high energy prices and inflation leads to the erosion of household purchasing power and industry competitiveness; highlights that a reduction in aggregate demand, combined with less favourable financing conditions, could lead to a sharp decline in investment and therefore in economic growth;

Amendment 44 #

Motion for a resolution
Paragraph 1

1. Is concerned that the EU is one of the most exposed advanced economies to downward risks, given its ~~geographical proximity to Ukra~~long-standineg and h~~eavy~~armful reliance on ~~gas import~~energy commodities from Russia; notes that the impact of high energy prices and inflation leads to the erosion of household purchasing power; highlights that a reduction in aggregate demand, combined with less favourable financing conditions, could lead to a sharp decline in investment and therefore in economic growth;

Amendment 45 #

Motion for a resolution
Paragraph 1 a (new)

1 a. Understands that government debt-to-GDP levels have risen in recent years partially due to exceptional circumstances; welcomes the Commission's focus on debt sustainability; underlines that government debt-to-GDP ratio's in many Member States are historically high, which in combination with the rising interest rates lead to a steep increase of debt servicing costs and which burdens the next generation with the costs of repayment; reiterates that sound fiscal policies and sustainable debt levels are essential in the longer run to create the required fiscal space to address future challenges;

Amendment 46 #

Motion for a resolution
Paragraph 1 a (new)

1 a. Notes that the European Systemic Risk Board has issued a warning on 22 September 2022 calling for heightened awareness with regards to financial stability risks resulting from sharply falling asset prices; is concerned that rising mortgage rates and the deterioration in debt servicing capacity due to a decline in real household income may cause further distress for families and for financial markets;

Amendment 47 #

Motion for a resolution
Paragraph 1 a (new)

1a. Notes that the price formation mechanisms brought into play by the European energy market have exacerbated the crisis and jeopardised many Member States’ economic fabric;

Amendment 48 #

Motion for a resolution
Paragraph 1 a (new)

1 a. Notes that some Member States have suffered from structurally low growth levels even before the pandemic and the recent energy crisis;

Amendment 49 #

Motion for a resolution
Paragraph 1 b (new)

1 b. Agrees with the Commission's observation that deteriorating economic conditions have increased vulnerabilities and risks associated with pre-existing imbalances, and new imbalances may emerge1a; _________________ 1a Annual Sustainable Growth Survey 2023, part 2.4

Amendment 5 #

Motion for a resolution
Citation 28

~~— having regard to the proposal for a joint employment report from the Commission and the Council of 22 November 2022 (COM(2022)0783),~~deleted

Amendment 50 #

Motion for a resolution
Paragraph 1 a (new)

1 a. Recognises that the EU finds itself in a critical juncture with both external and internal negative pressures forcing the European economy into a continuous adaptation mode;

Amendment 51 #

Motion for a resolution
Paragraph 1 b (new)

1 b. Welcomes the positive projections in the Commission’s Annual Sustainable Growth Survey 2023 as regards inflation and real GDP growth from the year 2024 onwards; stresses that it remains essential for EU economic policy to have in place the needed tools for an adverse scenario in order to cushion European enterprises and households from further difficulties;

Amendment 52 #

Motion for a resolution
Paragraph 1 c (new)

1 c. Is concerned that both the COVID crisis and to a larger extent, the ongoing inflation plus energy shake-up are exposing the fragility of the social safety net, which was side-lined for years due to other priorities during a long period of practically zero inflation; points out that already by the end of 2021, 95.4 million EU citizens, equivalent to 21.7 % of the EU population were at risk of poverty or social exclusion with one fifth of the EU population living in households where dependent children were at risk of poverty or social exclusion;

Amendment 53 #

Motion for a resolution
Paragraph 1 d (new)

1 d. Stresses the urgent need to have more EU investment directly funnelled towards programmed social projects in the Member States and that EU actors must push towards EU and national budgetary policies that embrace such approach;

Amendment 54 #

Motion for a resolution
Paragraph 2

2. Stresses that ~~while~~ the primary objective of the European Central Bank (ECB) is to maintain price stability, the primary objective of the Union as a whole should be to minimise the impact of current turbulences on the real economy, thereby defending the wellbeing of its citizens and preserving its production structure and the international competitiveness of its companies; underlines, in this regard, the importance of adequate and coordinated fiscal, structural and regulatory policies that complement the ECB’s monetary policy actions, which are also capable of supporting household incomes and providing targeted support to companies suffering from supply bottleneck; calls on the ECB to do whatever it takes to bring inflation down to its target level of 2% and fulfil its mand ~~high energy costs~~ate;

Amendment 55 #

Motion for a resolution
Paragraph 2

2. Stresses that while the primary objective of the European Central Bank (ECB) is to maintain price stability, the primary objective of the Union as a whole should be to minimise the impact of current turbulences on the real economy, thereby defending the wellbeing of its citizens and preserving its production structure and the international competitiveness of its companies; underlines, in this regard, the importance of adequate and coordinated fiscal, structural and regulatory policies that complement the ECB’s monetary policy actions, which are also capable of supporting household incomes and providing targeted support to companies suffering from supply bottlenecks and high energy costs;

Amendment 56 #

Motion for a resolution
Paragraph 2

2. Stresses that ~~while~~ the primary objective of the European Central Bank (ECB) is to maintain price stability, the primary objective of the Union as a whole should be to minimise the impact of current turbulences on the real economy, thereby defending the wellbeing of its citizens and preserving its production structure and the international competitiveness of its companies; underlines, in this regard, the importance of adequate and coordinated fiscal, structural and regulatory policies that complement the ECB’s monetary policy actions, which are also capable of supporting household incomes and providing targeted support to companies suffering from supply bottlenecks and high energy costs; underlines, in this regard, the importance of adequate and coordinated fiscal, structural and regulatory policies that complement the ECB’s monetary policy actions to bring down inflation; shares ECB President Lagarde's consideration that all supportive fiscal policy measures must be temporary, targeted and tailored in order not to furter spur inflation;

Amendment 57 #

Motion for a resolution
Paragraph 2

2. Stresses that ~~while the primary objective of the European Central Bank (ECB) is to maintain price stability,~~ the primary objective of the Union as a whole should be to minimise the impact of current turbulences on the real economy, thereby defending and supporting the wellbeing of its citizens, in particular the most vulnerable ones, and preserving its production structure, a~~nd the international competitiveness of its companie~~s well as decent working conditions; underlines, in this regard, the importance of adequate and coordinated fiscal, ~~structural~~public investment and regulatory policies ~~that complement the ECB’s monetary policy actions, which are also capable of~~, supporting household incomes and providing targeted support to companies, specially SMEs, suffering from supply bottlenecks ~~and~~, high energy costs and prooven with no economic capacity;

Amendment 58 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Motion for a resolution
Paragraph 2

2. Stresses that ~~while~~ the primary objective of the European Central Bank (ECB) is to maintain price stability, ~~the primary objective of the Union as a whole should be to minimise the impact of current turbulences on the real economy, thereby~~which is a necessary condition in order to defend~~ing~~ the wellbeing ~~of its citizens and preserving its~~and purchasing power of our citizens, our production structure and the international competitiveness of ~~its~~our companies; underlines, in this regard, the importance of adequate and coordinated fiscal, structural and regulatory policies that complement the ECB’s monetary policy actions, which do not aggrevate inflation but are also capable of supporting vulnerable household incomes and providing targeted and temporary support to companies suffering from supply bottlenecks and high energy costs;

Amendment 59 #

Motion for a resolution
Paragraph 2

2. Stresses that while the primary objective of the European Central Bank (ECB) is to maintain price stability, the ~~primary~~ objectives of the Union as a whole should be to minimise the impact of current turbulences on the real economy, thereby defending the wellbeing of its citizens and preserving its production structure and the international competitiveness of its companiesEuropean Union are also those set out in Article 3 TEU; underlines, in this regard, the importance of adequate and coordinated fiscal, structural and regulatory policies that complement the ECB’s monetary policy actions, which are also capable of supporting household incomes and providing targeted support to companies suffering from supply bottlenecks and high energy costs;

Amendment 6 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Gilles BOYER, Eva Maria POPTCHEVA

Motion for a resolution
Citation 32 a (new)

— having regard to the paper of the International Monetary Fund of September 2022 entitled ‘Reforming the EU Fiscal Framework: Strengthening the Fiscal Rules and Institutions’,

Amendment 60 #

Jonás FERNÁNDEZ, Marek BELKA, Alfred SANT, Margarida MARQUES, René REPASI, Csaba MOLNÁR, Aurore LALUCQ, Marc ANGEL, Joachim SCHUSTER, Costas MAVRIDES, Pedro SILVA PEREIRA, Pedro MARQUES

Motion for a resolution
Paragraph 2

Amendment 61 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Gilles BOYER, Eva Maria POPTCHEVA

Motion for a resolution
Paragraph 2

2. Stresses that ~~while~~ the primary objective of the European Central Bank (ECB) is to maintain price stability, whereas the primary objective of the Union as a whole should be to minimise the impact of current turbulences on the real economy, thereby defending the wellbeing of its citizens and preserving its production structure and the international competitiveness of its companies; underlines, in this regard, the importance of adequate and coordinated fiscal, structural and regulatory policies and reforms that complement the ECB’s monetary policy actions~~, which are also capable of supporting household incomes and providing targeted support to companies suffering from supply bottlenecks and high energy costs~~;

Amendment 62 #

Motion for a resolution
Paragraph 2

2. Stresses that while the primary objective of the European Central Bank (ECB) is to maintain price stability, the ~~primary objective of the Union as a whole~~Union should beaim to minimise the impact of current turbulences on the real economy, thereby defending the wellbeing of its citizens and preserving its production structure and the international competitiveness of its companies; underlines, in this regard, the importance of adequate and coordinated fiscal, structural and regulatory policies that complement the ECB’s monetary policy actions, which are also capable of supporting household incomes and providing targeted support to companies and SMEs suffering from supply bottlenecks and high energy costs;

Amendment 63 #

Motion for a resolution
Paragraph 2 a (new)

2 a. Notes that 22.4% of the EU population is at risk of poverty or social exclusion, of whom 24.9% are children, 23.3% are women, and 18.2% are over 65, and that the risk of poverty among people with disabilities rises to 34.6%; is alarmed that the youth unemployment rate in the EU is above 15%, stresses that it is these population groups that are hardest hit by the current energy crisis and onerous environmental standards, and calls on the Commission to support Member States in their fight against poverty and to plan environmental policy carefully in order to avoid further impoverishing EU citizens;

Amendment 64 #

Motion for a resolution
Paragraph 2 a (new)

2 a. Welcomes the European Commission’s call on Member States to deliver targeted measures to offset the impact of high energy prices on vulnerable households and companies; agrees with the European Commission in stressing that such measures should maintain incentives for energy savings; recalls that Member States find themselves in starkly diverging positions regarding the fiscal space available to them; notes that this situation entails the risk of furthering divergence between Member States as the energy crisis continues;

Amendment 65 #

Motion for a resolution
Paragraph 2 a (new)

2 a. Stresses that the current restrictive monetary policy followed by the European Central Bank (ECB) encompasses recessionary consequences, particularly for the most vulnerable, increases the risk of bank instability by promoting credit defaults and worsens the financing conditions in international markets, especially for countries with higher debt- to-GDP ratios; calls on the ECB to reassess its policy and to halt the increase of interest rates;

Amendment 66 #

Motion for a resolution
Paragraph 2 a (new)

2 a. Notes with concern the Commission's analysis that 70% of the measures introduced by Member States to cushion the economic and social impact of the exceptional increase in energy prices were not focused on vulnerable households and exposed firms and two thirds of them did not provide incentives to reduce energy demand;1a _________________ 1a Annual Sustainable Growth Survey 2023, part 2.4, p. 14

Amendment 67 #

Motion for a resolution
Paragraph 2 b (new)

2 b. Notes the increased need for fiscal space in most Member States; underlines that in periods of increasing interest rates, Member States should also consider raising more revenues on higher earners or on industries and firms that are highly profitable; notes how a healthy balance between government revenues and expenditures is also necessary to reduce legacy debt and to build up buffers in times of economic recovery;

Amendment 68 #

Motion for a resolution
Paragraph 2 b (new)

2 b. Stresses that a rising rate- environment puts considerable pressure on highly indebted Member States;

Amendment 69 #

Jonás FERNÁNDEZ, Alfred SANT, Margarida MARQUES, René REPASI, Csaba MOLNÁR, Aurore LALUCQ, Marc ANGEL, Costas MAVRIDES, Pedro SILVA PEREIRA, Pedro MARQUES

Motion for a resolution
Paragraph 2 c (new)

2 c. Calls for the general escape clause under the Stability and Growth (SGP) pact to remain activated as long as Member States are recovering from the crises caused by the pandemic and the Russian war of aggression against Ukraine; notes that the policy leeway created by the general escape clause is necessary to allow Member States to strengthen their competitiveness as well as their economic and social resilience under the current circumstances and within the constraints of the SGP in its current form;

Amendment 7 #

Motion for a resolution
Recital A a (new)

Aa. whereas the possibility of a recession in 2023 cannot be ruled out;

Amendment 70 #

Motion for a resolution
Paragraph 3

3. Observes the sizeable impact of the NextGenerationEU (NGEU) instrument as estimated by the Commission, the ECB and the International Monetary Fund, in particular an increase in GDP growth of up to 1.5 % higher than without NGEU investment if the instrument is implemented effectively; notes that a key channel for the effectiveness of NGEU is the implementation of the reform component in order to increase the long- term potential output levels of EU Member States;

Amendment 71 #

Motion for a resolution
Paragraph 3

3. Observes the sizeable impact of the NextGenerationEU (NGEU) instrument as estimated by the Commission, the ECB and the International Monetary Fund, in particular an increase in GDP growth of up to 1.5 % higher than without NGEU investment if the instrument is implemented effectively; stresses that NGEU is a one-off emergency instrument; recognizes that the EU economy was already in full swing recovery before payments were being reimbursed to Member States;

Amendment 72 #

Motion for a resolution
Paragraph 3

3. Observes the sizeable impact of the NextGenerationEU (NGEU) instrument as estimated by the Commission, the ECB and the International Monetary Fund, in particular an increase in GDP growth of up to 1.5 % higher than without NGEU investment if the instrument is implemented effectively; stresses that the majority of reforms and investments are yet to be implemented;

Amendment 73 #

Motion for a resolution
Paragraph 3 a (new)

3 a. Is concerned about the current public debt levels in the Member States and the macro-economic risks these debt levels entail; points out that these debt levels can only be sustained by sufficient economic growth and fiscal discipline;

Amendment 74 #

3 b. Remains concerned about the low productivity growth in the EU;

Amendment 75 #

Motion for a resolution
Paragraph 3 c (new)

3 c. Recalls that growth-friendly structural reforms do not require fiscal space, but rather political, legislative and administrative efforts aimed at strengthening efficiency of the public sector, market forces and private sector initiatives;

Amendment 76 #

Motion for a resolution
Paragraph 3 d (new)

3 d. Strongly believes that greater European energy self-sufficiency, diversification of energy sources, enhanced intra-European energy connections and policies based on technology neutrality would strengthen the EU economy;

Amendment 77 #

Motion for a resolution
Paragraph 3 a (new)

3 a. Notes that high aggregated debt levels are not only a consequence of the Covid-19 crisis or the energy cost crisis, but also a consequence of lax fiscal policies over the past years and poor enforcement of the EU's fiscal rules;

Amendment 78 #

José Manuel GARCÍA-MARGALLO Y MARFIL, Isabel BENJUMEA BENJUMEA

Motion for a resolution
Paragraph 3 b (new)

3 b. Agrees with the Commission's observation that strengthening EU competitiveness and its long-term potential for sustainable growth remain key for economic prosperity and social welfare1a; _________________ 1a Annual Sustainable Growth Survey 2023, part. 2.2

Amendment 79 #

Motion for a resolution
Paragraph 3

3. Observes the sizeable impact of the NextGenerationEU (NGEU) instrument as estimated by the Commission, the ECB and the International Monetary Fund, in particular an increase in GDP growth of up to 1.5 % higher than without NGEU investment if the instrument is implemented effectively; stresses that the European Court of Auditors, in its Special Report 21/2022, calls for greater transparency and further action to improve the control mechanisms proposed by the Member States;

Amendment 8 #

Motion for a resolution
Recital B

Amendment 80 #

Motion for a resolution
Paragraph 3 d (new)

3 d. Concurs with the Commission's recommendation that fiscal policies should aim at achieving prudent medium- term fiscal positions and ensuring fiscal sustainability through gradual consolidation and investment and reforms enhancing sustainable growth;1a _________________ 1a Annual Sustainable Growth Survey 2023, part. 2.4, p. 15

Amendment 81 #

Motion for a resolution
Paragraph 3 e (new)

3 e. Highlights the European Fiscal Board's analysis that following the pandemic, the Commission and the Council eased EU surveillance paying less attention to the medium term while Member States have failed to translate a better-than-expected economic recovery into a corresponding improvement in budgetary positions1a; _________________ 1a European Fiscal Board. Annual Report 2022. p. 3-4

Amendment 82 #

José Manuel GARCÍA-MARGALLO Y MARFIL

Motion for a resolution
Paragraph 3 f (new)

3 f. Concurs with the analysis of the European Fiscal Board that the continued suspension of the SGP is creating a harmful vacuum and calls for an urgent review of the EU fiscal framework1a; highlights the European Fiscal Boards observation that the de facto suspension of EU fiscal rules is undermining sound fiscal policy making in the EU and that the reduced attention to the medium term and expenditure dynamics in very-high debt countries are a matter of concern; _________________ 1a European Fiscal Board. Annual Report 2022. p. 5-6.

Amendment 83 #

3a. Highlights the role of the SURE mechanism as a crucial element in protecting citizens and mitigating the consequences of the coronavirus pandemic;

Amendment 84 #

Motion for a resolution
Paragraph 3 c (new)

3 c. Concurs with the Commisison's conclusion that a broad-based fiscal impulse to the economy would not be appropriate in 2023 and that a careful, coordinated approach is necessary for designing measures in response to energy price developments;1a _________________ 1a Annual Sustainable Growth Survey 2023, part. 2.4, p. 14

Amendment 85 #

Motion for a resolution
Paragraph 4

4. Recalls that the European Semester is a well-established framework for coordinating the budgetary, economic, social and employment policies across the European Union; recalls that the Commission underlines that the European Semester aims to identify relevant policy options, clarify policy priorities, provide policy guidance and ensure policy monitoring and follow-up;

Amendment 86 #

Motion for a resolution
Paragraph 4

4. ~~Recall~~Notes that the European Semester is ~~a well-establis~~thed framework for coordinating the budgetary, economic, social and employment policies across the European Union; Regrets the progressively enlarging of its scope of action, which should be further simplified in order not to constrain the sovereignty of the Member States;

Amendment 87 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Gilles BOYER, Eva Maria POPTCHEVA

Motion for a resolution
Paragraph 4

4. Recalls that the European Semester for Economic Policy Coordination is a well-established framework for coordinating the budgetary, economic, social and employment policies across the European Union;

Amendment 88 #

Motion for a resolution
Paragraph 4

4. Recalls that the European Semester is ~~a well-~~the established framework for coordinating the budgetary, economic, social and employment policies across the European Union;

Amendment 89 #

Motion for a resolution
Paragraph 4 a (new)

4 a. Notes that through the years, the Semester process has lacked ownership by national and regional entities as well as the European public;

Amendment 9 #

Motion for a resolution
Recital B

B. whereas the EU labour market has proved particularly resilient, with an additional two million people in employment, leading to a record low unemployment rate of 6.2 % in 2022; whereas according to the Commission’s autumn economic forecast the public sector was a key contributor to the increase in employment; whereas despite labour market tightness wage growth has remained moderate and has failed to keep up with inflation, implying real wage losses of, on average, 8% between Q4 2020 and Q2 2022 in the Euro Area according to ECB research13a; whereas the unemployment rate is expected to increase slightly in 2023 (6.5 %), before marginally coming down again in 2024 (6.2 %); _________________ 13a https://www.ecb.europa.eu/press/blog/date /2022/html/ecb.blog221125~d34babdf3e.e n.html

Amendment 90 #

Motion for a resolution
Paragraph 5

5. Recalls the close link between the European Semester and the implementation of the RRF, whereby the national recovery and resilience plans (NRRPs) are expected to contribute effectively to addressing all or a significant subset of the challenges identified in the relevant country-specific recommendations addressed to each Member State in the context of the European Semester; takes the view that the use of these funds is a matter of Member States’ national sovereignty and that the way in which they are used should not be subject to political blackmail to enforce reforms unwanted by the European nations’ citizens;

Amendment 91 #

Stéphanie YON-COURTIN, Olivier CHASTEL, Gilles BOYER, Eva Maria POPTCHEVA

Motion for a resolution
Paragraph 5

5. Recalls the close link between the European Semester and the implementation of the RRF, whereby the national recovery and resilience plans (NRRPs) are expected to contribute effectively to addressing all or a significant subset of the challenges identified in the relevant country-specific recommendations addressed to each Member State in the context of the European Semester; stresses the importance that reforms and investments under the Recovery and Resilience Plans meet the climate targets of the regulation and are in full respect of the “do no significant harm” principle;

Amendment 92 #

Motion for a resolution
Paragraph 5

5. Recalls the close link between the European Semester and the implementation of the RRF, whereby the national recovery and resilience plans (NRRPs) are expected to contribute effectively to addressing all or a significant subset of the challenges identified in the relevant country-specific recommendations addressed to each Member State in the context of the European Semester; calls in that regard for an efficient monitoring of the implementation of the country-specific recommendations and the relevant reforms;

Amendment 93 #

Motion for a resolution
Paragraph 5

5. Recalls the close link between the European Semester and the implementation of the RRF, whereby the national recovery and resilience plans (NRRPs) are expected to contribute effectively to addressing all or a significant subset of the challenges identified in the relevant country-specific recommendations addressed to each Member State in the context of the European Semester; calls on the Commission to halt disbursements in case a Member State does not sufficiently fulfil the required reforms;

Amendment 94 #

Motion for a resolution
Paragraph 5

5. ~~Recall~~Welcomes the close link between the European Semester and the implementation of the RRF, whereby the national recovery and resilience plans (NRRPs) are expected to contribute effectively to addressing all or a significant subset of the challenges identified in the relevant country-specific recommendations addressed to each Member State in the context of the European Semester;

Amendment 95 #

Motion for a resolution
Paragraph 5

5. ~~Recall~~Notes the close link between the European Semester and the implementation of the RRF, whereby the national recovery and resilience plans (NRRPs) are expected to contribute effectively to addressing all or a significant subset of the challenges identified in the relevant country-specific recommendations addressed to each Member State in the context of the European Semester;

Amendment 96 #

Motion for a resolution
Paragraph 5 a (new)

5 a. Encourages the European Commission to make sure that this requirement is adhered to when scrutinising the implementation of national recovery plans; notes that beyond the scope of the RRF, those recommendations that are not addressed remain valid and will continue to be monitored under the European Semester framework;

Amendment 97 #

Motion for a resolution
Paragraph 5 a (new)

5 a. Insists that NRRPs must respect the principle of subsidiarity and should not hamper the Member States’ autonomy to manage sectors which fall outside EU competence;

Amendment 98 #

Motion for a resolution
Paragraph 6

Amendment 99 #

Motion for a resolution
Paragraph 6

6. Highlights the key role being played by the NRRPs in driving the Member States’ reform and investment agendas; recalls the importance of reforms in bolstering recovery and future productivity growth and as enablers of investment; stresses the crucial role of investments in boosting growth; recalls the importance of verifying the effective implementation of the RRF and that the funds actually reach the real economy and SMEs;

source: 740.642

2023/01/19 BUDG 46 amendments...

Amendment 1 #

Margarida MARQUES, Alfred SANT, Victor NEGRESCU, Jonás FERNÁNDEZ

Draft opinion
Paragraph 1

1. Underlines the exceptionally uncertain EU health, social and economic outlook resulting from the lasting impact of the COVID-19 pandemic and the consequences of the war against Ukraine; Underlines that the European Semester should enable to strengthen Member States public healthcare system to ensure high quality, accessible and equitable healthcare for all citizens’, especially in pandemic periods; Emphasises that the Union’s recovery from the COVID-19 crisis and energy crisis offers a unique opportunity to boost the transition to climate neutrality; stresses the importance of significant public investment to support a fair and inclusive recovery in the EU, upward social and economic convergence, social and economic resilience;

Amendment 10 #

Draft opinion
Paragraph 2

2. Welcomes the robustness of the labour market; highlights the stabilising effect of national ~~short-time~~ work schemes supported by the European instrument for temporary support to mitigate unemployment risks in an emergency (SURE); welcomes the fact that the recovery and resilience facility is mitigating those consequences and contributing to ~~the Union’s competitive sustainability~~a sustainable and resilient Union; stresses that its successful implementation requires the completion of milestones and targets, in particular compliance with the rule of law and the general regime of conditionality, to be monitored transparently and thoroughly; stresses that large parts of the success of the RRF are due to the mobilisation of financial support for reforms and investments undertaken by Member States; welcomes the Commission’s proposal to include a REPowerEU chapter in the national recovery and resilience plans; insists that the financing of REPowerEU must not divert resources away from other agreed EU priorities;

Amendment 11 #

Andor DELI, Tamás DEUTSCH, András GYÜRK, Enikő GYŐRI

Draft opinion
Paragraph 2

Amendment 12 #

Draft opinion
Paragraph 2

Amendment 13 #

Draft opinion
Paragraph 2

2. Welcomes the robustness of the labour market; highlights the stabilising effect of national short-time work schemes supported by the European instrument for temporary support to mitigate unemployment risks in an emergency (SURE); in particular in cushioning the social and economic consequences of pandemic, preserving human capital in companies and facilitating the ramping up of companies’ activity; welcomes the fact that the recovery and resilience facility is mitigating those consequences and contributing to the Union’s competitive sustainability; stresses that its successful implementation requires the completion of milestones and targets, in particular compliance with the rule of law and the general regime of conditionality, to be monitored transparently and thoroughly; welcomes the Commission’s proposal to include a REPowerEU chapter in the national recovery and resilience plans; insists that the financing of REPowerEU must not divert resources away from other EU priorities;

Amendment 14 #

Margarida MARQUES, Alfred SANT, Victor NEGRESCU, Jonás FERNÁNDEZ

Draft opinion
Paragraph 2 a (new)

2 a. Stresses in particular that compliance with the rule of law and with the general regime of conditionality as the protection of the Union budget is a fundamental pre-requisite to access the fund and reiterates the need for Member States to have the necessary control, audit and enforcement mechanisms in place to ensure respect for the rule of law and protect the EU’s financial interests, notably to prevent fraud, corruption and conflicts of interest and secure transparency; calls on the Commission and the Member States to place the RRF implementation at the heart of the 2023 European Semester cycle to reap the full potential of the Fund in supporting broad and ambitious reforms and investment in key areas such as judicial systems, the economic and business environment, digitalisation, health, education, culture, employment and social care.

Amendment 15 #

Draft opinion
Paragraph 2 a (new)

2 a. Welcomes however the European Commission’s call on Member States to deliver targeted measures to offset the impact of high energy prices on vulnerable households and companies; agrees with the European Commission in stressing that such measures should maintain incentives for energy savings; recalls that Member States find themselves in significantly diverging positions regarding the fiscal space available to them; notes that this situation entails the risk of furthering divergence between Member States and of potential distortions of the Single Market as the energy crisis continues and progresses.

Amendment 16 #

Draft opinion
Paragraph 2 a (new)

2 a. Reminds that meeting the goals of the European Green Deal and Paris Agreement requires significant and targeted fiscal efforts; stresses the key role that national budgets will need to play in financing the green transition, in the absence of joint funding that would reduce the cost and align incentives as witnessed in the RRF process; highlights the need for an EU Sovereignty Fund to ensure all Member States have the fiscal leeway to accelerate the transition while preserving fair competition in the single market;

Amendment 17 #

Draft opinion
Paragraph 2 a (new)

2 a. Calls upon the European Commission to be open, transparent and available for the rapid revisions of NRRPs especially if the reforms included risk to generate negative social and development effects;

Amendment 18 #

Draft opinion
Paragraph 2 b (new)

2 b. Notes that the EU economy is facing a risk of stagflation in 2023 with a real GDP growth set to reach only 0.3% in 2023 and an expected inflation of 7%; stresses the importance of maintaining significant, targeted and well-coordinated investment at national and EU level with a view to mitigating the economic and social - and thus also the political - consequences and fuelling the competitive sustainability of the EU; underlines that the weak economic outlook of the Union weakens its international competitiviness; in this context, calls on all actors to make effective use of the EU budget and its headroom;

Amendment 19 #

Draft opinion
Paragraph 3

3. Stresses that the Union budget primarily supports strategic, targeted and growth-enhancing investment and entails a lower risk of inflationary pressure compared to untargeted and extensive national fiscal stimulus; considers that a revision of the Stability and Growth Pact is needed in order to promote a just, sustainable and future-oriented economy; calls on the Commission and the Member States to urgently reform the EU economic governance framework well in advance of the deactivation of the general escape clause in order to effectively promote fair, inclusive and sustainable growth, enhance democratic accountability and avoid a new debt crisis; calls on the Commission and the Member States, in the revision of the EU economic governance framework, to treat gross national income- based contributions to the Union budget in the same way as the national investment commitment;

Amendment 2 #

Draft opinion
Paragraph 1

1. Underlines the exceptionally uncertain EU economic outlook resulting from the lasting impact of the COVID-19 pandemic and the consequences of the Russian unjustified war against Ukraine; highlights the role of NextGenerationEU in the swift, coordinated and united economic policy response to the COVID crisis and its contribution to the fast recovery with real GDP expanding by 5.4% in 2021;

Amendment 20 #

Margarida MARQUES, Alfred SANT, Victor NEGRESCU, Jonás FERNÁNDEZ

Draft opinion
Paragraph 3

3. Stresses that the Union budget primarily supports strategic, targeted and growth-enhancing investment and entails a lower risk of inflationary pressure compared to untargeted and extensive national fiscal stimulus; calls ~~on the Commiss~~for using amortisation ands the ~~Member States, in the revision of the EU economic governance framework, to treat gross national income-based~~accounting method for green and social investments and national co-financing of cohesion funds compliant with Paris agreement spreading the cost of net public investment over the life-cycle of an investment and thus allowing for speeding up of much needed investments; calls for the countr~~ibutions to the Union budget in the same way as the national investment commitment~~y specific debt adjustment paths should be based on key economic variables such as interest rate/growth differentials, initial debt level, composition of public debt stock;

Amendment 21 #

Draft opinion
Paragraph 3

3. Stresses that the Union budget primarily supports strategic, targeted and growth-enhancing investment ~~and entails a lower risk of inflationary pressure compared to untargeted and extensive national~~; believes that RRF provides a solid foundation for discussions on how to allow sufficient public investment under the fiscal ~~stim~~rulues; calls on the Commission and the Member States, in the revision of the EU economic governance framework, to treat gross national income- based contributions to the Union budget in the same way as the national investment commitment; under the European Fund for Strategic Investments in the context of the Commission communication on flexibility .

Amendment 22 #

Charles GOERENS, Olivier CHASTEL, Fabienne KELLER, Martin HOJSÍK

Draft opinion
Paragraph 3 – point 1 (new)

(1) calls the EU Members States to align their national budget to the objectives set in the Paris agreement;

Amendment 23 #

Margarida MARQUES, Alfred SANT, Victor NEGRESCU, Jonás FERNÁNDEZ

Draft opinion
Paragraph 3 a (new)

3 a. Recalls that the swift and timely roll-out of the NextGenerationEU (NGEU) fiscal stimulus is underpinned by the issuance of bonds; acknowledges and welcomes that the Commission has steadily and successfully issued a total of EUR 170.8 billion in long-term funding since the start of the programme despite the increasingly challenging market conditions; underlines that by making the Union one of largest bond issuers in Europe, NGEU can contribute to mitigate the current volatility of EU capital market; notes that the financing of MFA+ for Ukraine will further increase this role;

Amendment 24 #

Draft opinion
Paragraph 3 a (new)

3 a. Stresses that the European Parliament should be fully involved in the reform of the economic governance framework as well as the future conduct of economic governance in the EU, including in the establishment and management of fiscal instruments.

Amendment 25 #

Charles GOERENS, Olivier CHASTEL, Fabienne KELLER, Martin HOJSÍK

Draft opinion
Paragraph 4

4. Is concerned about at the economic impact of the aforementioned crises on the Union budget and on national budgets; stresses that crisis response has led Member States to adopt extensive economic measures; highlights the long- term impact of these measures on economic sustainability~~, but considers that it should be possible to return to a state of economic discipline in the long run~~; Agrees with the Commission’s orientations as regard the simplification of the framework, differences in Member States’ fiscal paths, the use of a more comprehensive debt sustainability analysis and the general escape clauses; suggests the European Semester should mirror the medium-term nature of the future economic policy coordination framework; iIs also concerned about the potential impact of the Union’s increasing debt repayment obligations if not appropriately handled; stresses that ~~Union borrowing should not increase further as long as there are no new own resources to cater for debt repayment~~new own resources to cater for debt repayment need to be implemented in urgency, in order to safeguard the integrity of the EU’s budget and policies as well as its financial capacity.

Amendment 26 #

Draft opinion
Paragraph 4

4. Is concerned at the economic impact of the aforementioned crises on the Union and on national budgets; stresses that crisis response has led Member States to adopt extensive economic measures; ~~highlights the long-term impact of~~stresses that Union borrowing should not increase further as long as thesre measures on economic sustainability, but considers that it should be possible to return to a state of economic discipline in the long run; is also concerned at the Union’s increasing debt repayment obligations if not appropriately handled; stresses that Union borrowing should not increase further as long as there are no new own resources to cater for debt repaymentare no new own resources to cater for debt repayment; recalls that the design of NextGenerationEU requires debt repayment through the introduction of a basket of new own resources of the EU budget; welcomes the ratification of the Own Resources Decision by all Member States; calls on the Commission and the Council to respect in full the timeline for the introduction of new Own Resources included in the legally-binding roadmap as agreed in the Interinstitutional Agreement so that the debt can be serviced in a budgetary-neutral manner for Member States.

Amendment 27 #

Andor DELI, Tamás DEUTSCH, András GYÜRK, Enikő GYŐRI

Draft opinion
Paragraph 4

4. Is concerned at the economic impact of the aforementioned crises on the Union and on national budgets; stresses that crisis response has led Member States to adopt extensive economic measures; highlights the long-term impact of these measures on economic sustainability, but considers that it should be possible to return to a state of economic discipline in the long run; is also concerned at the Union’s increasing debt repayment obligations if not appropriately handled; stresses that no further Union borrowing should ~~not increase further as long as there are no new own resources to cater for debt repayment~~be allowed.

Amendment 28 #

Margarida MARQUES, Alfred SANT, Victor NEGRESCU, Jonás FERNÁNDEZ

Draft opinion
Paragraph 4

4. Is concerned at the social and economic impact of the aforementioned crises on the Union and on national budgets; regrets that, in the past, the European Semester process has proved insufficient to address social and economic disparities and inequalities in the EU stresses that crisis response has led Member States to adopt extensive economic measures; highlights the long- term impact of these measures on economic sustainability, but considers that it should be possible to return to a state of economic discipline in the long run; is also concerned at the Union’s increasing debt repayment obligations if not appropriately handled; stresses that Union borrowing should not increase further as long as there are no new own resources to cater for debt repayment.; recalls that the design of NextGenerationEU requires debt repayment through the introduction of new own resources to the EU budget;

Amendment 29 #

Draft opinion
Paragraph 4

4. Is concerned at the economic impact of the aforementioned crises on the Union and on national budgets; ~~stress~~welcomes that crisis response has led Member States to adopt ~~extensive~~necessary economic and social measures; highlights the positive long-term impact of these measures on economic sustainability, but considers that it should be possible to return to a state of economic discipline in the long run; is also concerned at the Union’s increasing debt repayment obligations if not appropriately handled; stresses that Union borrowing should not increase further as long as there are nowell-targeted measures and public investments on economic growth, social inclusion and environmental sustainability that will contribute to increase potential growth and fiscal sustainability in the long run; considers that the Union’s debt should be accompanied by the introduction of new own resources to cater for debt repayment obligations.

Amendment 3 #

Draft opinion
Paragraph 1

1. Underlines the exceptionally uncertain EU economic outlook resulting from the lasting impact of the COVID-19 pandemic and the consequences of the war against Ukraine and the energy and cost of living crisis;

Amendment 30 #

José Manuel FERNANDES

Draft opinion
Paragraph 4 a (new)

4 a. Stresses that preserving investors’ trust in the Union as a quasi-sovereign issuer requires a clear cut arrangement for the repayment of the debt; calls therefore on the Member States to speed up the negotiations on the proposal for an own resources Decision based on the EU Emissions Trading System, the Carbon Border Adjustment Mechanism and Pillar I of the OECD international agreement on the minimum taxation of multinationals; calls on the Commission to put forward a proposal for the second basket of new own resources in the third quarter of 2023 at the latest so that the NGEU debt can be re-financed without detriment to future programmes;

Amendment 31 #

Margarida MARQUES, Alfred SANT, Victor NEGRESCU, Jonás FERNÁNDEZ

Draft opinion
Paragraph 4 a (new)

4 a. Calls for a better correlation of the European Semester with the Digital Economy and Society Index (DESI); calls on Member States to take the necessary measures to reinforce their digital infrastructure, the connectivity and the methods used by schools and learning centres for digital education and learning in the context of the pandemic and reiterates the need to accelerate the reforms implementing the digital transformation ensuring that all Europeans can take advantage of it;

Amendment 32 #

Draft opinion
Paragraph 4 a (new)

4 a. Believes that future reforms of the European Semester should draw on the lessons learned on the Next Generation EU, the RRF and the Support to mitigate Unemployment Risks in an Emergency (SURE) instrument, especially as regards more transparent and democratic processes as well as policy coordination and collaborative approaches to the definition of reforms and investment priorities and projects;

Amendment 33 #

Draft opinion
Paragraph 4 a (new)

4a. Calls on the Commission to act decisively in order to tackle tax fraud, tax avoidance and evasion, as well money- laundering issues, which drain potential resources from national budgets and hamper governments’ capacity to act;

Amendment 34 #

Draft opinion
Paragraph 4 a (new)

4 a. Calls on the need to further strengthen the link between quality employment, gender equality, sustainable growth, social and climate goals, with the European Semester, with the ultimate objective of improving quality of life and citizens’ wellbeing;

Amendment 35 #

Andor DELI, Tamás DEUTSCH, András GYÜRK, Enikő GYŐRI

Draft opinion
Paragraph 4 a (new)

4 a. Expresses its concerns that the EU economic governance framework as a whole is losing its original scope as over the years the European Semester has been overloaded by policies out of its original scope, leading to debates of non-economic nature.

Amendment 36 #

Draft opinion
Paragraph 4 b (new)

4 b. Welcomes further the inclusion of the Sustainable Development Goals to the European semester process; calls on the Commission to continue the reform of the European Semester to balance economic, social and environmental priorities, so that it drives a long-term social, environmental and economic transformation and improves the integration of the 2030 Agenda, the European Pillar of Social Rights and the European Green Deal at all levels, fully involving local and regional authorities and complementing reforms and investments in the Member States; considers that such a reform should ensure that European SDG policy coordination does not lead to a policy process parallel to the European Semester, but instead consists of an integrated and coherent approach based on a new sustainable development pact; expects the Semester process to enhance the capacities of the Member States in monitoring progress on SDG implementation;

Amendment 37 #

Draft opinion
Paragraph 4 b (new)

4b. Emphasises that the EU is facing an unprecedented challenge in mitigating the economic impact of the energy crisis and Russia’s criminal, unjustified and illegal aggression in Ukraine, taking into account the EU’s strategy of having a lasting influence on Member States’ resilience, and takes the view that the economic recovery must be achieved by strengthening the internal market, research and innovation, and by boosting competitiveness, whilst also improving the situation of SMEs and their access to private capital;

Amendment 38 #

Draft opinion
Paragraph 4 b (new)

4 b. Underlines its concern about the gaps existing in Europe on how access to education and lifelong learning is being dealt with during the pandemic and calls for the need to make sure everyone continues to get access to quality education and lifelong learning, knowing this represents a key feature in the European Pillars for Social Rights in achieving sustainable long term development of the European Union and Member States;

Amendment 39 #

Andor DELI, Tamás DEUTSCH, András GYÜRK, Enikő GYŐRI

Draft opinion
Paragraph 4 b (new)

4 b. Highlights the need for better focusing the country specific recommendations, remaining within the remit of EU competences and avoiding double standards. Emphasises the importance of pursuing genuine dialogue between the Commission and the Member States during the entire semester process. This is a pre-condition of ownership and better implementation.

Amendment 4 #

Margarida MARQUES, Alfred SANT, Victor NEGRESCU, Jonás FERNÁNDEZ

Draft opinion
Paragraph 1

1. Underlines the exceptionally uncertain EU economic outlook resulting from the lasting impact of the COVID-19 pandemic, in particular in the field of health and education, and the consequences of the war against Ukraine, inflation and energy crisis;

Amendment 40 #

Draft opinion
Paragraph 4 b (new)

4 b. Considers that all options to incentivise Member State investments to tackle the long-term challenges should be on the table, specifically the revision of the Stability and Growth Pact to promote a future-oriented economy and the extension of lending and borrowing capacities at EU level, building on Next Generation EU;

Amendment 41 #

Draft opinion
Paragraph 4 c (new)

4 c. Underlines the need to increase the role and visibility of education in the European Semester format in order to assess the evolutions and reforms of the educational systems and consistently check the implementation of the EU actions plans, agendas and recovery targets across the Union, especially in the context of the pandemic; calls, in this regard, for an extensive chapter dedicated to education and digital education;

Amendment 42 #

Draft opinion
Paragraph 4 c (new)

4c. Is concerned about the EU’s overly ambitious climate policy which, alongside the fact that some Member States have been dependent on Russian energy resources for many years, has contributed to the current energy crisis that is hitting citizens and SMEs the hardest; calls for a temporary suspension of some of the ambitious legislative plans linked to climate policy;

Amendment 43 #

Margarida MARQUES, Alfred SANT, Victor NEGRESCU, Jonás FERNÁNDEZ

Draft opinion
Paragraph 4 c (new)

4 c. Reiterates the need for Member States to have the necessary control in place to ensure respect for the rule of law and protect the EU’s financial interests, notably to prevent fraud, corruption and conflicts of interest and secure transparency;

Amendment 44 #

Draft opinion
Paragraph 4 c (new)

4 c. Considers that an adequately- designed permanent fiscal capacity at EU level could play a crucial role in maintaining sufficiently high levels of strategic investment and ensuring an appropriate fiscal stance at the aggregate level;

Amendment 45 #

Margarida MARQUES, Alfred SANT, Victor NEGRESCU, Jonás FERNÁNDEZ

Draft opinion
Paragraph 4 d (new)

4 d. Calls for the timely establishment of an additional permanent special instrument over and above the MFF ceilings so that the EU budget can better adapt and quickly react to crises and their social and economic effects; calls on the Commission to ensure this common crisis instrument can be effectively and swiftly activated as needs arise; expects the Commission to support the community method in all its future proposals and reiterates that all new instruments should be under the purview of the budgetary authority; calls on the Commission that its proposals namely the one for a European Sovereignty Fund intended to secure the strategic autonomy of the Union and reduce dependence on non-EU countries in key sectors be established according to the ordinary legislative procedure and be fully incorporated into the MFF, thereby ensuring full oversight by Parliament, with the MFF ceilings adjusted to accommodate the Fund;

Amendment 46 #

Draft opinion
Paragraph 4 d (new)

4 d. Calls on the Commission to develop a climate indicator - to be used as a guide for the European Semester -to assess the discrepancy between the structure of Member States’ budgets and the Paris-aligned scenario for each of their national budgets; stresses the need for this indicator to provide Member States with information on their trajectory within the framework of the Paris Agreement in order to ensure the achievement of climate-neutrality targets by 2050;

Amendment 5 #

Margarida MARQUES, Alfred SANT, Victor NEGRESCU, Jonás FERNÁNDEZ

Draft opinion
Paragraph 1

1. Underlines the exceptionally uncertain EU economic outlook resulting from the lasting impact of the COVID-19 pandemic and the consequences of the ~~war against~~criminal, illegal and unjustified aggression in Ukraine;

Amendment 6 #

Draft opinion
Paragraph 1

1. Underlines the exceptionally uncertain EU economic and social outlook resulting from the lasting impact of the COVID-19 pandemic and the consequences of the war against Ukraine;

Amendment 7 #

Draft opinion
Paragraph 2

2. Welcomes the robustness of the 2. labour market; highlights the stabilising effect of national short-time work schemes supported by the European instrument for temporary support to mitigate unemployment risks in an emergency (SURE); welcomes the fact that the recovery and resilience facility is mitigating those consequences and contributing to the Union’s competitive sustainability the just transition transition and digitization; stresses the importance that reforms and investments under the Recovery and Resilience Plans meet the climate targets of the regulation and are in full respect of the “do no significant harm” principle and contribute to reaching the 2030 national climate and energy and to achieve climate neutrality by 2050 the latest; stresses that its successful implementation requires the completion of milestones and targets and the no regression in the achievements, in particular compliance with the rule of law and the general regime of conditionality, to be monitored transparently and thoroughly; welcomes the Commission’s proposal to include a REPowerEU chapter in the national recovery and resilience plans; insists that the financing of REPowerEU must not divert resources away from other EU priorities. Calls for a swift implementation of RepowerEU amendment of the RRF regulation and in particular to speed up investments in reneweables and energy efficiency to decrease dependence on fossil fuels as fast as possible;

Amendment 8 #