47 Amendments of Pedro SILVA PEREIRA related to 2020/2075(INI)
Amendment 24 #
A. whereas over the past 30 years the economic governance framework has undergone a number of changes to resolve its design and implementation flaws and adapt it to new economic challenges;
Amendment 25 #
Motion for a resolution
Recital B (new)
Recital B (new)
B. whereas in the aftermath of the Global Financial Crisis, the successive reforms of the EMU focused on risk reduction but failed to introduce risk- sharing elements;
Amendment 26 #
Motion for a resolution
Recital C (new)
Recital C (new)
C. whereas in 2015 the European Commission (EC) adopted guidance on the best use of the flexibility in the rules of the SGP strengthening the link between structural reforms, investment and fiscal responsibility;
Amendment 27 #
Motion for a resolution
Recital D (new)
Recital D (new)
D. whereas the current governance framework presents conceptual and practical weaknesses that lead to rules overly complex, weak enforcement, lack of ownership and of incentives to pursue symmetrical counter-cyclical policies and it did not succeed to reduce divergences between in the EU nor to protect or stimulate growth enhancing public investment;
Amendment 28 #
Motion for a resolution
Recital E (new)
Recital E (new)
E. whereas gross public investment was severely cut following the financial and sovereign debt crisis, and in many Member States net public investment is even negative implying that the current fiscal framework leads to too recessive consolidation measures and facilitates the decline of public investment during the periods of fiscal consolidation;
Amendment 29 #
Motion for a resolution
Recital F (new)
Recital F (new)
F. whereas there are significant investment funding gaps that should be addressed: €470 billion a year until 2030 to meet EU environmental objectives 20a; €142billion a year for social infrastructure such as hospitals or schools 21a ; along with €190 billion a year to stabilise the stock of public capital 22a; _________________ 20aEuropean Commission, “SWD(2020) 98 final - Identifying Europe’s recovery needs”, 27.5.2020, p.14-16. 21aThis estimation only cover health and long-term care (EUR 70 billion), education and life-long learnings (EUR 15 billion) and affordable housing (EUR 57 billion). Source: FRANSEN, L., BUFALO, G., REVIGLIO, E., “Boosting Investment in Social Infrastructure in Europe - Report of the High-Level Task Force on Financing Social Infrastructure in Europe”, 2018, 116p. 22aEuropean Commission, “SWD(2020) 98 final - Identifying Europe’s recovery needs”, 27.5.2020, p. 18-20
Amendment 30 #
G. whereas in 2020, the European Commission started a public consultation on the review of effectiveness of economic governance framework which was disrupted by the onset of the COVID-19 pandemic;
Amendment 31 #
Motion for a resolution
Recital H (new)
Recital H (new)
H. whereas the pandemic is causing an unprecedented exogenous shock with large asymmetric impacts, weighting negatively on the EU economic outlook and enlarging divergences between Member States;
Amendment 32 #
Motion for a resolution
Recital I (new)
Recital I (new)
I. whereas the pandemic has amplified pre-existing inequalities and poverty and has demonstrated the importance of European social model and its existing social safety nets;
Amendment 33 #
Motion for a resolution
Recital J (new)
Recital J (new)
J. whereas, in Europe, economic forecasts 23a 24a show a multispeed, incomplete and uneven recovery; whereas the vaccine rollout is accelerating but remain slow, and there are considerable risks of divergences and aggravated inequalities across countries and sectors as well as prospects for scarring; _________________ 23aEuropean Commission Winter 2021 Economic Forecasts show a contraction in 2020 of - 6,3 % of GDP in the EU and with - 6,8 % of GDP in the euro area and GDP growth is expected to recover only slowly in the short-term with 3.7% in 2021 and 3.9% in 2022 in the EU, and3.8% in both years in the euro area. 24aWorld Economic Outlook: Managing Divergent Recoveries, IMF (April 2021)
Amendment 34 #
Motion for a resolution
Recital K (new)
Recital K (new)
K. whereas the discretionary fiscal support differed in size and composition across Member States with a clear positive correlation between fiscal space and the size of policy response leading to an asymmetric response, creating risks of an unequal level playing field in the internal market and further differentiate the speed of recovery;
Amendment 35 #
Motion for a resolution
Recital L (new)
Recital L (new)
L. whereas public debt levels at the beginning of the pandemic were high, the unprecedented economic recession, the unprecedented national fiscal measures taken in response to the pandemic and the need to support a sustainable and inclusive recovery will impact public finances pushing EU debt-to-GDP to a new peak above 100% of GDP;
Amendment 36 #
Motion for a resolution
Recital M (new)
Recital M (new)
M. whereas environmental 25a and social sustainability are interconnected with long-term fiscal sustainability; _________________ 25aExtreme disaster tend to lower economic output (Botzen, Deschenes and Sanders, 2019); IMF forecasts that major weather-related disasters could have a negative impact in real GDP per capita and countries that are better equipped to address major natural disasters could more easily cushion the impact.
Amendment 37 #
Motion for a resolution
Recital N (new)
Recital N (new)
N. whereas the crisis response of the EU 26a has strengthened the EMU and, so far, succeeded to create trust and confidence, tame financial markets volatility; underlines for this effect the importance of the issuance of EU bonds; _________________ 26a Through in particular the Recovery Package and the SURE instrument.
Amendment 98 #
Motion for a resolution
Paragraph 5 a (new)
Paragraph 5 a (new)
5a. Supports policies that are tailored to the stage of the pandemic, the path to the economic recovery and to countries´ individual circumstances;
Amendment 103 #
Motion for a resolution
Paragraph 6
Paragraph 6
6. Calls on the Member States to embed the high-quality fiscal support in credible medium-term frameworks, to ensure where expansionary fiscal measures are needed, these are supported by growth and inclusive measures bearing in mind that emergency measures are temporary, limited and targeted; calls on the Member States to monitor fiscal risks, namely contingent liabilities, as appropriate for instance guarantee programmes, as appropriate; notes that such good public financial management practices would improve transparency and accountability;
Amendment 108 #
Motion for a resolution
Paragraph 6 a (new)
Paragraph 6 a (new)
6a. Points out that for as long as differences in the pace of recovery are economically significant, fiscal policy should limit the scarring and reduce inequalities by supporting those segments of the economy and society that are at a higher risk of divergence; notes that income inequalities are likely to increase notably within young workers, women and low-skilled workers;
Amendment 111 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Welcomes the policy response of governments aimed at avoiding a sharp increase in corporate insolvencies and unemployment; warns that an abrupt and uncoordinated withdrawal of support measures could lead to financial distress and recommends that more general support is replaced gradually by more targeted schemes including solvency measures; further recommends fiscal measures to facilitate job creation and reallocation namely through retraining and reskilling programmes, together with income support as needed;
Amendment 120 #
Motion for a resolution
Paragraph 7 a (new)
Paragraph 7 a (new)
7a. Reiterates the IMF call to consider a temporary COVID-19 recovery contribution levied on high incomes or wealth as well as the need to implement domestic and international tax reforms;
Amendment 121 #
Motion for a resolution
Paragraph 7 b (new)
Paragraph 7 b (new)
7b. Recalls the importance of the swift, responsible and efficient implementation of the Recovery and Resilience Facility to address the EU´s long term challenges by focusing on building a resilient, inclusive and greener economy, by supporting the recovery and by boosting productivity and investment;
Amendment 122 #
Motion for a resolution
Paragraph 7 c (new)
Paragraph 7 c (new)
7c. Highlights that monetary policy has been carrying the main burden of stabilisation in the past years and crisis; notes that the crisis caused by the pandemic showed that monetary policy is not enough for stabilisation purposes and fiscal policy should play an increasing role;
Amendment 138 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. Stresses the importance of complementarity between monetary and fiscal policies to deliver the required support post-COVID-19, the former by preserving favourable financing conditions and the latter by supporting firms, workers and people; considers that the low interest rate environment has implications for fiscal policy; warns against a premature tightening of monetary and fiscal policy;
Amendment 148 #
Motion for a resolution
Paragraph 9
Paragraph 9
9. Underlines that structural factors are likely to keep rates low in the long term; considers that macroeconomic policies should address the factors underlying secular stagnationsuch as ageing, global savings, low inflation and productivity slowdown are likely to keep rates low in the long term and the impact of Covid-19 shocks is likely to accelerate this tendency as precautionary savings are rising further and investment decisions might be delayed; considers that macroeconomic policies should address the factors underlying secular stagnation through high-quality fiscal expansion with durable repercussions on the private-sector savings-investment balance complemented with growth-enhancing reforms;
Amendment 154 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Calls for an appropriate fiscal and monetary policy mix that works together towards achieving the EU’s objectives; considers a credible fiscal framework a necessary requirement for a strong and mutually supporting coordination of fiscal and monetary policies, to avoid that pro- cyclical policies will counteract the stimulus of the recovery programme and in order to ensure improved and transparent governance;
Amendment 180 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Stresses that debt service costs are expected to remain low for the foreseeable future thanks to a large share of debt burden covered by long maturities and sometimes negative yielding bonds, and primary deficits are likely to be offset by favourable interest-growth differentials; further considers that as long as the differentials are negative it is possiblewill ensure the ability to sustain and progressively reduce high debt levels;
Amendment 190 #
Motion for a resolution
Paragraph 12 a (new)
Paragraph 12 a (new)
12a. Stresses that, following the impact of the Covid-19 crisis on the public debt levels, the new fiscal framework must establish a slower pace for debt reduction, thus allowing Member States to build sustainable public finances without implementing austerity measures;
Amendment 200 #
Motion for a resolution
Paragraph 13
Paragraph 13
13. Recalls the importance of growth- enhancing policies and public investment aimed at increasing sustainable growth potential and achieving the EU’s objectives; reiterates that future-oriented investment and expenditure has positive spill overs in the medium-to-long-term debt sustainability;
Amendment 207 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. Stresses the importance of pursuing a broad and transparent DSA in orderebt Sustainability Analysis (DSA) in order to support policymakers´ decision to set an appropriate country-specific path, using innovative tools and techniques such as stress tests and stochastic analysis to better reflect risks to public debt dynamics; (such as interest-growth differentials, debt composition, demographics and climate change) and the quality of public expenditure;
Amendment 240 #
Motion for a resolution
Paragraph 16
Paragraph 16
16. Calls for the renewed fiscal framework to promote sustainability and cyclical stabilisation and to improve the quality of public expenditure through sustainable investments and reforms; calls for well-defined, transparent, simple, flexible and enforceable rules embedded in a credible and democratic framework that takes into account the specificities of Member States, including the different economic structures and geographical constraints, and promote upward economic and social convergence;
Amendment 272 #
Motion for a resolution
Paragraph 19
Paragraph 19
19. Notes that the country-specific path would not be subject to applying any strict formula and the outcome should result from a discussion between each Member State and the Commission, after a consultation with the EFB in the context of the European Semester; considers that the expenditure rule should also include a correction mechanism to remove cyclical items as interest payments and cyclical unemployment benefits;
Amendment 279 #
Motion for a resolution
Paragraph 20
Paragraph 20
20. Underlines that expenditure rules allow for automatic stabilisers to operate and are under the direct control of the government; argues that while potential output growth is unobservable and has to be estimated, it is less likely to be subject to revisions than the output gap; notes that expenditure rules show to be more effective in reducing the procyclicality bias of fiscal policy 28a; _________________ 28aManescu, C., Bova, E. (2021), Effectiveness of national expenditure rules: Evidence from EU member states.
Amendment 301 #
Motion for a resolution
Paragraph 22
Paragraph 22
22. Shares the EFB’s opinion that sustainable growth-enhancing public investments should be exempt from the expenditure rule, in particular those investments that are aligned with the EU’s long-term objectives of the NGEU; calls for a revamped fiscal framework that promotes the increase and stabilisation of growth-enhancing public investment related namely to social resilience, climate change and digitalisation;
Amendment 307 #
Motion for a resolution
Paragraph 22 a (new)
Paragraph 22 a (new)
22a. Reminds that meeting the objectives of the European Green Deal will require targeted and sustained fiscal effort over several decades; recalls that failing to meet these objectives would heighten significant sustainability-related fiscal risks;
Amendment 308 #
Motion for a resolution
Paragraph 22 b (new)
Paragraph 22 b (new)
22b. Stresses the importance that public investment costs are distributed over the entire service-life, similarly to the way corporate investment is treated in corporate accounting;
Amendment 321 #
Motion for a resolution
Paragraph 23 a (new)
Paragraph 23 a (new)
23a. Underlines that a renewed EU fiscal framework should provide fiscal space and internalize the effects of national discretionary fiscal policies while safeguarding sound public finances; stresses that coordination of the fiscal stance is of particular importance for the euro area and calls for the appropriate fiscal tools to properly coordinate national fiscal policies mitigating possible imbalances;
Amendment 332 #
Motion for a resolution
Paragraph 24 a (new)
Paragraph 24 a (new)
24a. Highlights that, in addition to the review of the fiscal framework, further efforts should be taken to improve and complete the Economic and Monetary Union, including the completion of the banking union with a fully-fledged European Deposit Insurance Scheme, an effective capital markets union, a permanent budgetary instrument for the Euro Area, and a more effective cooperation and coordination on tax affairs, notably regarding harmful tax practices and tax competition;
Amendment 352 #
Motion for a resolution
Paragraph 26
Paragraph 26
26. Stresses the importance of the MIP in identifying and taking preventive and corrective actions against emerging imbalances; points out, however, that the potential of this mechanism has not been fully exploited on account of its structural weaknesses notably the asymmetry of the indicators in the Alert Mechanism, indicators lacking a clear prioritization and the lack of clear accountability;
Amendment 369 #
Motion for a resolution
Paragraph 27
Paragraph 27
27. Calls for the MIP to be reformed to make its indicators and recommendations more forward-looking and symmetrical with regard to over- and undershooting target values, and to focus on indicators under the control of policymakers and geared towards reducing intra-euro area imbalances and driving the economic cycle of the eurozone from a consolidated point of view; considers that greater compliance with pared-back recommendations must be achieved and MIP-relevant country-specific recommendations should focus on policy actions that can have a direct impact on imbalances;
Amendment 377 #
Motion for a resolution
Paragraph 28
Paragraph 28
28. Considers that clarity and consistency concerning the interplay between the MIP and the Stability and Growth Pact is key to ensuring that their objectives are achieved; the recommendations to Member States within the MIP framework could be contradictory in some cases with the fiscal policy guidelines based on the application of the Stability and Growth Pact; therefore, it is necessary to improve clarity and consistency concerning the interplay between the MIP and the Stability and Growth Pact and to provide the EU with additional instruments to guarantee a correct aggregate fiscal stance according to the cyclical needs of the eurozone economy as a whole;
Amendment 394 #
Motion for a resolution
Paragraph 30
Paragraph 30
30. Calls for a renewed European Semester as the main economic and social policy coordination framework supporting the EU’s long-standing goals of sustainability and upward convergence with stronger national ownership; calls for a more balanced institutional role of the European Parliament in the European Semester to ensure a more rigorous democratic scrutiny ; demands for the European Parliament’s full involvement in defining the overarching goals and the guidance;, in particular the ones related to the euro area; stresses the importance of a stronger balance in policy coordination between employment and social affairs ministers and finance ministers namely in the euro area.
Amendment 408 #
Motion for a resolution
Paragraph 30 a (new)
Paragraph 30 a (new)
30a. Underlines the importance to clarify the link between each specific governance tool and the objectives to be achieved; calls for better reflecting the existing scoreboards in policy recommendations;
Amendment 409 #
Motion for a resolution
Paragraph 30 b (new)
Paragraph 30 b (new)
30b. Points towards the lack of ownership as one the main weaknesses of the European Semester; notes that the design of this framework must respect a set of long-term objectives and guidance at EU level, reflected in national plans, policy recommendations on a variety of policy objectives which should allow for policy choices properly reflecting national needs and priorities underpinned by an open and inclusive policy dialogue between the EU and national institutions and stakeholders;
Amendment 418 #
Motion for a resolution
Paragraph 32
Paragraph 32
32. Calls for more involvement of national macro prudential authorities and national productivity councils in the MIP process;
Amendment 419 #
Motion for a resolution
Paragraph 32 a (new)
Paragraph 32 a (new)
32a. Underlines the importance of ensuring a proper balance of responsibilities between the different institutions in the implementation of the EU fiscal framework; calls for a higher involvement of the European Parliament when discussing medium to long-term budgetary guidelines; in order to ensure greater transparency and accountability, it should be enhanced the involvement of the national parliaments;
Amendment 420 #
Motion for a resolution
Paragraph 32 b (new)
Paragraph 32 b (new)
32b. Welcomes the significant improvements of the role of Independent Financial Institutions (IFIs) in the budgetary process for enhancing transparency and accountability of fiscal policy through both monitoring and independent analysis; notes that IFIs should incorporate in their work the medium to long-term challenges to the fiscal frameworks; underlines the importance to ensure accountability of these institutions towards the European and national parliaments, as appropriate;
Amendment 435 #
Motion for a resolution
Paragraph 34 a (new)
Paragraph 34 a (new)
34a. Calls on the Commission to further reflect on the design and implementation of Macroeconomic Adjustment Programmes; is firmly convinced that the way macroeconomic adjustment programmes were implemented had serious consequences on the social fabric of the countries, led to permanent losses of output, raised serious doubt of external political interference and presented a lack of national ownership;
Amendment 436 #
Motion for a resolution
Paragraph 34 b (new)
Paragraph 34 b (new)
34b. Calls on the Commission to assess the effectiveness and the added value of post-programme surveillance in those euro area Member States that are no longer subject to a macroeconomic adjustment programme; notes that Member States exiting a macroeconomic adjustment programme are also under enhance surveillance in the European Semester and, where relevant, in-depth reviews can be conducted; considers that this double surveillance does not bring any additional benefits for the process of multilateral surveillance;