29 Amendments of Eero HEINÄLUOMA related to 2020/2075(INI)
Amendment 21 #
Motion for a resolution
Recital A (new)
Recital A (new)
A. whereas the challenge of the dual transformation (climate protection and digitalisation) requires additional annual public investment in the three digit billion range, which cannot be provided for under current fiscal policy; whereas in both public and private sector investment was already clearly insufficient before the crisis, despite historically low interest rates;
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 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 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 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 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 113 #
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; calls however for strict selectivity and to focus the public support only towards corporates viable in the long run, in light of the EU green and digital agenda;
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 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 181 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Stresses that debt service costs are expected to remain low for the foreseeable future 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 possible to sustain and progressively reduce high debt levels; despite this is very concerned about the overall high level of debt in the EU as a whole and in some MS in particular and the lack of effective economic growth over the last decade in the EU in general and in some MS in particular;
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 251 #
Motion for a resolution
Paragraph 16 b (new)
Paragraph 16 b (new)
16b. Notes that while the EU’s macroeconomic framework is build up around the concept of GDP, a reform should move away from only using GDP as a key indicator and instead put factors such as economic equality and sustainability of the economy at the centre;
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 286 #
Motion for a resolution
Paragraph 21
Paragraph 21
21. Proposes, in line with the EFB, ‘ onethe adoption of a general escape clause, triggered based on independent economic judgement’ proposed by the Commission supported by an opinion based on independent economic judgement in order to reduce complexity and to preserve the ability to act in case of unforeseeable circumstances;
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 312 #
Motion for a resolution
Paragraph 23
Paragraph 23
23. Stresses that governments’ revenues are essential to guarantee the sustainability of public finances; as well as to finance the post-pandemic recovery, restoring the EU's sustainable competitiveness and to support the just transition to a sustainable economy; considers it therefore necessary to subject the level of taxes and duties in the Member States to greater European coordination inter alia to avoid competition to lower taxes; believes that Member States must ensure through their tax policies that there is no reduction in government revenues if debt rules are not respected; recalls that tax evasion and tax avoidance at EU level amount to up to EUR 160-190 billion each year, constituting missing revenues for the treasuries; therefore, calls on the Member States to take action to tackle tax fraud, tax avoidance, and tax evasion, as well as money laundering;
Amendment 313 #
Motion for a resolution
Paragraph 23
Paragraph 23
23. Stresses that governments’ revenues are essential to guarantee the sustainability of public finances; calls on the Member States to take action to tackle tax fraud, tax avoidance, and tax evasion, as well as money laundering; looks forward to a very ambitious EC proposal to tackle AML, in line with the priorities set by the EP resolution of July 2020; stresses that any further macro-economic reform can only be successful in the long run, provided existing tax loopholes are properly tackled in the Member States; it is therefore essential that progress around that is assessed in the country specific path as outlined in par 19, and should be a key element in assessing the exemptions from the expenditure rule per Member State;
Amendment 322 #
Motion for a resolution
Paragraph 23 a (new)
Paragraph 23 a (new)
23a. Calls for the creation of an Anti- Tax Haven Pact to be integrated in the European semester, with the effect that the EU Commission assesses the tax rules of the Member States on an annual basis and gives country specific recommendations for how to reform the tax rules in the case a Member State facilitates harmful tax practices;