52 Amendments of Fernando NAVARRETE ROJAS related to 2024/2112(INI)
Amendment 12 #
Motion for a resolution
Citation 17 a (new)
Citation 17 a (new)
– having regard to the Commission communication of 17 December 2024 entitled ‘Alert Mechanism Report 2025’ (COM (2024)702),
Amendment 13 #
Motion for a resolution
Citation 17 b (new)
Citation 17 b (new)
– having regard to the Commission recommendation of 17 December 2024 for a Council recommendation on the economic policy of the euro area (COM(2024)704),
Amendment 14 #
Motion for a resolution
Citation 17 d (new)
Citation 17 d (new)
– having regard to the Proposal for a Joint Employment Report from the Commission and the Council of 17 December 2024 (COM(2024)701),
Amendment 23 #
Motion for a resolution
Citation 27 a (new)
Citation 27 a (new)
– having regard to the Special Report 13/2024 of the European Court of Auditors entitled ‘Absorption of funds from the Recovery and Resilience Facility – Progressing with delays and risks remain regarding the completion of measures and therefore the achievement of RRF objectives’,
Amendment 25 #
Motion for a resolution
Citation 27 b (new)
Citation 27 b (new)
– having regard to the Monetary Dialogue Papers of November 2024 entitled 'The New Economic Governance Framework: Implications for Monetary Policy',
Amendment 26 #
Motion for a resolution
Citation 27 c (new)
Citation 27 c (new)
– having regard to National Bureau of Economic Research working paper 15438 of October 2009 entitled ‘Large Changes in Fiscal Policy: Taxes versus Spending,’
Amendment 27 #
Motion for a resolution
Citation 27 d (new)
Citation 27 d (new)
– - having regard to the in-depth analysis of the Economic Governance and EMU Scrutiny Unit of December 2024 entitled ‘Economic Dialogue with the European Commission on EU Fiscal Surveillance’
Amendment 41 #
Motion for a resolution
Recital A a (new)
Recital A a (new)
Aa. whereas the European Semester aims to ensure economic growth, job creation, macroeconomic stability and sound public finances throughout the entire European Union;
Amendment 52 #
Motion for a resolution
Recital B
Recital B
B. whereas reference values of up to 3 % of government deficit to GDP and 60 % of government debt to GDP are defined by the TFEU; whereas the EU’s headline deficit and government debt-to-GDP ratio remain above the reference values;
Amendment 53 #
Motion for a resolution
Recital B
Recital B
B. whereas reference values of up to 3 % of government deficit and 60 % of public debt to GDP are defined by the TFEU; whereas the EU’s headline deficit and government debt-to-GDP ratio remain above the reference values;
Amendment 62 #
Motion for a resolution
Recital E a (new)
Recital E a (new)
Ea. whereas the economic outlook for the Union remains highly uncertain and the risk of future events or situations negatively affecting the economy is increasing; whereas Russia's aggression in Ukraine and conflicts in the Middle East are aggravating geopolitical risks and demonstrate Europe's energy vulnerability; whereas a rise in protectionist measures by trading partners may affect world trade, with negative repercussions for our economy;
Amendment 64 #
Motion for a resolution
Recital E a (new)
Recital E a (new)
E a. whereas the EU urgently needs to tackle the obstacles to competitiveness; whereas the European Semester will continue to focus on providing guidance on the policy action needed to address economic challenges, with the aim of improving the EU’s competitiveness;
Amendment 74 #
Motion for a resolution
Recital E b (new)
Recital E b (new)
E b. whereas fiscal stability is a precondition for both sustainable high social standards in the EU and its competitiveness;
Amendment 101 #
Motion for a resolution
Paragraph 2
Paragraph 2
2. Believes that overcoming competitive and geopolitical challenges will require the transfer of some national expenditure to the EU level in certain policy areas related to the provision of European public goods to increase the efficiency of overall public expenditure, by making use of economies of scale, thus reducing the cost for taxpayers; welcomes the Union’s commitment to increasing its spending efficiency and investments in overall defence capabilities to match its needs in the context of rising threats and security challenges;
Amendment 114 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Highlights the fact that a consistent and comprehensivehorizontal industrial policy is vital to increase investments in the EU’s innovation capacity, while preserving competitiveness and the integrity of the single market;
Amendment 118 #
Motion for a resolution
Paragraph 3
Paragraph 3
3. Highlights the fact that a consistent and comprehensive industrial policy is vital to increase investments in the EU’s innovation capacity, while preserving competitiveness and the integrity of the single market; welcomes the tax incentives for private research and development, which can contribute to increasing an economy's overall spending on research and development;
Amendment 121 #
Motion for a resolution
Paragraph 3 a (new)
Paragraph 3 a (new)
3 a. Welcomes the Commission’s recommendation on the economic policy of the euro area, urging Member States to enhance competitiveness and foster productivity through improved access to funding for businesses, reduced administrative burdens, and public and private investment in areas of common priorities;
Amendment 122 #
Motion for a resolution
Paragraph 3 b (new)
Paragraph 3 b (new)
3 b. Welcomes the Commission's recommendation that, when defining fiscal strategies, euro area Member States should aim to improve the quality and efficiency of expenditure and revenue measures, and calls on them to adopt a judicious approach to fiscal adjustment, carefully designed to minimize detrimental impacts on growth; notes especially the more detrimental effect on growth of tax increases1a ; welcomes the 'Draghi report' conclusion that a coordinated reduction of labour income taxation for low-to middle-income workers is needed to promote EU competitiveness; _________________ 1a Alesina, Alberto, and Silvia Ardagna. Large changes in fiscal policy: taxes versus spending. Tax policy and the economy 24.1(2010): 35–68.
Amendment 125 #
Motion for a resolution
Paragraph 3 c (new)
Paragraph 3 c (new)
3 c. Welcomes the recommendations of the 'Draghi report' that EU competitiveness will require a strict set of fiscal rules; highlights the need to create fiscal buffers to address fiscal sustainability challenges, ensuring sufficient resources for investment and, absorb potential future shocks;
Amendment 129 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Notes that, according to the Commission’s autumn 2024 economic forecast, EU GDP is expected to grow by 0.9 % (0.8 % in the euro area) in 2024 and, by 1.5 % (1.3 % in the euro area) in 2025 and by 1.8% (1.6% in the euro area) in 2026; notes that the economic outlook for the EU remains highly uncertain, with risks largely tilted to the updownside;
Amendment 131 #
Motion for a resolution
Paragraph 4
Paragraph 4
4. Notes that, according to the Commission’s autumn 2024 economic forecast, EU GDP is expected to grow by 0.9 % (0.8 % in the euro area) in 2024 and by 1.5 % (1.3 % in the euro area) in 2025; notes that the economic outlook for the EU remains highly uncertain, with risks largely tilted to the upsidedownside; notes that for the EU, the figure is 0.1 percentage points below the economic growth figure in the Spring 2024 report, while the situation has remained unchanged in the euro area; recalls that these figures reflect a gradual recovery, but also limited economic expansion compared to previous periods;
Amendment 136 #
Motion for a resolution
Paragraph 4 a (new)
Paragraph 4 a (new)
4 a. Is concerned that, according to the Commission's 2024 autumn forecast, investment in the EU is projected to contract by 1.6% in 2024; calls on the Commission to propose measures to improve the business environment and legal certainty to increase investment;
Amendment 141 #
Motion for a resolution
Paragraph 5
Paragraph 5
5. Stresses that high debt levels undermine economic stability and the capacity to respond to crises; is concerned that the public debt ratio is projected to increase in 2025 (to 83.0 % in the EU and 89.6 % in the euro area) and in 20256 (to 83.4% in the EU and 90% in the euro area), up from the levels in 2024 (82.4 % for the EU and 89.1 % for the euro area); is concerned that general government debt is projected to increase in the Euro area from pre-pandemic levels from 83.6% in 2019 to 90% in 2026 and in the EU from 77.4% in 2019 to 83.4% in 2026, when the output gap will be at 0% of potential GDP in the Euro area and -0.1% of potential GDP in the EU; highlights that countries with higher deficits are expected to see rising debt-to-GDP ratios; regrets that eleven euro area Member States would still have debt ratios above 60%, with five remaining above 100%;
Amendment 147 #
Motion for a resolution
Paragraph 5 b (new)
Paragraph 5 b (new)
5b. Stresses that 10 EU Member States are expected to post a deficit of more than 3% of GDP in 2024; points out that this number will remain stable in 2025 and that in 2026 most Member States are forecast to have budgetary positions clearly lower than in 2019, with nine of them still posting deficits of above 3%;
Amendment 154 #
Motion for a resolution
Paragraph 6 a (new)
Paragraph 6 a (new)
6a. Points out that growth in the EU is expected to rise to up to 1.5% in 2025 driven by rising consumption and to 1.3% in the euro area, followed by 1.8% in the EU and 1.6% in the euro area in 2026; recalls that in the second half of the year the European Union and the euro area grew by 0.3%, despite the cooling seen in large economies; adds that this means a slower recovery than anticipated and underlines the economic difficulties Europe is experiencing;
Amendment 168 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. Notes that, according to the Commission’s 20245 Alert Mechanism Report identifies macroeconomic imbalances in 12 Member Stat, in-depth Reviews (IDRs) will be prepared in 2025 for the nine countries that were identified as experiencing imbalances or excessive imbalances in 2024 while another IDR should be undertaken for another Member State, as it presents particular risks of newly emerging imbalances;
Amendment 170 #
Motion for a resolution
Paragraph 7
Paragraph 7
7. NotDeplores that the Commission’s 2024 Alert Mechanism Report identifies macroeconomic imbalances in 12 Member States;
Amendment 176 #
Motion for a resolution
Paragraph 8
Paragraph 8
8. RecallsPoints out that the reform aims to make the framework simpler, more transparent and effective, with greater national ownership and better enforcement; recalls, furthermore, that it aims to strengthen fiscal sustainability through gradual and tailor-made adjustments complemented by reforms and investments and to promote countercyclical fiscal policies;
Amendment 197 #
Motion for a resolution
Paragraph 9
Paragraph 9
9. Deplores the low level of enforcement of the fiscal rules framework in the past; stresses that it is essential for the new framework to ensure the equal treatment of the Member States; affirms that a successful and credible framework relies heavily on its rigorous implementation; calls on the Commission to rigorously implement it from the outset;
Amendment 205 #
Motion for a resolution
Paragraph 10
Paragraph 10
10. Affirms that a renewed focus on medium-term net expenditure will require comprehensive reforms of national budgetary planning procedures across the Member States; encourages Member States to adapt their national fiscal stability rules to the new EU fiscal rules;
Amendment 221 #
Motion for a resolution
Paragraph 11 a (new)
Paragraph 11 a (new)
11 a. Acknowledges the positive evaluation of 20 out of the 21 national medium-term fiscal-structural plans reviewed; calls on the Member States that have not yet submitted their Draft Budgetary Plans, especially those not engaged in electoral processes or new government formation, to do so as soon as possible; notes that in five Member States, significant and unjustified deviations are observed in macroeconomic assumptions related to potential GDP and/or the GDP deflator; regrets that such deviations might impact the annual expenditure growth ceiling and lead to backloading;
Amendment 222 #
Motion for a resolution
Paragraph 11 a (new)
Paragraph 11 a (new)
11a. Deplores the fact that some countries have submitted reformed fiscal plans to the European Commission without having debated them in national parliaments or consulted stakeholders; recalls that this is a breach of Regulation (EU) 2024/1263 on the effective coordination of economic policies and on multilateral budgetary surveillance; calls on the Commission to comply with the Regulation and respect the sovereignty of these countries' people;
Amendment 224 #
Motion for a resolution
Paragraph 11 b (new)
Paragraph 11 b (new)
11b. Deplores the fact that some of the medium-term fiscal-structural plans submitted backload the effort to the last four years (2028-2031); recalls that structural plans have to present realistic and consistent efforts over a long period of time, thus avoiding compromising future sustainability;
Amendment 225 #
Motion for a resolution
Paragraph 11 c (new)
Paragraph 11 c (new)
11c. Points out that some countries have yet to approve their national budgetary plans; recalls that national budget plans must be approved in a manner in accordance with the countries' fiscal reforms in order to be able to ascertain whether fiscal policies are in line with the recommendations; calls on the Commission to continue to ask these countries to submit their national budgetary plans;
Amendment 227 #
Motion for a resolution
Paragraph 12
Paragraph 12
12. Notes that 18 Member States have proposed deviations from the expenditure path determined by the Commission, resulting, in some11 cases, in higher average expenditure growth; laments the fact that these deviations are justified on the basis of significant discrepancies between Member States’ economic assumptions and those of the Commission; calls on the Commission to ensure that economic arguments underpinning the new paths proposed by Member States are sound and data-driven; regrets that Member States are delaying thei properly monitor fdiscal adjustments to the end of the period, coinciding with slower GDP growth; calls repancies on assumptions along the Commission to prevent procyclical policiesadjustment period;
Amendment 234 #
Motion for a resolution
Paragraph 12 a (new)
Paragraph 12 a (new)
12 a. Regrets that some Member States are delaying their fiscal adjustments to the end of the period, coinciding with slower projected GDP potential growth; notes that in three Member States, the Commission acknowledges a concentration of fiscal adjustment towards the end of the period; calls on the Commission to ensure that such concentration of the adjustment only takes place under the requirements set on the regulation and to prevent pro-cyclical policies;
Amendment 236 #
Motion for a resolution
Paragraph 13
Paragraph 13
13. Laments the fact that only seven Member States have sought an opinion from their relevant independent fiscal institution; notes with concern that some independent fiscal institutions provided a negative opinion of the fiscal plan after its submission to the Commission for approval; regrets that nine Member States did not meet their obligation to conduct political consultations with regional authorities and relevant stakeholders prior to submitting their national plans; further laments the fact that severalten Member States have not involved their national parliaments in the approval process for the plans and have not reported whether the required consultations with national parliaments took place; recalls the requirement that Member States have to report in their plans whether political consultations took place;
Amendment 242 #
Motion for a resolution
Paragraph 14
Paragraph 14
14. Observes that five Member States have requested an extension of the adjustment period; notes that the reforms and investments used to justify this extension rely heavily on reforms already approved under the Recovery and Resilience Facility; believes that some of these reforms do not sufficiently meet the requirement to demonstrate their contribution to potential GDP growth; calls on the Commission to effectively evaluate the impact of agreed investments and reforms on fiscal sustainability and growth;
Amendment 245 #
Motion for a resolution
Paragraph 14 a (new)
Paragraph 14 a (new)
14 a. Regrets the fact that, out of the 17 draft budgetary plans presented, only eight are in line with fiscal recommendations stemming from the national medium-term fiscal-structural plan; notes with concern that seven plans fall short of full compliance, one is at risk of non-compliance, and one is outright non-compliant; is concerned that six Member States have presented draft budgetary plans with annual or cumulative expenditure growth above their prescribed ceilings;
Amendment 264 #
Motion for a resolution
Paragraph 16
Paragraph 16
16. Notes that the implementation of the revised governance framework is expected to lead to a contractionary fiscal stance for the euro area as a whole in 2024 and 2025, which is appropriate in light of the macroeconomic outlook and the need to continue to enhance fiscal sustainability and support the ongoing disinflationary process; notes the Commission projection that the euro area fiscal stance is expected to be slightly contractionary at ½% of GDP in 2024 and ¼% of GDP in 2025; agrees with the contractionary fiscal stance due to i) the suspension of fiscal rules in the period 2020-2023 and the need to restore fiscal stability, ii) the need to create additional fiscal space for future challenges ,and iii) that the fiscal drag will be partly offset by a slight expansion in investment, both financed by national budgets and Recovery and Resilience Facility grants and other EU funds;
Amendment 268 #
Motion for a resolution
Paragraph 16 a (new)
Paragraph 16 a (new)
16 a. Acknowledges the slower-than- expected flow of Recovery and Resilience Facility funds into the real economy1b ; expresses concern that expectations may be overly optimistic, given that by the end of 2023, less than one-third of recovery funds had been utilized by EU Member States, and only about half of the transferred funds had reached final beneficiaries; calls on the Member States to take action, through the implementation of their national Recover and Resilence Plans, to bolster competitiveness, and macroeconomic and financial stability; _________________ 1b Special Report 13/2024 from the European Court of Auditors
Amendment 273 #
Motion for a resolution
Paragraph 17
Paragraph 17
17. Considers that the rigorous application of the fiscal rules, although absolutely necessary, are not by themselves is not a sufficient condition for achieving an optimal fiscal stance at all times; notes that the fiscal stance is still projected to be very heterogeneous across Member States in 2025; calls on the Commission and the Council to propose a mechanism that helps ensure that the cyclical fiscal position for the EU as a whole is at all times appropriate to the macroeconomic outlook;
Amendment 291 #
Motion for a resolution
Subheading 5
Subheading 5
Amendment 303 #
Motion for a resolution
Paragraph 18 a (new)
Paragraph 18 a (new)
18a. Calls for simplification and oversight of the governance of the European Semester with a view to ensuring greater demand and coordination with less bureaucracy;
Amendment 309 #
Motion for a resolution
Paragraph 19
Paragraph 19
19. Recalls the Member States’ obligation to address the relevant CSRs under the European Semester in their national fiscal plans; regrets that the Commission has found unaddressed CSRs in the national fiscal plans;
Amendment 311 #
Motion for a resolution
Paragraph 19 a (new)
Paragraph 19 a (new)
19a. Adds that the European Semester should address the long-term sustainability of some national pension systems, with reforms based on ensuring their sustainability;
Amendment 313 #
Motion for a resolution
Paragraph 19 b (new)
Paragraph 19 b (new)
19b. Applauds the fact that country- specific recommendations include an analysis of the quality of public spending, thereby facilitating the redirection of productive investments and eliminating inefficient expenditures;
Amendment 317 #
Motion for a resolution
Paragraph 20
Paragraph 20
20. Highlights the fact that implementing CSRs on strengthening the fiscal sustainability of public pension systems and the cost-effectiveness of health and long-term care systems in the face of ageing populations should remain a key objective for the Member States; regrets that measures linked to pension reforms continue to show a lower implementation level1c; calls on the Commission to monitor the contribution of reforms linked to the pension system to potential growth and fiscal sustainability; _________________ 1c COMMISSION STAFF WORKING DOCUMENT 2025 Report on the euro area accompanying the document Recommendation for a COUNCIL RECOMMENDATION on the economic policy of the euro area. P.49.
Amendment 322 #
Motion for a resolution
Paragraph 20 – point 2 (new)
Paragraph 20 – point 2 (new)
(2) Recalls that the European Semester of economic policy coordination is the EU-level framework to identify national reform priorities and monitor their implementation. reaffirms that under the Recovery and Resilience Facility the reforms included in national recovery plans and their subsequent addenda must be coherent and address the demands set out in the country- specific recommendations and the general guidelines of the European Semester;
Amendment 323 #
Motion for a resolution
Paragraph 20 – point 3 (new)
Paragraph 20 – point 3 (new)
(3) Calls for the milestones and targets included in national recovery plans, the Operational Agreements and subsequent addenda to undergo an impact assessment to ascertain whether these reforms have truly achieved the objectives for which they were designed and whether they have had the expected impact, as these reforms conditioned the receipt of European funds;
Amendment 324 #
Motion for a resolution
Paragraph 20 – point 4 (new)
Paragraph 20 – point 4 (new)
(4) Recalls that only through rapid, transparent and effective implementation of the funds by the governments of the Member States, compliance with the agreed reforms and the agreed deadlines will these funds have the promised impact on the GDP of the Union and of each of its Member States;
Amendment 325 #
Motion for a resolution
Paragraph 20 – point 5 (new)
Paragraph 20 – point 5 (new)
(5) Recalls that the success of the Recovery and Resilience Facility will not depend on national recovery plans and the projects contained therein, nor on the number of transfers made by the Commission to the Member States, but rather on the rapid and effective deployment of funds to the real economy, productive sectors and businesses;