A4-0264/98

Resolution on the Commission communication on the detailed provisions concerning the composition of the Economic and Financial Committee accompanied by a proposal for a Council decision on the detailed provisions concerning the composition of the Economic and Financial Committee (COM(98)0110 - C4-0222/98)

The European Parliament,

- having regard to the Commission communication accompanied by a proposal for a Council decision on the detailed provisions concerning the composition of the Economic and Financial Committee COM(98)0110 - C4-0222/98 ((OJ C 125, 23.4.1998, p. 17.)),

- having regard to Article 109c(3) of the EC Treaty,

- having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies ((OJ L 209, 2.8.1997, p. 1.)),

- having regard to Council Regulation (EC) No 1467/97 of 7 July 1997 on speeding up and clarifying the implementation of the excessive deficit procedure ((OJ L 209, 2.8.1997, p. 6.)),

- having regard to the resolution of the European Council on the Stability and Growth Pact (Amsterdam, 17 June 1997) ((OJ C 236, 2.8.1997, p. 1.)),

- having regard to the resolution of the European Council on growth and employment (Amsterdam, 16 June 1997) ((OJ C 236, 2.8.1997, p. 3.)),

- having regard to its resolution of 4 December 1997 on economic policy coordination in stage 3 of EMU ((OJ C 388, 21.12.1997, p. 36.)),

- having regard to the resolution of the European Council of 13 December 1997 on economic policy coordination in stage 3 of EMU and on Treaty Articles 109 and 109b of the EC Treaty ((OJ C 35, 2.2.1998, p. 1.)),

- having regard to the provisions adopted by the European Council of 13 December 1997 enabling the ministers of the States participating in the euro area to meet informally among themselves to discuss issues connected with their shared specific responsibilities for the single currency,

- having regard to its resolution of 2 April 1998 on democratic accountability in the third phase of EMU ((Minutes of 2.4.1998, Part II, Item 9.)),

- having regard to the report of the Committee on Economic and Monetary Affairs and Industrial Policy (A4-0264/98),

A. having regard to the decisive role played by the Monetary Committee in preparing decisions taken by the Ecofin Council and, in general, in all the preliminary work of the Ecofin Council with regard to economic and monetary union,

B. having regard to the importance of the tasks entrusted to the Economic and Financial Committee, even though they follow on from those currently carried out by the Monetary Committee (the general task of preparing the work of the Council, keeping under review the economic and financial situation of the Member States and of the Community, financial relations with third countries and international institutions, and movements of capital and freedom of payments), and of its prerogative of delivering opinions on its own initiative for submission to the Council and the Commission,

C. whereas the Economic and Financial Committee which will succeed the Monetary Committee at the beginning of the third stage of economic and monetary union will have substantially wider powers in relation to the Ecofin Council,

D. having regard, moreover, to the key position of the Ecofin Council, which was reaffirmed by the Luxembourg European Council, at the centre of the economic coordination and decision-making process, and the vital contribution of the Economic and Financial Committee to the preparation of the work of the Council, particularly in preparing the decisions provided for in the context of multilateral surveillance, the broad guidelines for economic policies and the excessive deficit procedure,

E. whereas the European Parliament and its competent committee must therefore pay particular attention to the functioning and activities of the Economic and Financial Committee,

F. whereas the composition of the Economic and Financial Committee may colour the decisions to be taken by the Ecofin Council, particularly in the event of inadequate representation of persons who are involved in formulating national economic policies,

G. whereas this central position of the Economic and Financial Committee in the process of multilateral surveillance and coordination of the economic policies of the Member States and the Community must also prompt the European Parliament to pursue an ongoing dialogue with this body via its competent committee, without prejudice to its relations with the Ecofin Council, which remains its sole institutional partner in this area,

H. whereas the regular contacts that have been developed between its Subcommittee on Monetary Affairs and the Monetary Committee accordingly provide a favourable basis and whereas these relations should be widened and deepened with its successor,

I. whereas, finally, the prominence given to the role and importance of the Economic and Financial Committee once again raises the problem of the conditions for participation by the European Parliament in the process of economic and monetary union, and points to the need for clarifications from the Commission and the Council regarding the use of the various instruments and procedures for multilateral surveillance and coordination of economic policies, the timing thereof and the role of the bodies concerned, depending on the nature of the issues to be dealt with,

1. Expresses its regret, in the first place, that the European Parliament is not even being consulted about the detailed provisions concerning the composition of the Economic and Financial Committee, but merely informed thereof;

2. Points out that Article 109c(2) of the EC Treaty, which establishes the Economic and Financial Committee intended to replace the Monetary Committee at the start of the third stage, permits the European Central Bank to be represented by no more than two members, whereas no member of the European Monetary Institute was a member of the Monetary Committee;

3. Notes that in its resolution of 13 December 1997 the European Council, in referring to the composition of the Economic and Financial Committee, endorsed the argument put forward by national central bankers regarding the importance of maintaining continuity between the Monetary Committee and the Economic and Financial Committee in terms of membership of the representatives of the Member States, given the effectiveness that the former had demonstrated vis-à-vis the Council during the second stage of EMU;

4. Points out, furthermore, that in that same resolution the European Council made no explicit reference to the number of members of the committee per institution;

5. Approves the fact that the Commission has not specified which administration is to be represented on the committee and points out, in this connection, the importance of the choice of administrations to be represented, in terms of the content of the opinions which will be delivered by the Economic and Financial Committee;

6. Acknowledges that the position taken by the European Council and the Commission proposal enable the national central banks of States standing outside the single currency, which are not represented by the two members appointed by the ECB, to belong to the Economic and Financial Committee;

7. Considers nevertheless that different arrangements should apply for the States belonging to the euro area;

8. Notes also that the presence of national central bankers of countries belonging to the euro area on the Economic and Financial Committee gives it a more marked national character, instead of favouring its development towards a structure with a more Community dimension;

9. Believes that the composition should be such as to maintain a balance between the monetary and economic aspects of EMU;

10. Considers that, where the representatives of national administrations are concerned, the Member States should appoint members and alternate members who have both economic and financial expertise;

11. Proposes that the Member States should use the alternate members to ensure participation, when this is justified by the committee's agenda, by senior officials with competence in the fields of taxation, the budget and economic forecasting;

12. Wonders about the way in which the Economic and Financial Committee will be able to operate, on the basis of its current composition, when it is called upon to prepare the work of the Council relating specifically to the euro area;

13. Asks to be informed about the Statute of the Economic and Financial Committee once it has been approved by the Council;

14. Expresses doubts about the capacity of a committee, as presently composed, to be a forum for dialogue concerning coordination of economic policies favourable to growth and employment;

15. Wishes, in connection with the coordination of economic policies, the chairman of the Economic and Financial Committee to appear before its competent committee on a quarterly basis, in the same way as the competent Commissioner and the Executive Board of the European Central Bank;

16. Proposes that the Economic and Financial Committee should take over the responsibilities of the Economic Policy Committee which was established on 18 February 1974 to coordinate the short- and medium-term economic policies of the Member States, in view of the very limited role that the latter has been called upon to play in recent years;

17. Calls on the Council and the Commission to submit to it proposals concerning the coordination and dialogue to be established between the Economic and Financial Committee and the Employment Committee;

18. Considers that the capacities of the Commission and the European Parliament with regard to expertise and preparation of European economic scenarios and forecasts should be enhanced;

19. Considers that the coordination of economic policies should be based primarily on the broad guidelines for economic policies, and accordingly regrets that this unique opportunity has not been used for the debate on the national employment plans;

20. Calls for the proposal for a Council Decision to be amended so as to enable it to be reviewed no later than 1 January 2002 once all Member States are participating in economic and monetary union;

21. Invites, accordingly, the Commission, the Economic and Financial Committee and the ECB to report to it no later than 1 July 2001 on the state of interinstitutional relations in the context of EMU since the start of the third stage and to submit proposals regarding improvements to be made to the system;

22. Instructs its President to forward this resolution to the Commission, the Council, the European Central Bank, the Monetary Committee and the governments of the Member States.