WRITTEN QUESTION No. 1492/97 by Raimo ILASKIVI to the Commission. Dealing with changing economic circumstances under EMU
Date: 1997-04-30
Institutions: European Parliament, ILASKIVI
Subjects: Economic and Monetary Union, convergence criteria, cyclical fluctuation, economic cycle, economic recession, economic stabilisation, public finance, reflation, unemployment

C 21/60

EN

Official Journal of the European Communities

22. 1. 98

The tasks of the funds relating to the Community internally are specified in various Articles of the Treaty.

The Structural Funds do, however, participate in the financing of cross-border and inter-regional cooperation
programmes with third countries in conjunction with other financial instruments such as PHARE, MEDA and
TACIS.

(98/C 21/148)

WRITTEN QUESTION E-1492/97

by Raimo Ilaskivi (PPE) to the Commission

(30 April 1997)

Subject: Dealing with changing economic circumstances under EMU

Against  the  current  background  of  high  unemployment  in  many  countries,  strict  compliance  with  the
convergence criteria for EMU can easily reduce virtually to zero the scope for national measures to boost the
economy. The single currency will make exchange rate policies a thing of the past, interest rate policies will be
laid down by the joint central bank: these, and many other things, will be facts of life once the third stage of EMU
has come into force. The rules laying down the maximum percentages for the budget deficit and public debt and
the  fines  which  will  be  imposed  should  they  be  exceeded  will  make  an  active  budget  policy  to  deal  with
exceptional national circumstances or requirements impossible.

What measures do the Commission and, at the latter(cid:146)s suggestion, the Council intend to take to ensure that budget
deficits and public debts are considered in the light of all the prevailing circumstances and not just on the basis of
the situation at a given moment, since only in this way can the Member States be guaranteed at least some scope
to  deal  with  changing  economic  circumstances  and,  in  particular,  fight  unemployment?  Only  budget  policy
measures will be possible.

Answer given by Mr de Silguy on behalf of the Commission

(12 June 1997)

The Commission is aware of the importance of taking into account all relevant information, including the phase
of the business cycle, when assessing a Member State(cid:146)s budgetary performance. For this reason, the Treaty and
the stability and growth pact allow a public deficit of 3% of gross domestic product or, in case of exceptional and
temporary  circumstances  such  as  a  severe  recession,  an  even  higher  deficit.  Provided  that  in  normal
circumstances a Member State aims at balanced public finances, this will provide an ample buffer for recession
and  allow  for  countercyclical  budgetary  policies.  Hence,  the  Commission  sees  no  conflict  between  active
budgetary policies and the Treaty(cid:146)s requirement of sound public finances.

(98/C 21/149)

WRITTEN QUESTION E-1495/97

by Antoine-Fran(cid:231)ois Bernardini (PSE) to the Commission

(30 April 1997)

Subject: Fares on the Thalys

A problem has arisen with regard to the Thalys rail service between Paris and Brussels.

Large families have not been able to obtain special reductions on Thalys since the service started on 2 June 1996.
They  are  therefore  forced  to  purchase  tickets  which  offer  far  less  flexibility  and  are  more  expensive.    For
instance, the (cid:145)mini(cid:146) fare is available for only 80 seats for which tickets are put on sale 60 days in advance, and the
(cid:145)loisir(cid:146) fare represents a 36% increase in the fare for a family with three children.

Is it to be concluded that the EEIG responsible for operating the Thalys service is exempt from public service
obligations?

Does the above situation not constitute blatant discrimination and a barrier to the free movement of persons?