European Parliament resolution on the Stability and Growth Pact and the outcome of the informal Ecofin meeting of 22/23 September 2001 in Liège
Date: 2001-10-04
Institutions: European Parliament
Subjects: budgetary equilibrium, coordination of EMU policies, international monetary system, national budget, stability pact

C 87 E/220

Official Journal of the European Communities

EN

11.4.2002

Thursday 4 October 2001

5. Stability and Growth Pact (cid:19) Informal Ecofin meeting

B5-0602 and 0603/2001

European Parliament resolution on the Stability and Growth Pact and the outcome of the informal
Ecofin meeting of 22/23 September 2001 in Liège

The European Parliament,

(cid:1) having regard to the informal Ecofin meeting of 22/23 September 2001 in Liège,

(cid:1) having regard to the European Council resolution of 17 June 1997 on the Stability and Growth
Pact (1) and to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the sur-
veillance of budgetary positions and the surveillance and coordination of economic policies (2),

A. whereas the Stability and Growth Pact (SPG) was agreed in Dublin in 1996 and has been in force since
1997, with the objective of sound government finances as a means of strengthening the conditions for
price stability and strong sustainable growth,

B. whereas monetary stability is of the utmost importance for the smooth running of the social market
economy, for achieving high growth with a fair distribution of wealth amongst the Union’s citizens,
and for ensuring the long-term sustainability of the economy,

C. whereas the power of economic decision-making is now shared between the Member States and the
European Union, which could possibly lead to a situation where individual Member States carry out
policies having an adverse effect on monetary stability,

D. having regard to the high degree of sensitivity of the financial sector during the period of introduction
of the euro, especially during the phase of the changeover from national currency units to euro notes
and coins,

E. whereas the general economic outlook is less positive than in the last few years and the current

economic situation has been worsened by the terrorist attacks against the United States,

Recalls that the Stability and Growth Pact is aimed at strengthening the budgetary situation on a

1.
medium-term basis and has pioneered budgetary coordination among Member States;

Asks the Council to reiterate its commitment to maintaining the Stability and Growth Pact in its

2.
present form and to continuing fully to implement its principles;

Approves the general goal of balancing public accounts by 2002 or by 2004 set in the respective

3.
national stability/convergence programmes adopted by all Member States;

4.
Points out that the Stability and Growth Pact gives a certain leeway for adjustments to the business
cycle as well as to external shocks; stresses that countries that have reached the goal of balance or even
surplus can let automatic stabilisers play fully, while others have less room of manoeuvre;

5.
Urges the Member States to draw up their budgets on the basis of reasonable assumptions concern-
ing economic growth and to refrain from making use of one-off measures which artificially deflate the
budget deficit and distort perceptions of the real budgetary situation;

Calls on the Member States to establish the stability programmes on a realistic basis, taking into

6.
account the possibility of changes in fundamental assumptions;

(1) OJ C 236, 2.8.1997, p. 1.
(2) OJ L 209, 2.8.1997, p. 1.

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Official Journal of the European Communities

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Thursday 4 October 2001

Calls on the Commission and the Council to treat small and large Member States equally when

7.
assessing the enforcement of national stability programmes;

Takes the view that, for the future, it would be desirable for the ECB, the Commission and Ecofin to
8.
agree on a common definition of ‘underlying budget balance’, in the context of establishing the stability
programmes, as this could serve as an additional analytical tool and help to further increase discipline;

9.
Urges finance ministers to improve monitoring of fiscal positions in the framework of preparing
Broad Economic Policy Guidelines in order to improve coordination of euro-zone policies and their appli-
cation in the stability programmes;

10.
Notes the outcome of the informal Ecofin meeting of 22/23 September 2001 as relayed by the
Belgian Presidency and awaits the formalising of decisions at the next regular meeting of the Ecofin Coun-
cil on 16 October 2001;

11. Welcomes the coordinated move by the US Federal Reserve Bank and the European Central Bank to
lower interest rates after the attacks in the United States;

12.
Approves the commitment given by the Ecofin ministers, the President of the ECB and the Com-
mission to adopt rapidly the proposal for a directive on the prevention of the use of the financial system
for the purpose of money laundering and the framework decision on the execution of orders freezing
assets or evidence, with its scope extended to include terrorist-related crimes;

13. Wishes the EU to set up a special task force, composed of specialists from all the Member States
and candidate countries, which should present a catalogue of urgent measures to be taken in the different
European countries in order effectively to dry up the financial resources of international terrorism on this
continent;

14.
Takes the view that stability in the monetary system needs to be increased and notes that Chile has
been successful in this respect by requiring non-interest bearing deposits to match foreign capital on entry
in order to promote longer maturities of external obligations; furthermore, calls for more transparency in
the international financial system and for a tightening of the Basel rules;

Instructs its President to forward this resolution to the Council, the Commission, the European

15.
Central Bank and the governments and parliaments of the Member States.

6. Television without frontiers

A5-0286/2001

European Parliament resolution on the third report of the Commission to the Council, the Euro-
pean Parliament and the Economic and Social Committee on the application of Directive 89/552/
EEC ‘Television without Frontiers’ (COM(2001) 9 (cid:19) C5-0190/2001 (cid:19) 2001/2086 (COS))

The European Parliament,

(cid:1) having regard to the report from the Commission (COM(2001) 9 (cid:1) C5-0190/2001),

(cid:1) having regard to Directive 97/36/EC of the European Parliament and of the Council of 30 June 1997
amending Council Directive 89/552/EEC on the coordination of certain provisions laid down by law,
regulation or administrative action in Member States concerning the pursuit of television broadcasting
activities (‘Television without Frontiers’) (1),

(cid:1) having regard to the fourth communication from the Commission on the application of Articles 4 and
5 of Directive 89/552/EEC ‘Television without Frontiers’ for the period 1997/1998 (COM(2000) 442),

(1) OJ L 202, 30.7.1997, p. 60.