Background Image
Table of Contents Table of Contents
Previous Page  59 / 145 Next Page
Information
Show Menu
Previous Page 59 / 145 Next Page
Page Background

59

The Eurozone has failed to deliver on the main

goals of the European Union (EU) in terms of

sustainable growth, employment, social pro-

gress, cohesion and stability.

Flaws in the initial design of the single cur-

rency have made the effects of the global eco-

nomic crisis deeper and longer, generating huge

economic costs, social suffering and political

tensions within and between Member States.

Without major reform, aiming at the comple-

tion of the Economic and Monetary Union

(EMU), neither will the crisis be properly over-

come, nor will the EU succeed its necessary

transformation into a democratic, sustainable,

cohesive and competitive growth model, with-

out which it will ultimately fail to safeguard and

reinforce its democratic and social values and

standards in an increasingly competitive and

fast-changing world. To guarantee the EMU’s

sustainability in the long run, the EMU reform

process should also involve re-launching a dy-

namic process of structural convergence

amongst its member countries and regions with-

in an inclusive and competitive Single Market.

This reform of EMU must address its inher-

ent flaws and weaknesses upfront, through

courageous and intelligent political, economic

and social change. Key proposals made by the

Group of Socialists and Democrats include:

– A major qualitative leap in democratic deci-

sion-making processes.

– Closer economic policy coordination and the

development of an EMU economic policy

based on a truly joint approach regarding

the Eurozone’s aggregate fiscal stance –in

particular, to take proper account of the im-

pact of aggregate EMU fiscal policy on the

Eurozone’s domestic demand and its finan-

cial resources– regarded as a necessary con-

dition for an improved macroeconomic poli-

cy mix, to allow for proper aggregate

demand management and clear measures to

reduce social and gender inequalities.

– Balanced monitoring of national current ac-

counts in order to address both deficits and

surpluses through country-specific recom-

mendations in a way that supports structural

convergence.

Completing and rebalancing

the economic and

monetary union

Maria João Rodrigues