Euro-Parliament delays EU economic governance deal
(BRUSSELS) - The European Parliament warned Thursday that legislation to fine states that bust their budgets, meant to be the centrepiece of an EU summit snared by Greece's debt crisis, is not ready to be passed.
Lawmakers in Brussels delayed a deal on six new pieces of legislation aimed at implementing shared rules for eurozone economic governance hours before leaders of the 27 European Union states were to gather in Brussels.
"We wouldn't be able to strengthen it if we stopped the whole process dead," said parliamentary economic affairs spokesman John Schranz after a series of obstacles were identified despite many months of negotiation on more than 2,000 tabled amendments.
"It can still be finalised by the summer," he added, although he said national governments will need to budge on three key demands despite insisting earlier this week they had made their final offer on the package.
Specifically, MEPs want to avoid the route leading to sanctions, and eventual fines for breaching deficit and debt thresholds and commitments, being made more difficult by states looking for ways to wriggle out of the engagements.
"We cannot have the gateway to sanctions strangled at birth," Schranz said.
He also charged governments with backtracking on commitments to order economic reforms both where states have deficits and also where they have surpluses.
For example, he said Germany could be asked to do more to stimulate domestic demand, arguing that its strong export surplus also represents an "imbalance" in terms of the combined eurozone economy.
Finally, governments stand accused by the parliament of watering down wording allowing the assembly to "invite" finance ministers to appear before the chamber and explain their errant ways.
Intensive negotiations will continue over coming days, with the parliament indicating it could vote on a package without those loopholes on July 6.