The conclusions of the European Council Summit in Brussels today did not take any concrete steps to find a long-term solution to the economic and financial crisis, according to the Socialists and Democrats in the European Parliament.

 

During the summit, political leaders adopted the so-called 'Fiscal Pact' which brings in stricter budgetary discipline and greater co-ordination of economic policies. The pact has only been signed by 25 member states, with the UK and Czech Republic deciding to stay out. The pact needs to be ratified by 12 EU countries and is expected to enter into force in early 2013. 

 

Commenting on the Fiscal Pact, Hannes Swoboda, S&D Group Leader, said: "We have been clear from the start that the Fiscal Pact cannot be the answer to the crisis. This Pact calls for stricter austerity instead of coming up with substantial measures for growth and employment. In addition, it creates an additional mechanism outside the EU institutions and divides our Union by accepting an entity with only 25 members. 

 

"As representatives of European citizens our focus was on reducing the damage of this pact and introducing concrete measures to help the people. I am therefore grateful that the EU Council has taken the decision to step up its fight against tax evasion and to submit a report by June 2012 on this important matter – which could result in savings of up to €1 trillion according to a study commissioned by the S&D Group. (See below)

 

"The latest alarming figures on the high rate of youth unemployment in Europe require action from us. Europe needs to wake up and take practical action to get young people integrated into the labour market. It is unacceptable that the Fiscal Pact comes up with harsh sanctions for violations of budgetary discipline but only with guidelines and recommendations on action on youth unemployment."

 

 

Other decisions that have been taken at the Summit relate to Serbia being granted the status as a candidate country and progress being made on the accession of Bulgaria and Romania to the Schengen area.

Commenting on these decisions, Hannes Swoboda said: "It is important that Serbia has been granted candidate status. It is very positive that the discussions with Romania around this in recent days have reached this outcome.  Now the Serbian people will have the chance to make progress towards joining the EU."

 

 

Finally, Heads of State and Government have re-elected Herman Van Rompuy as President of the European Council. Responding to his election, Hannes Swoboda said: "In his second term in office we expect more from President Van Rompuy than just being Secretary General of the Merkozy Team.  He needs to represent the entire EU and convince EU leaders to tackle the real problems such as youth unemployment."

 

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  Closing the European Tax Gap. A report for the S&D Group by Richard Murphy FCA Director, Tax Research UK   EN

  'Closing the European Tax Gap' and re-launching the economy and job creation - an analysis of the key findings   EN

Associated media

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