EMU Public Finances: we need fiscal consolidation and growth.

Parliament approves Report on public finances in the European Monetary Union 2011-2012

"The economic situation in the EU is worrying. Our economies are not yet out of the crisis and the recession spiral is always lurking. Though GDP growth is expected this year, the short-term prospects remain precarious. The financial crisis is turning into a social crisis. One can see this when one considers that unemployment, for example, has recently reached 11% in the European Union. The situation requires urgent measures. We need to get back to growth again!", said Alfredo Pallone MEP, Rapporteur on the Report 'Public Finances of the EMU - 2011 and 2012', on the sidelines of the vote in plenary today in Strasbourg.

"The progress made in the context of European economic governance is considerable, but we have to do even more. Fiscal consolidation is the first step to start growing again, but this must be done in an intelligent manner, without choking the economy. This is why my Report stresses the need to carry out consolidation based more on reducing unproductive public expenditure rather than increasing taxation. We have to cut all waste and inefficiency while preserving productive expenditure and at the same time fighting tax evasion", said Alfredo Pallone MEP. "But consolidation alone is not enough! Long-term structural measures are needed to boost growth and employment. More attention should be given to labour market policies, business environment and investments."

"Consolidation in growth must be our objective! These two measures are not alternative to one another but rather highly interdependent and interrelated and they should go hand in hand. We must abandon ideological views and act in the interest of European citizens and businesses by ensuring a better life for future generations", concluded Alfredo Pallone MEP.