European Public Finances: we need fiscal consolidation, reforms for growth and rationalisation of public spending.

The Economic and Monetary Affairs Committee approves the Report on public finances in the European Monetary Union

"The state of public finances in the European Union is worrying. Our economies are getting weaker and they are losing ground internationally. This situation requires emergency measures and Europe needs to get back to growth", said Alfredo Pallone MEP, Rapporteur of the Report 'Public Finances of the EMU - 2011 and 2012', on the sidelines of the vote in the Economic and Monetary Affairs Committee (the Report was adopted with 34 votes in favour, 1 against and 4 abstentions).

"The progress made in the context of European economic governance is considerable, but we need to do even more. Consolidation of public budgets is the first step to re-start growth. Consolidation should be carried out while having the least possible impact on European citizens and future generations. But consolidation alone is not enough. We need national governments to make structural reforms to initiate a genuine process of economic growth. We need to act and we must do it quickly."

"Fiscal consolidation is the first step towards bringing the European economy back to growth, but this alone is not enough: consolidation must be done in an intelligent manner, without choking the economy and by minimising the negative impact on the GNP of each Member State", said Alfredo Pallone MEP.

The Report stresses the need to carry out a consolidation based more on reducing unproductive public spending rather than increasing tax revenues, in order to reduce the level of tax burdens weighing on households and businesses in Europe. This must include cutting down on waste and inefficiencies while fighting tax evasion.

Long-term structural measures are needed to boost growth and employment. More attention should be devoted to labour market policies, more effort has to be made to implement policies of innovation, and to encourage research and development investments and education policies. A better environment for businesses with easier access to credit is needed to help them regain the loss of competitiveness in recent years.