BRUSSELS (MNI) – European Union member states needed both fiscal
discipline and growth-enhancing structural reforms, the EU’s
Commissioner for Economic and Monetary Affairs, Olli Rehn, said on
Wednesday.
Responding to criticisms from the European Parliament’s Economic
and Monetary Affairs Committee about the proposed new sanctions that
might be used to punish member states who exceed the deficit and debt
limits of the EU’s Stability and Growth pact, Rehn said: “To my mind it
is important that we realise that we need both fiscal discipline and
growth-enhancing structural reforms. That’s the kind of investment that
will stimulate economic growth.”
He also said that Europe needed to “maintain momentum” on
developing a new system of economic governance, adding that there would
be new and revised secondary legislation as part of a package of
proposed laws to be published by the European Commission in two weeks
time.
Rehn also said it was important for Europe to deal with divergences
in competitiveness among member states.
He said Europe needed a combination of measures, including the
development of innovative financial instruments, investment in
innovation, employment, as well as large scale infrastructure projects.
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