The European Movement International welcomes the reform proposals to complete the Economic and Monetary Union, as laid out in the ‘Five Presidents Report’, and calls on the Heads of European Governments to take the first steps towards a comprehensive reform of the EMU at the upcoming Council summit.

While the report does present a wide range of reform measures, the European Movement is concerned it lacks concrete plans for risk-sharing or a fiscal capacity based on own resources. The current extended period of economic recession has made it clear that we cannot have a strong single currency without a political union, including a common economic policy and increased budgetary and fiscal coordination, which will foster economic convergence among Member States

The European Movement is, moreover, worried that the Report remains vague on the much-needed social dimension of the EMU. The EMI calls upon European leaders to agree on enhanced solidarity and show decisiveness among Member States and Eurozone leaders, in order to alleviate the huge social costs of austerity.

Jo Leinen, President, European Movement International, said:

“After years of muddling through the crisis it is high time to take new steps to complete the European monetary union. To make the Eurozone more resistant to economic shocks and to provide the institutions and instruments necessary for the smooth functioning of the monetary union, the community method must be strengthened. We need a European finance minister and a sizeable Eurozone budget controlled by democratic institutions; otherwise the common currency will eventually fail.”

[ENDS]

Notes to the Editors

1. The European Movement International(EMI) is one of the largest pan and pro-European civil society organisations with currently more than 70 Member Organisations, bringing together representatives from European associations, political parties, enterprises and trade unions. europeanmovement.eu
2. The EMI has repeatedly called for the strengthening of the EMU, as referenced in its recent background briefing: http://ow.ly/OD1Fi