A positive fiscal stance for the euro area

Question for written answer
to the Commission
Rule 130
Alfred Sant (S&D)
E-009024/2016

Subject: A positive fiscal stance for the euro area

According to the Commission communication ‘Towards a positive fiscal stance for the euro area’, a stronger fiscal policy, in combination with reforms and support for investments, can not only contribute to a swifter reduction in unemployment in the short run, but also lift medium-term growth in the euro area.
In this communication, the Commission:
1.
Identifies a fiscal expansion of up to 0.5% of GDP at the level of the euro area as a whole as being desirable for 2017 in the present economic circumstances;
2.
Underlines that Member States are in very different situations in terms of fiscal space or consolidation;
3.
Notes that blindly applying the rules of the Stability and Growth Pact (SGP) while disregarding their elements of flexibility would not produce a satisfactory outcome;
4.
Stresses that Member States which enjoy fiscal space do not necessarily use it, and therefore encourages them to implement a more expansionary fiscal policy.
Given the above:
—
Can the Commission state how it intends to push for a stronger fiscal stance in the Member States concerned, and what measures should be taken in order to achieve this goal?
—
Does the Commission believe that more clarification should be provided as to how to strike a balance between promoting fiscal stance in the euro area while ensuring that the SGP rules are implemented?

Answer given by Vice-President Dombrovskis on behalf of the Commission
The Commission sets out in the communication, the argument for a more positive fiscal stance, which refers both to the moderately expansionary direction that fiscal policy should take overall and to the quality and composition of the fiscal adjustment, in terms of the distribution of efforts across countries and the types of expenditure and/or taxes behind it.
To that end, the Commission is supporting the Eurogroup, the Council and the European Council in their discussion on the recommendation on the economic policy of the euro area for 2017-18. The recommendation should set out an overall direction for the euro area fiscal stance and what is expected of Member States, not only in the light of their own economic and fiscal situation, but also of the euro area as a whole.
In the absence of a fiscal stabilisation function, there is no built-in mechanism at the EU level to deliver a fiscal stance which is appropriate for the euro area as a whole while being well balanced across the Member States. The design of a positive fiscal stance is thus essentially a matter for the collective responsibility of the euro area Member States, requiring the adoption of a more collective approach which takes account of the differences in situations across countries: Member States in the Excessive Deficit Procedure and others still needing to progress towards their medium-term budgetary objective should continue to do so, as recommended to them.
Member States with fiscal space should be encouraged to carry out a more expansionary fiscal policy, including by making full use of the tools of the Investment Plan for Europe in order to maximise the impact on the real economy, such as guarantees to the European Fund for Strategic Investments

Maltese Version – E-009024/2016

Suġġett: Pożizzjoni fiskali pożittiva għaż-żona tal-euro
Skont il-komunikazzjoni tal-Kummissjoni “Lejn pożizzjoni fiskali pożittiva għaż-żona tal-euro”, politika fiskali aktar b’saħħitha, flimkien ma’ riformi u appoġġ għall-investimenti, mhux biss jistgħu jgħinu biex jitħaffef it-tnaqqis tal-qgħad fuq terminu qasir, iżda wkoll jagħtu spinta lit-tkabbir fiż-żona tal-euro fuq perjodu medju.
F’din il-Komunikazzjoni, il-Kummissjoni:
1. tidentifika espansjoni fiskali sa 0,5 % tal-PDG fil-livell taż-żona tal-euro kollha kemm hi bħala mixtieqa għall-2017 fiċ-ċirkostanzi ekonomiċi preżenti;
2. tissottolinja li l-Istati Membri huma f’sitwazzjonijiet differenti ħafna f’termini ta’ spazju jew ta’ konsolidazzjoni fiskali;
3. tinnota li, l-applikazzjoni għamja tar-regoli tal-Patt ta’ Stabilità u Tkabbir (PST) filwaqt li jiġu injorati kompletament l-elementi tagħhom ta’ flessibilità ma tipproduċix riżultati sodisfaċenti;
4. tenfasizza li l-Istati Membri li jgawdu minn spazju fiskali mhux bilfors jużawh, u għalhekk tħeġġiġhom biex jimplimentaw politika fiskali aktar espansiva.
Fid-dawl ta’ dan ta’ hawn fuq:
Tista’ l-Kummissjoni tiddikjara kif bi ħsiebha tinsisti għal pożizzjoni fiskali aktar b’saħħitha fl-Istati Membri kkonċernati, u liema miżuri għandhom jittieħdu sabiex jinkiseb dan l-għan?
Il-Kummissjoni temmen li għandu jiġi ċċarat aktar il-mod kif jinħoloq bilanċ bejn il-promozzjoni ta’ pożizzjoni fiskali fiż-żona tal-euro filwaqt li jiġi żgurat li r-regoli tal-PST jiġu implimentati?

E-009024/2016
Il-Kummissjoni tistabbilixxi fil-Komunikazzjoni l-argument għal pożizzjoni fiskali aktar pożittiva, li tirreferi kemm għad-direzzjoni ta’ espansjoni moderata li l-politika fiskali jinħtieġ li tittieħed b’mod ġenerali u kemm għall-kwalità u l-kompożizzjoni tal-aġġustament fiskali, f’termini tad-distribuzzjoni tal-isforzi fost il-pajjiżi u t-tipi ta’ nefqa u / jew taxxi warajha.

Għal dan il-għan, il-Kummissjoni qed tappoġġa lill-Grupp tal-Ewro, lill-Kunsill u lill-Kunsill Ewropew fid-diskussjoni tagħhom dwar ir-Rakkomandazzjoni dwar il-politika ekonomika taż-Żona tal-Ewro għall-2017-2018. Ir-Rakkomandazzjoni jinħtieġ li tistabbilixxi direzzjoni b’mod ġenerali għall-pożizzjoni fiskali taż-Żona tal-Ewro u x’inhu mistenni mill-Istati Membri, mhux biss fid-dawl tas-sitwazzjoni ekonomika u fiskali tagħhom stess, iżda wkoll għaż-Żona tal-Ewro kollha kemm hi.

Fin-nuqqas ta’ funzjoni ta’ stabbilizzazzjoni fiskali, ma hemm l-ebda mekkaniżmu intern fil-livell tal-UE biex iwassal għal pożizzjoni fiskali li tkun xierqa għaż-Żona tal-Ewro kollha filwaqt li tkun ibbilanċjata sew fil-livell tal-Istati Membri. It-tfassil ta’ pożizzjoni fiskali pożittiv huwa għaldaqstant u essenzjalment kwistjoni tar-responsabbiltà kollettiva tal-Istati Membri taż-Żona tal-Ewro, li teħtieġ l-adozzjoni ta’ approċċ aktar kollettiv li jikkunsidra d-differenzi f’sitwazzjonijiet madwar il-pajjiżi: L-Istati Membri fil-Proċedura ta’ Defiċit Eċċessiv u l-oħrajn li għad iridu jipprogressaw lejn l-objettiv baġitarju ta’ terminu medju ta’ żmien jinħtieġ li jkomplu jagħmlu dan, kif rakkomandat lilhom. L-Istati Membri bi spazju fiskali jinħtieġ li jitħeġġew iwettqu politika fiskali iktar espansjonarja, inkluż bl-użu sħiħ tal-għodod tal-Pjan ta’ Investiment għall-Ewropa biex jiġi mmassimizzat l-impatt fuq l-ekonomija reali, bħall-garanziji għall-Fond Ewropew għall-Investimenti Strateġiċi.