Question for written answer
to the Commission
Rule 130
Alfred Sant (S&D)
P-009285/2016

Subject: Council position on a positive fiscal stance for the Euro area

Considering that the Commission, in its Communication “towards a positive fiscal stance for the euro area” underlines that:

1) In light of the slow recovery and risks in the macroeconomic environment, there is a case for a moderately expansionary fiscal stance for the euro area;

2) Based on its estimates, a fiscal expansion of up to 0.5% of GDP at the level of the euro area as a whole is considered desirable for 2017 in the present circumstances.

On the contrary, the Eurogroup, at the meeting held on 5 December 2016:

a) Recalls its position from July, where it concluded that the neutral aggregate fiscal stance in 2017 strikes an appropriate balance;

b) Underlines the importance to strike an appropriate balance between the need to ensure sustainability and the need to support investment to strengthen the fragile recovery thereby contributing to a more balanced policy mix.

In this regard:

– Does the Council support the Commission’s position on a positive fiscal stance, or the Eurogroup’s neutral fiscal stance?

– If the Council supports a neutral fiscal stance for 2017, what is the evidence on which such a decision would be based upon?

ANSWER
On 27 January 2017, the Council welcomed the progress made on fiscal consolidation, but acknowledged that the aggregate picture hides large differences across the Member States and that public finance challenges remain. It recalled that for the euro area strong coordination of national fiscal policies, based on common rules, was essential to arrive at an appropriate aggregate fiscal stance and for the proper functioning of the monetary union. The Council noted the Commission Communication and analysis of the fiscal stance calling for a positive fiscal stance for the euro area as a whole and recalled that the Eurogroup in July had concluded, on the basis of the Commission’s analysis, that the broadly neutral aggregate fiscal stance in 2017 strikes an appropriate balance. The Council recognised the importance at the current juncture of aiming for an appropriate balance between the need to ensure sustainability and the need to support investment to strengthen the recovery, thereby contributing to an appropriate aggregate fiscal stance and a more balanced policy mix

Maltese Version – L-opinjoni tal-Kunsill dwar pożizzjoni fiskali pożittiva għaż-żona tal-euro

Il-Kummissjoni, fil-komunikazzjoni tagħha tas-16 ta’ Novembru 2016 intitolata ”Lejn pożizzjoni fiskali pożittiva għaż-żona tal-euro” (COM(2016)0727) tenfasizza li:
1. Fid-dawl tal-irkupru kajman u tar-riskji fl-ambjent makroekonomiku, hemm argument favur pożizzjoni fiskali moderatament espansjonarja għaż-żona tal-euro.
2. Abbażi tal-istimi tagħha, espansjoni fiskali ta’ ‘l fuq minn 0,5 % tal-PDG fil-livell taż-żona tal-euro kollha titqies bħala xi ħaġa mixtieqa għall-2017 fiċ-ċirkostanzi preżenti.
Min-naħa l-oħra, il-Grupp tal-Euro, f’laqgħa li saret fil-5 ta’ Diċembru 2016,
a) fakkar fil-pożizzjoni tiegħu ta’ Lulju 2016, fejn ikkonkluda li l-pożizzjoni fiskali aggregata newtrali fl-2017 tilħaq bilanċ adatt;
b) enfasizza l-importanza li jinstab bilanċ xieraq bejn il-ħtieġa li tiġi żgurata s-sostenibbiltà u l-ħtieġa li jiġi appoġġat l-investiment biex jissaħħaħ l-irkupru fraġli, b’kontribut għal taħlita ta’ politika aktar bilanċjata.
Fid-dawl ta’ dan, il-Kunsill mitlub iwieġeb għal dan li ġej:
Jappoġġa l-opinjoni tal-Kummissjoni dwar pożizzjoni fiskali pożittiva, jew l-opinjoni tal-Grupp tal-Euro dwar pożizzjoni fiskali newtrali?
Jekk jappoġġa pożizzjoni fiskali newtrali għall-2017, fuq liema evidenza hija bbażata tali deċiżjoni?

Tweġiba
(13.3.2017)
Fis-27 ta’ Jannar 2017, il-Kunsill laqa’ l-progress li sar fil-konsolidazzjoni fiskali, iżda rrikonoxxa li l-istampa globali taħbi differenzi kbar bejn l-Istati Membri u li għad baqa’ sfidi ta’ finanzi pubbliċi. Huwa fakkar li għaż-żona tal-euro, il-koordinazzjoni b’saħħitha ta’ politiki fiskali nazzjonali, ibbażati fuq regoli komuni, kienet essenzjali biex tintlaħaq pożizzjoni fiskali aggregata xierqa u għall-funzjonament tajjeb tal-unjoni monetarja. Il-Kunsill ħa nota tal-Komunikazzjoni tal-Kummissjoni u tal-analiżi tagħha tal-pożizzjoni fiskali li tappella għal pożizzjoni fiskali pożittiva għaż-żona tal-euro kollha kemm hi u fakkar li f’Lulju l-Grupp tal-Euro kien ikkonkluda, abbażi tal-analiżi tal-Kummissjoni, li pożizzjoni fiskali aggregata ġeneralment newtrali fl-2017 tikseb bilanċ xieraq. F’dan l-istadju, il-Kunsill irrikonoxxa l-importanza li l-mira tkun bilanċ xieraq bejn il-ħtieġa li tiġi żgurata s-sostenibbiltà u l-ħtieġa li jiġi appoġġat l-investiment biex jissaħħaħ l-irkupru u b’hekk jikkontribwixxi għal pożizzjoni fiskali aggregata xierqa u taħlita ta’ politika aktar bilanċjata.

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