GUE/NGL
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Vampire economic governance pacts need urgent binning

Replying to Commission Vice-President Valdis Dombrovskis's speech this morning to MEPs on the review of economic governance regulations, Marisa Matias said “any assessment of the economic governance package should begin with a perfectly straightforward admission – it has failed.”

“We have more unemployment, less growth, and more economic imbalances. Peripheral member states don't have a penny for investment because every cent goes to paying debt. Any assessment must be serious and look at results. The results are clear: economic and social destruction in the EU. Mr Commissioner, rip these regulations up, they are rubbish and should be thrown in the bin.”

“For us economic governance under the 6-pack, the 2-pack, and the budgetary treaty is yet another mechanism to bring people into line with the multinationals that are really in charge,” said Miguel Viegas.

“Austerity and budgetary discipline merely serve the same interests that live off exploitation and the crisis,” he said, asking the Commission how it can explain why 24 member states are in breach of its rules and why the crisis continues with zero perspective for recovery.

Paloma Lopez Bermejo said that because of the crisis response policies, countries like Spain endure massive economic and social problems. “Spain has a 25% unemployment rate and the second biggest external debt in the world. This is the result of your economic governance package so the assessment has to be a negative. The Commission is supposed to be the promoter of productive convergence, not the accomplice of markets in the hollowing out of democracy.”

Quoting the Tupac song 'Changes', Teresa Rodriguez-Rubio compared the blame directed at black people in the US to misdirected scapegoating in the EU since the beginning of the crisis.

“The stability pact, like the bogus medical practice of leeching from the past, exacerbates the problem. These policies are sucking people dry,” she said. “I invite their proponents to look in the mirror to check if they still have a reflection.”

The Commission  evaluation is aimed politically at sending a message of a complete success for these regulations,” said Cypriot MEP Neoklis Sylikiotis. “Their goal is to justify austerity and neoliberal policies. Fundamental issues like the recession, high unemployment (especially among the young), poverty, and the gap between the centre and periphery are missing from the evaluation.”

“The ability of member states to receive loans on the international markets is considered an achievement but unfortunately it does not refer to the stagnation of the European economy over the last seven years. The reduction of budget deficits is referred to as an achievement but there is no reference to the social problems this policy is causing. GUE/NGL is opposed to the idea by which the Commission defines the strategy and the economic policy of member states. There is no democratic legitimacy for that. We want to see a strong welfare state, secure jobs and effective solidarity,” he concluded.

The GUE/NGL group is made up of 52 MEPs from across Europe working for peace, solidarity, social justice, equality, democracy and human rights in Europe and beyond. It is the only gender balanced group in the European Parliament.

GUE/NGL Press:

David Lundy +32 470 85 05 09
Emily Macintosh +32 470 85 05 08
Gay Kavanagh +32 473 84 23 20