COMMITTEE ON ECONOMIC AND MONETARY AFFAIRS
THE CHAIR
1 April 2004
To the Ministers of Finance meeting in Punchestown on 2 and 3 April:
Think of the poor and the unemployed, Europe desperately needs strong growth
In advance of the informal ECOFIN meeting on 2 and 3 April, Mrs Randzio-Plath, Chair of the
Economic and Monetary Affairs Committee of the European Parliament, requests that finance
ministers, taking full note of the current economic situation, agree measures that go far beyond
those agreed by Heads of State and Government at the recent Brussels European Council.
"Whilst the latest economic forecasts indicate a very strong economic recovery in the United
States as well as in Asia, the figures for the European Union are comparatively disappointing
with an average forecast growth rate of 1.7%, and weaker still for the three major euro zone
countries".
"Europe must not be the only major economic zone that remains outside of this expected further
prosperity because Europe needs this growth in order to maintain its economic wealth,
significantly raise its employment rate and deal with the external shock that the accession of 10
new countries will constitute as of 1 May. Europe must not only depend on the external stimulus
from global demand, but develop its own measures for achieving a gradual pick-up of private
consumption".
"Finance Ministers should also envisage bold, targeted measures, in the context of the
preparation of the Broad Economic Policy Guidelines, to support internal economic growth in
Europe. Such measures should include innovation, education, and providing incentives for
certain essential investment. Finance Ministers should create a new dynamic for Europe's
internal growth, which will be the only means to allow us to benefit from an environment of a
global economic upturn".
Regarding financial services, which constitute another significant set of issues that the informal
ECOFIN meeting will deal with, Mrs Randzio-Plath recalled that "the European Parliament has
fully delivered on its obligations during this legislative term. All legislative texts relating to the
Financial Services Action Plan currently on the table have now been adopted and, above all,
greatly improved, due to the spirit of openness that characterises the Parliament's work, its
willingness to listen to financial market participants and its willingness to deliver politically
balanced outcomes". Nevertheless, Mrs Randzio-Plath underlines that "the situation remains
difficult regarding accounting standards, and in particular IAS 39. The Council should exercise
its political influence with both the International Accounting Standards Board and with the
Commission in order to find solutions that are in conformity with the interests of European
business."
Regarding multilateral issues that will be dealt with during the informal ECOFIN meeting in
Punchestown, Mrs Randzio-Plath said that "the forthcoming IMF Spring meetings should be the
occasion for the Council to exploit fully its competence in the area of exchange rate matters, as
per Article 111 of the Treaty, and to hold discussions with American and Asian partners in
order to resolve the problems associated with current exchange rate volatility and in order to
achieve a stabilisation of global trade flows which will ensure higher and more stable growth.
Separately, as regards external economic relations in the area of financial services, Mrs
Randzio-Plath also thinks that "the dialogue between the EU and US in the area of financial
services should be strengthened with the aim of establishing a balanced, and above all
reciprocal, relationship between the two largest global actors in this field".
For further information, please contact: Christa Randzio-Plath on 02/284 54 43