The community method for a democratic and social EMU

Key points:

The Committee

• is convinced that a genuine stabilisation of the economic and monetary union (EMU) can only succeed if faults in the EMU's construction are rectified and major reforms are undertaken to accomplish this. This requires a change to the treaties as part of a convention;
• calls for measures to be taken to enhance the democratic and social dimension of the EMU within the framework of the existing treaties and to ensure that the self-imposed rules are followed;
• asserts that the longer the current savings-oriented policy continues without an effective investment plan to generate revenue through growth, social cohesion and solidarity, it will become increasingly clear that Europe's economic integration and prosperity is at risk from growing social inequalities;
• feels that social, political and economic cohesion must be strengthened to avert a break-up of the euro area. Balanced structural reforms must be introduced to reflect the requirements of a monetary union and in accordance with national requirements;
• calls for greater "parliamentarisation" of the euro area, with a grand EP committee comprising all members of parliament from the euro area and from those countries wishing to join (26 Member States), combined with stronger coordination of members of parliament from the euro area on EMU issues (COSAC +);
• points out that some of the economic policy goals of economic governance of recent years must be brought more into line with the EU's social policy objectives under Article 4(2) TFEU and possible conflicts between economic and social objectives should be resolved;
• demands that all measures under the European Semester – in accordance with the horizontal social clause –be subject to a social impact assessment;
• declares that the removal of divergences in the functioning of labour markets, wage-setting systems and welfare systems also plays an important role in a democratic and social EMU;
• is convinced that macroeconomic dialogue in the euro area (MED-EURO) is key for a proper involvement of Social Partners in the renewed architecture of EMU.