Party of European Socialists hails Commission's shift away from blind austerity


The Party of European Socialists has hailed the European Commission's new 'positive fiscal stance', which will give Eurozone countries more room for manoeuvre in planning their annual budgets.

The PES has long criticised the fiscal rules of the Stability and Growth Pact as overly tight, contributing to austerity, slowing economic growth and jeopardising social welfare.

The Commission's shift away from this painful and short-sighted approach to economic policy is very much welcome and will certainly deliver positive outcomes for European economies, said Sergei Stanishev, PES President.

Mr Stanishev said:

"The Commission's communication is a clear signal that our strategy against austerity is bearing fruit. The conservative-dominated course of post-crisis recovery has clearly been wrong, and has harmed our economies and our societies.

"Now, the Commission, too, has finally realised that our economies require a completely different remedy, namely incentives and opportunities for Member States, and especially those with budgetary surpluses, to spend more on job-creation, investment and education. The Commission's new target of additional fiscal expansion, at the level of 0.5% of Eurozone GDP annually, will narrow fiscal disparities and reduce macroeconomic imbalances between the northern and southern countries in the EU.

"This achievement would not have been possible without the efforts of our Commissioner, Pierre Moscovici, who is the main supporter of responsible and socially just economic policies in the Commission.

"I am confident that our excellent cooperation with Commissioner Moscovici will bring about even more positive and tangible outcomes for the citizens of Europe."