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Parliament calls for an EU road map to exit the crisis in a resolution passed on Thursday. It advocates recapitalising European banks, further harmonising national tax systems, issuing Eurobonds and strengthening EU economic governance arrangements for the Eurozone.
MEPs urge the European Commission to table an EU plan to restore financial market confidence, with a clear timetable for putting it into effect. The plan should not use intergovernmental instruments and should operate entirely within the EU institutional framework, they add.
Parliament believes that bank recapitalisation should be carried out at EU level and not be based on national priorities. The reform of European financial market regulation should also be completed, to make EU economy better able to withstand future crises, and Member States should harmonise their fiscal systems and take common measures to combat tax fraud, says the text.
Eurobonds and project bonds
On the growth front, MEPs call for the introduction of project bonds to sustain investments and for a mechanism allowing the Commission to enforce EU market rules in Member States quickly.
To tackle the crisis in the Euro area, Commission should report on the feasibility of introducing Eurobonds on the basis of joint liability by the end of 2011, say MEPs, stressing that this would help strengthen fiscal discipline and increase Eurozone stability through the markets. Finally, EU-level economic governance for the Euro countries should be also reinforced, says the text.
Next Steps
The resolution will be put to the European Council taking place in Brussels on 23 October.
