Tuesday

19th Mar 2024

Magazine

New EU financial instruments needed

  • Irene Tinagli (S&D, Italy) is the president of the ECON committee (Photo: the_amanda)

The European Parliament's committee for economic and monetary affairs (ECON) has been at the heart of the biggest crisis the European Union has seen since its foundation.

The financial and economic crisis of 2008/2009 has shaken the EU to its foundations.

Read and decide

Join EUobserver today

Get the EU news that really matters

Instant access to all articles — and 20 years of archives. 14-day free trial.

... or subscribe as a group

Not only were banks collapsing and people lost their savings, the euro was under severe pressure too.

For the first time since its introduction, in 2002 in 12 EU countries, people started to believe that the debt crisis could make the eurozone break up, with Greece as the first country to give up the single currency.

When Greece was saved, investors started to speculate on the budgetary collapse of Italy and Spain, two of the largest European countries.

Mario Draghi, president of the European Central Bank (ECB) stepped in and gave the only message that would stop the speculation: "Within our mandate, the ECB is ready to do whatever it takes to preserve the euro. And believe me, it will be enough."

However, the ECB was not the only institution that took action.

The European Commission, together with ECON, worked on new instruments to control and regulate banks and financial products.

And that is no doubt what they will do in the five years to come.

Unfortunately, the president of the ECON committee didn't answer EUobserver's questions, but luckily, Mario Draghi gave a farewell speech in which he talked about the challenges in economic and monetary affairs.

Draghi argued that after years of crises or weak growth, the ECB has exhausted its conventional policy arsenal to stimulate growth and that new institutional instruments are needed.

"It is plain to see that now is the time for more Europe, not less," Draghi said, adding that a common budget for the EU was necessary so there would be a centralised capacity to stabilise the monetary union.

"Today, we are in a situation where low interest rates are not delivering the same degree of stimulus as in the past, because the rate of return on investment in the economy has fallen," Draghi continued.

"Monetary policy can still achieve its objective, but it can do so faster and with fewer side effects if fiscal policies are aligned with it," he added.

Just as armies are perfectly trained to win the last war, instead of the next, the EU's instruments are not ready to deal with the next financial and economic crisis.

Therefore it will be an enormous challenge for the ECON committee to think ahead, together with the European Commission and the national governments to make sure the EU economy and the euro will survive a future crisis.

The chairwoman is Irene Tinagli (S&D, Italy). The coordinators are: Markus Ferber (EPP, Germany), Jonas Fernandez (S&D, Spain), Luis Garicano (Renew, Spain), Gunnar Beck (ID, Germany), Sven Giegold (Greens/EFA, Germany), Derk-Jan Eppink (ECR, the Netherlands), José Gusmao (GUE/NGL, Portugal).

This article first appeared in EUobserver's latest magazine, Who's Who in European Parliament Committees, which you can now read in full online.
Lagarde set to lead ECB

The Frankfurt-based European Central Bank is set to get its first female leadership after the EU leaders in Brussels nominated Christine Legarde, who is current managing director of the International Monetary Fund.

Magazine

Six priorities for human rights

Belgian socialist MEP Marie Arena is chairing the European Parliament's sub-committee on human rights. Her biggest challenge? Finding ways to reach objectives that cover an enormous spectrum of issues - from climate to child protection.

Magazine

EU must manage climate and industry together

For Romanian centre-right MEP Adina-Ioana Valean, the previous chair of environment committee and current chair of industry, research and energy (ITRE), climate and industrial policy-making must go hand-in-hand to bring sustainability and prosperity to Europe.

Magazine

ENVI to deliver 'Green Deal' as main priority

The French liberal MEP Pascal Canfin, who is chairing the European Parliament's committee on environment, public health, and food safety, is adamant to deliver the Green Deal quickly - because "we cannot afford to waste time".

Magazine

Welcome to the EU engine room

Welcome to the EU engine room: the European Parliament (EP's) 22 committees, which churn out hundreds of new laws and non-binding reports each year and which keep an eye on other European institutions.

Magazine

Which parties and countries chair the EP committees?

Although the European Parliament tries to keep a geopolitical balance within the committees, the breakdown of the actual chairs of the committees by political party and nationality is uneven - with a clear under-representation of central and eastern EU countries.

Latest News

  1. Borrell: 'Israel provoking famine', urges more aid access
  2. Europol: Israel-Gaza galvanising Jihadist recruitment in Europe
  3. EU to agree Israeli-settler blacklist, Borrell says
  4. EU ministers keen to use Russian profits for Ukraine ammo
  5. Call to change EIB defence spending rules hits scepticism
  6. Potential legal avenues to prosecute Navalny's killers
  7. EU summit, Gaza, Ukraine, reforms in focus this WEEK
  8. The present and future dystopia of political micro-targeting ads

Stakeholders' Highlights

  1. Nordic Council of MinistersJoin the Nordic Food Systems Takeover at COP28
  2. Nordic Council of MinistersHow women and men are affected differently by climate policy
  3. Nordic Council of MinistersArtist Jessie Kleemann at Nordic pavilion during UN climate summit COP28
  4. Nordic Council of MinistersCOP28: Gathering Nordic and global experts to put food and health on the agenda
  5. Friedrich Naumann FoundationPoems of Liberty – Call for Submission “Human Rights in Inhume War”: 250€ honorary fee for selected poems
  6. World BankWorld Bank report: How to create a future where the rewards of technology benefit all levels of society?

Stakeholders' Highlights

  1. Georgia Ministry of Foreign AffairsThis autumn Europalia arts festival is all about GEORGIA!
  2. UNOPSFostering health system resilience in fragile and conflict-affected countries
  3. European Citizen's InitiativeThe European Commission launches the ‘ImagineEU’ competition for secondary school students in the EU.
  4. Nordic Council of MinistersThe Nordic Region is stepping up its efforts to reduce food waste
  5. UNOPSUNOPS begins works under EU-funded project to repair schools in Ukraine
  6. Georgia Ministry of Foreign AffairsGeorgia effectively prevents sanctions evasion against Russia – confirm EU, UK, USA

Join EUobserver

EU news that matters

Join us