This is a unique moment for the European Parliament. For the first time, a large majority of the Parliament (EPP, S&D, ALDE and Greens) comes forward with a common strategy on a strengthened economic governance and a more ambitious Europe 2020. It is a strategy based on five pillars, of which one important pillar, accelerating sustainable growth, is not included in the strategy of the Council.

1) A bolder Growth and Stability Pact
The EP believes that the current crisis of the euro has proven that the Growth and Stability Pact does not work appropriately and needs to be adjusted. The pact should include more efficient sanctions to make the MS adhere to the rules of the GSP. Moreover, it is necessary that national budgets are screened by the European Union (ECB and European Commission) prior to their final approval by the national parliaments. At the same time, the powers of EUROSTAT should be extended.

2) Real economic governance
The crisis has also shown that even more necessary than the tightening of the rules (of the Stability Pact in particular) is the need for a joint economic governance in the Union. That is especially the case for the euro zone, which aside from a Monetary Union, should become a genuine economic union. The blueprint of the economic governance should be drawn up by the European Commission, and directed and conducted by that same institution. An intergovernmental approach in which the Member States are in command, will fail to deliver, for the simple reason that the Council response has the habit of being too late or too little, as the outbreak of the Greek crisis has shown.

3) A strategy aimed at accelerating sustainable growth
To prevent the responses to the euro crisis (accelerated budget reduction) of resulting in a long-lasting period of economic stagnation, the Union should at the same time implement a strategy, particularly aimed at accelerating economic growth. Aside from reforms aimed at restoring and improving competitiveness, this strategy should be based on the following three specific initiatives or instruments:

• the re- launch of the internal market along the lines of the Monti report. This implies not only a jump start in eliminating all remaining barriers, (but also a focus on fiscal coordination and a policy of social convergence)
• the launch of an ambitious investment plan related to European infrastructure, which should also allow Southern Europe and the new Member States in Central and Eastern Europe to fully integrate into the single market. In the resolution we look for the feasibility of Eurobonds to finance these initiatives.
• a more effective collection of taxes by the national tax authorities and a more intensive fight against tax evasion and finance public investment through innovative financial sources . (for example a financial transaction fee)

     
4) Union should be better prepared for future crises
As mentioned in the previous resolution, the Union should be better prepared for future crises. This requires:

• The EFSM should as soon as possible be introduced through the Community method which is the easiest way to include also countries outside the euro zone such as Sweden and Poland.
• The EFSM should be transformed into a "European Monetary Fund” (EMF).
• We ask the Commission to conduct a study on the feasibility of creating a Eurobond market which could substantially decrease the cost of borrowing in the Union.

5) A bolder Europe 2020 strategy
The Lisbon Strategy has proved a failure. To ensure that this will not happen again:

• The EU should use a "carrot and stick" approach to encourage MS to implement the Europe 2020 strategy
• The European budget and the national budgets should be fully in line with the goals of the Europe 2020 strategy. Proposals from Rehn will give the Commission the possibility to give its opinion on the national budgets.
• The current proposals in the Europe 2020 strategy are too vague. In our resolution the EP stresses the need for more ambition to pull the European Union out of the current crisis and restore it into a bloc with high sustainable economic growth capable of competing with India, China and the US.