ALDE welcomes the European Commission's adoption today of a new economic governance package including a Green Paper on 'Stability bonds' which paves the way to medium and long term economic stability and sustainable growth.
 
"The Commission is right to assert its leadership role in this area despite some Member States' reluctance. If we want to make the euro zone more resilient against future crises, we will have to continue to work further towards establishing an economic and fiscal union -  as outlined in recent ALDE proposals for a new 'Community Act'. The two legislative proposals to strengthen economic and budgetary surveillance are a step in this direction to closer convergence and integration," said ALDE President Guy Verhofstadt.

Mr Verhofstadt welcomed in particular that the Commission not only presented ambitious ideas on how to introduce Stability Bonds in the future but also that it hinted to Member States what an immediate solution to the crisis could be by elaborating on the European redemption pact proposed by the German Council of Economic Experts. "In the absence of a proposal to solve the crisis by the Council, the Commission rightly points to the redemption fund recently proposed by the German Council of Economic Experts. The Commission should now actively promote the immediate adoption of this proposal, which does not require any modification of the Treaties".

The rapporteur appointed to draft European Parliament's position on the green paper and ALDE coordinator in the Economic and Monetary Affairs Committee Sylvie Goulard (Modem, France) said: "We congratulate the Commission for responding to our request to swiftly launch an in-depth consultation on the introduction of Stability bonds".
 
During the negotiations and the final adoption of the economic governance package, Mrs Goulard recalled that "the Parliament has insisted on opening this debate because we are persuaded that Eurobonds can play an essential role in fostering financial stability in Europe. They can produce incentives for Member States to respect fiscal discipline and at the same time free resources to invest in growth enhancing measures. Hence they can as well be a key instrument to exit the current crisis".
 
"We know that Eurobonds still raise legal and political controversy, but excluding them a priori without offering an alternative is definitely not a constructive approach to tackling the crisis," she concluded.