Guy Verhofstadt, ALDE group leader, responded to socialist group criticism today in which they attack the EPP and the ALDE group for defending the importance of budgetary rigour and strengthening the mechanisms for budgetary discipline in the future.

"In these times of a crisis of governance of the Union, there is no purpose in repeating old ideological debates. We need to fight for the future of the Euro and the European economy instead of fighting each other. We should work together on a bold and ambitious strategy on the economic governance to be voted in Parliament in June."

"The debate on the euro, the economy and the labour market is not a choice between budgetary discipline and economic growth. It is not a question of 'either / or' but of 'both'. In order to restore confidence in our currency and our markets we need to combine a strengthened Stability and Growth Pact with an ambitious economic strategy and genuine economic governance.

"The real choice facing us is between the intergovernmental method and the Community method. The majority of the European Parliament is united in insisting on the Community method as the only way out of the crisis."

"We must work together on a bold resolution in June comprising the following four elements:

• Closing the budgetary gap between the Member States in the EU and the eurozone, by strengthening the Stability Pact; including new and effective sanctions that go beyond what the Commission proposed last week.
• Closing the "competitiveness gap" between the Member States in the EU and the eurozone, by introducing a credible and therefore legally binding Economic 2020 Strategy that can create new growth and jobs.
• The establishment of a European Monetary Fund that on the basis of its own lending capacity, can help countries in difficulties as well as force them to reform and adjust.
• The introduction of a eurobond market that could reduce the cost of borrowing for all Member States substantially."