The Economic and Social Council (CES) has raised concerns regarding the new European fiscal rules recently implemented, stating that they do not fully address the issues faced by the previous system. The CES report includes recommendations such as prioritizing the achievement of the Banking Union, deepening financial integration through the Capital Market Union, defining an industrial policy focused on specific sectors, and issuing joint public debt to strengthen the EU’s resources.
The CES acknowledges the positive aspects of the new fiscal rules but points out its complexity and reliance on variables that are not directly observable. The report highlights the need for reforms to European mechanisms, increased investment at the European level, and complementing national fiscal policies to address current macroeconomic challenges. The report also emphasizes the importance of balancing fiscal policies with monetary policy to support economic recovery.
To achieve this balance, the CES recommends completing the Banking Union to prevent financial instability, advancing the Capital Market Union to mobilize private capital for investments, and implementing new European taxes to generate revenue for Member States. The CES also calls for the development of a common industrial policy to enhance competitiveness at an international level and promote economic activity within the EU.
In conclusion, the CES stresses the importance of valuing European human capital, incorporating a gender perspective into investments, and focusing on areas like child poverty to ensure economic and social returns. The organization advocates for a holistic approach to economic recovery and sustainability and urges the EU to consider its behavior under the new fiscal rules to ensure a fair and effective economic strategy.