Going against the conclusions of the Van Rompuy report, presented by the President of the European Council, members of the European Parliament insisted on the need to establish a social pact to counterbalance the effects of stricter supervision of economic and budgetary policies.

The question of the Economic and Monetary Union (EMU) was the focus of debates on Tuesday, November 20, during the European Parliament’s plenary session in Strasbourg. MEPs issued a series of recommendations for stronger and more transparent European economic governance.

The resolutions adopted by the MEPs follow from the presentation by their Belgian colleague Marianne Thyssen (EPP) of her report on strengthening economic governance in the EU. The Chairperson of the Committee on Economic and Monetary Affairs particularly calls for establishment of a social pact to be coupled with strengthening of the EMU. This “pact,” as advocated by MEPs, includes the following measures:

•  Creation of a youth employment guarantee fund;
•  Preservation and development of quality public services;
•  Guaranteed universal access to essential health services regardless of income;
•  The right to a decent living wage;
•  Access to affordable and social housing;
•  European standards to manage restructuring in a social and responsible way;
•  A new health and safety strategy including stress-related diseases;
•  Gender wage equality.

MEPs’ calls for sustainable establishment of a social pact are a direct result of the conclusions of the Van Rompuy report on the future EMU framework. This report, originating in the Council and drafted in collaboration with the Commission, the ECB and the Eurogroup, made no mention of the social and political consequences of austerity policies. The Chairperson of the Committee on Employment and Social Affairs, French MEP Pervenche Berès (S&D), lamented this fact while insisting on the need for transparency in economic governance. She calls for the International Labor Organization to be included in the “Troika” (Commission, ECB, IMF), which represents the eurozone in negotiations regarding conditions for financial aid granted to countries in difficulty.

Aside from the importance of strengthening the democratic legitimacy of the future economic Union, MEPs are addressing the Council and Commission to express their desire to preserve social cohesion. The Commission is expected to announce its proposals on this crucial issue in the coming days.