MEP: ‘economy needs boost’

Date: 05/06/03

By Martin Banks

EU HEADS of state and government have been urged to take a "bold step" towards reviving the bloc's ailing economy when they meet in Thessaloniki later this month.

Christa Randzio-Plath, chairwoman of the European Parliament's influential economic and monetary affairs committee, made the appeal after admitting that the economic outlook for the Union was "bleak".

Speaking in Strasbourg on Tuesday (3 June), the German MEP said: "We must not overlook the fact that our economies are performing differently and that the outlook for the EU still looks rather bleak.

"The EU, therefore, has to do more to prevent its economy from sliding into recession and it has to do it now.

"I therefore call on the EU heads of state to take a bold step towards making economic policy coordination worthy of its name when they meet in Greece."

She added: "It is primarily the responsibility of the larger member states to make this happen.

"What the Union needs is more economic policy coordination and the upcoming adoption of the broad guidelines for the economic policies of the EU for 2003 and 2004 is the perfect opportunity to achieve that.

"These guidelines need to include a clear commitment to promoting productive investments - be they public or private - in order to give the economy a push towards recovery.

"This must be supplemented by tax incentives as well as an improved tax coordination in Europe.

"Such policies would, of course, be all the more effective if monetary policy were to be eased, something that I believe is possible at the moment."

MEP Christa Randzio-Plath has called on EU leaders to take measures to revive the EU's economy at the European Council meeting in Thessaloniki on 20 June 2003.