The Parliament’s Constitutional Law Committee ruled today that approving the EU’s recovery fund requires a decision by a two-thirds majority. The ruling has raised concerns, since rejecting the package would put the entire recovery fund, and with it Europe’s stability, in the balance. JEF Finland calls on Parliament to support the package.
“It is unequivocally in the interest of Finland and the whole of Europe that the recovery fund is successfully brought to completion. We appeal to both the governing parties and the opposition; there is no room now for political games,” comments JEF Finland President Risto Rajala.
In July, the EU agreed on a €750 billion recovery package aimed at supporting member states in restarting their economies and helping Europe recover from the consequences of the coronavirus. The package requires approval from all member states. If Parliament rejects the recovery package, the Commission will not be able to borrow money from the markets, and the budget for coming years will also be stuck. The Finnish Parliament’s decision therefore has an enormous impact on the whole of Europe.
Misunderstandings related to the recovery fund have caused difficulties in the public debate. Rejecting the package would not mean a return to the negotiating table, but a leap into an uncertain and unpredictable future, where the risk is a rapid collapse of European financial markets. The EU has no back-up plan to fall back on. The European Central Bank has already taken a firm grip in supporting recovery during the coronavirus pandemic, and in the face of a collapse, its options could suddenly run out.
“A lack of facts and a sense of proportion has repeatedly characterised the public debate on the recovery fund. The size of the package and its effects on member states’ sovereignty have been heavily exaggerated, and it does not change the EU’s fundamental nature,” Rajala emphasises.
The recovery fund is above all a demonstration of political solidarity with the member states hit hardest by the effects of the pandemic, as it gives them the opportunity to repair the damage caused and revive their economies. At the same time, however, care must be taken to reform the EU’s economic policy rules and institutions. The EU needs more common fiscal policy as well as a credible debt restructuring mechanism to ensure that every member state is genuinely responsible for its own debts.
“European integration is not a zero-sum game. Member states may benefit from it in different ways, but a functional and united EU is vital for everyone, both politically and economically. Parliament must remember this and do its part to stabilise Europe,” demands Rajala.