The European Parliament representatives at the working group drafting the international agreement on a reinforced economic union stressed the need to base all decisions on normal EU procedure in order to ensure democratic accountability. They also called on Member States to establish a national debt reduction fund and to adopt a roadmap towards eurobonds.

The MEPs chosen to represent the Parliament at the working group drafting the new intergovernmental agreement on a reinforced economic union proposed changes to the draft agreement with the aim of reinforcing the ‘debt brake’. In particular, they call on Member States to establish a national debt reduction fund and to adopt a roadmap towards creating the conditions that will allow them to issue part of their sovereign debt in common, with joint and several liabilities.

With regard to the changes asked, Elmar Brok, MEP, defended them because the EU still need insurances that no new institutions will be created, and that all measures will be taken by Community legislation according to the rules laid down in the EU Treaties. Furthermore, Roberto Gualtieri, MEP, assured that the proposed agreement must not be at the expense of much-needed public investment. He also added that it is needed new Articles on the creation of a national debt redemption fund and the introduction of project bonds and a Financial Transactions Tax, all of which would give a huge boost to the budgets and economies of EU Member States. On the other hand, Guy Verhofstadt, MEP stressed that the new treaty must be fully compatible with the existing Treaty and with existing EU law.

The EP representatives also have serious doubts as regards the provisions enabling Member States to bring each other before the Court of Justice when failing to comply with budgetary discipline. Moreover, they insist that the agreement enters into force after ratification by four fifths of the Eurozone members and that its provisions are brought within the framework of EU law as rapidly as possible.