EP special Committee on Crisis calls for a new growth model for the EU

A European Treasury, tax harmonisation, euro bonds and increased EU expenditure to finance investments in research and development, infrastructure and energy projects is needed to ensure the EU's future competitiveness and sustainable growth, suggests the first draft of what is to become the final report by Committee on Financial, Economic and Social Crisis.

The EU is in need of a quantum leap forward to deepen political union and economic integration, says the draft report prepared Committee rapporteur Pervenche Berès. The draft seeks to outline the committee's recommendations for a sustainable EU growth model to tackle the crisis. It has implications for the forthcoming EU economic governance reform, the EU 2020 strategy, fiscal and budgetary policy, financial regulation and supervision, and even for reform of global governance and the EU's representation worldwide.

Specifically, the draft report calls for the development of a European Treasury and euro bonds, a shift towards tax harmonisation within the EU, the transformation of the G20 into a new Economic Security Council and the setting up of a new international monetary system to tackle global imbalances. Although some MEPs pointed out that current economic governance proposals are steps forward to recovery, they added that Europe is not only in need of economic governance.

The EU's next multi-annual financial framework (long-term budget) should aim to boost EU expenditure to meet the EU 2020 strategy targets, says the draft report. In particular, new investments should promote a knowledge-based economy, research and development, innovation, job creation and infrastructure and energy projects. Prioritising education as the feedstock for research and development can be the key, as some MEPs underlined, for a different European recovery model in relation to the rest of the world's.

The crisis is not over, stressed Committee Chair Wolf Klinz, arguing that it had now become a political one and highlighting the need for the EU to be clear on what citizens are to get back from it, in order to get them involved in the European Union.

The deadline for tabling amendments to the draft report by Pervenche Berès is 13 April. The draft will be put to a committee vote on 30 May, and a plenary one in July.