Economic recovery plan

Today the European Commission presented its European Economic Recovery Plan. Greens/EFA Co-presidents Daniel Cohn-Bendit and Monica Frassoni commented:

"The Commission is at last waking up and starting to tackle the major hangover of the financial and economic crisis. Barroso finally accepts that business as usual is not an option. But he still fails to fully acknowledge where the hangover came from and accept his part of the blame in the excesses and deregulation that caused the current mess...

 There is no guarantee the plan will work while the EU "coordination" is in reality a juggling act of Member States who continue to diverge with varying individual responses. If the EU had more of a competence in this area, it could enforce more coordination.

We are however pleased that the Commission sees the stability and growth pact as a flexible framework - not a straitjacket - so that urgently needed funds can be made available.

The EU recovery plan does not match the ambition of the environmental relaunch the Greens have been calling for. But given the constraints, it is at least a step in the right direction. We welcome increased financing through the European Investment Bank and new programmes that support a shift towards promoting eco-innovation, for example for energy-efficient buildings. A recent study of that sector in Germany has shown that €1 of public support generates €6-8 in private investment. (1)

This spirit must spread further: to the next review of the EU budget, to the Lisbon Strategy and to investing in a clean energy strategy that opts for the safe bet of renewables, not risky nuclear power.

Funding must be taken up if it is to make any impact. There is no point in freeing up billions more euro in structural funds now, when billions went unused last year.   

The Commission's plan envisages "at least €5 billion" in EIB soft loans for eco-innovation for cars. While automakers are lobbying hard for softer fines for non-compliance, the EU must take great care not to gift a carrot and drop the stick. Strict controls must be put in place to ensure this money does not become a subsidy in disguise.

The recovery proposal is still a mix of new and old recipes. So while we broadly welcome the plan, we emphasise that the proof will be in the pudding. The Greens and the European parliament will monitor the implementation of the plan very closely to ensure that the EU puts its money where its mouth is and delivers on its promises."

Notes:

(1) Study by the KfW-Staatsbank (Kreditanstalt für Wiederaufbau)

Press Service of the Greens/EFA Group
in the European Parliament

Chris Coakley,
Press Officer,
The Greens/EFA in the European Parliament
Tel: Brussels +32 2 2841667 / Strasburg +33 3 88174375
Mobile: +32-477-44-38-42
Fax: 0032 2 2844944
email: chris.coakley@europarl.europa.eu