Economic policy co-ordination in stage 3 of EMU

In adopting the report by Mr Carles-Alfred GASOLIBA I BÖHM (ELDR, E) Parliament took the view that increasing real convergence among the economies of the Member States, in particular through closer coordination of their economic policies, was vital to the cohesion and stability of the European Union. The strengthening of such coordination should be based on a three-fold approach: - clearing the way for the adoption of a coherent and effective economic policy at Union level; - ensuring a democratic public debate on European economic choices; - improving the decision-making process, its effectiveness and its transparency. Parliament proposed that the recommendation for the broad guidelines of the economic policies should: - ensure that the monetary pillars of EMU were counter-balanced by an economic pillar; - determine the orientative targets for growth, inflation and public spending on investment in order to establish a policy mix conducive to growth and employment; - incorporate the economic policies linked to the internal market; - take account of the objectives laid down when the guidelines for employment are drawn up. Parliament took note of the possible creation of a Euro Council but was concerned as to the intergovernmental nature of this proposal and urged that even if the structure was an informal one the Commission should participate in it to the full extent of its competences. Parliament stressed that the strengthening of the coordination of economic policies must go together with better democratic supervision. It called in particular for its active and formal participation in the process of supervising the management of EMU. It called for the establishment of genuine dialogue between the social partners on the economic guidelines establishing, for example, an annual conference involving the social partners which would enable them to give their views on the broad economic guidelines envisaged. Lastly, it called on the Member States to offer their parliaments the best possible arrangements at national level for participating in the discussions on the framing of the broad guidelines of the economic policies of the Member States and the Community. �