European Central Bank ECB. 1999 report

The European Parliament adopted a resolution drafted by Alexander RADWAN (EPP/ED, Germany) on the 1999 Annual Report of the European Central Bank (ECB). The ECB is congratulated on its stability policy, securing an all-time low rate of inflation in the Euro zone countries, as well as on the low interest rate. Parliament urged it to adopt two further transparency measures: publication of the minutes as soon as possible after each meeting giving arguments for and against monetary policy action (although not covering votes) and publication of a regular report on the economic situation (including productivity growth and sustainable earnings increases) in each euro area Member State. The latter are urged to use the cyclical upturn to reduce budget deficits and accelerate the reduction of debt and support the ECB's stability policy by speeding up structural reforms in the markets for goods, services and capital, labour markets and social insurance systems. Member States should be able to achieve balanced budgets or surpluses earlier than originally planned. Parliament is not concerned about the fall in the value of the euro so much as the structural problems within the euro area economy, and the lack of dynamism within the EMU economy. The competitiveness of the euro area must be increased. The moderate wages policy within the euro area so far is welcomed. With regard to enlargement, Parliament stressed the need for a high level of convergence in the real economy in order to limit the strain involved, both for the Community and for the applicant countries.�