Since the financial and euro crises, the EU has worked continuously to improve the stability of the Economic and Monetary Union. The Economic Policy Commission of the European Committee of the Regions adopted today the opinion on "Fiscal capacity and automatic stabilisers in the Economic and Monetary Union" by EPP-CoR Rapporteur Carl Fredrik Graf, Member of Halmstad Municipal Council, to include a grass roots element into the discussion on supporting EMU stability.
The fiscal capacity and automatic stabilisers in the Economic and Monetary Union are about addressing and adapting to asymmetric shocks in our common Monetary Union and Single Market. "It is extremely important for local and regional bodies to express their views on this matter, as stability is a vital prerequisite for the economy. Municipalities and regions will be affected by whatever changes there may be in the economic situation, and it is therefore essential to have a long-term overview of economic trends," Rapporteur Graf stressed upon the adoption of the opinion.
The opinion emphasises that despite the improvements in EMU governance and the financial sector, the mere coordination of national fiscal policies has not enhanced the national capacity to absorb economic shocks - nor prevented the emergence of an investment gap. Moreover, the existing policies have proved insufficient to trigger growth-enhancing, sustainable and socially balanced structural reforms.
"The role of local and regional authorities in enabling sustainable growth should be recognised and strengthened when possible. The implementation of economic and social policies, structural reforms, the creation of a business-friendly environment for more jobs, and the promotion of investment are all issues that rely on the grass roots level- therefore we should be more involved in the EMU governance, especially when responding to asymmetric shocks," the Rapporteur concluded.