Brussels, 9 February 2012

Statement regarding the "Treaty on Stability, Coordination and Governance in the Economic and Monetary Union"

Dear Green friends, The Greens/EFA Group in the European Parliament has discussed the "Treaty on Stability, Coordination and Governance in the Economic and Monetary Union" at several occasions and has sought the opinion of different legal experts on the matter. Yesterday we discussed the Treaty together with those legal experts and we would like to share with you what has emerged from our discussions and assessments. We are also most interested in having your feedback and comments. First of all, almost all of the content of this intergovernmental Treaty can and - to a large extent - has already been achieved through EU law and in those aspects the Treaty is superfluous and brings little added value. Secondly, some provisions of this Treaty may violate EU law meaning that no legal certainty will be obtained by this agreement. • As regards the foreseen "reversed majority vote" the compatibility with article 126 (13) TFEU, which provides explicitly for a "positive" qualified majority vote, can be questioned. Furthermore this "commitment to support the proposals or recommendations submitted by the European Commission" risks bypassing the Economic dialogue foreseen in article 2a of Regulation 1467/1997 as amended by Regulation 1177/2011 (part of the so-called "Six-pack") and would undercut even the minimal rights of the European Parliament established therein. The scope of article 273 TFEU is rather limited for the European Court of Justice to act upon and it cannot mirror an infringement procedure in which the Commission plays a crucial role. The European Court of Justice's power to rule on non compliance with Article 3(2) may thus be very limited and ineffective. Furthermore where the Treaty provides for a conferral of new tasks and responsibilities on EU institutions outside the framework of EU law this may also pose legal problems. With regard to the Euro-summit, which is introduced as a new institution with a limited membership, the question arises as to whether this does not

risk impinging on the responsibilities of the European Council and its independent functioning and questions the institutional balance of the EU. Thirdly, the policies pursued in this Treaty are unbalanced; without questioning the need to enhance budgetary solidity, we are convinced that a policy based solely on austerity strategies and lacking investment and growth enhancing measures will not overcome the crisis in the most affected countries and will finally be at the detriment of all EU countries. This new Treaty deals only with aspects linked to fiscal stability, whereas we believe that there is an urgent need for a strong recovery pillar based on a democratic European Union of solidity, solidarity and sustainability, for which we are currently preparing a resolution with concrete legislative proposals, among which the setting up of an effective and enhanced firewall, including a banking license for the EFSM/ESM, the establishment of a redemption fund, a roadmap for Eurobonds, a genuine EU 2020 partnership, project bonds, a comprehensive tax pact, enhanced symmetric management of macro-economic imbalances, a social convergence process, a strong re-regulation of Europe's finance industry and, last but not least, an enhanced role for the European Parliament in the economic coordination and surveillance procedure Considering this Treaty useless, we do not lend our support to it. Our group intends to pursue a twofold strategy: Put utmost importance on improving economic governance by fully exploiting the potential of existing laws, including enhanced cooperation, and further developing secondary law and the community method Start making proposals and gathering support for the process of a Treaty revision, the only way to create a democratic political Union encompassing new economic governance based on democracy, solidity and solidarity. Best regards,

Rebecca Harms

Daniel Cohn-Bendit

Co-Presidents of the Greens/EFA Group at the European Parliament

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