Financial and Economic Network: a stronger Union will deliver a stronger economy

11/04/2022

A strengthened and more united Europe is the best remedy to economic uncertainty, stagnation fears and rising prices for citizens, the Financial and Economic Network of the Party of European Socialists declared today.

To respond to the economic consequences of the Ukraine war and the coronavirus pandemic, representatives of PES member parties, S&D Group Members of the European Parliament and affiliated organisations today made the case for European action in three directions: investment to fast track the twin green and digital transitions; coordinated measures to soften price hikes for citizens; and a longer-term strategy which utilises a fiscal framework, provides durable investment, and strengthens the bloc’s strategic autonomy.

Meeting Chair, FEPS President Maria Joao Rodrigues, said:

“The atrocities taking place in Ukraine are a geopolitical game changer with significant political, social and economic implications. In the face of Russian aggression, we stand in full solidarity with Ukraine. For Europe, the only answer to this situation is a union of greater unity.

“It is clear that Europe needs a sizeable investment strategy, coordinated action to offset price hikes especially for the most vulnerable, and a strategic reassessment of its resilience. It is time to identify the tools we can utilise to fast-track sustainable economic growth and the wellbeing of society.

“The pandemic forced Europe to recalibrate. Socialists and democrats pushed for action and Next Generation EU was created, Europe started issuing bonds, that the general escape clause was activated. We learn from the success of these programmes. With the war in Ukraine, we are again at the political crossroads. In the spirit of unity, and owing to new asymmetric challenges, we must again create a strong common front against the external shocks cause by this crisis.”

 

As well as taking stock of the repercussions that the war in Ukraine and the Covid-19 crisis are having on Europe’s economy, the Network also exchanged on the review of Europe’s economic governance, the deepening of the banking union and the capital markets union.

To support Europe’s economy, it will be vital to get these reforms right, to end austerity, preserve fiscal flexibility, promote long term private and public investment, financial stability, and ensure debt sustainability.

The Network will retain a close watch on the upcoming European debate on the banking union, economic governance and in other areas, and will take stock of developments.