2013/01/17

Pallone Report Approved by European Parliament


The European Parliament approves that Regions fund themselves 

The Parliament has also voted for equitable public deficit distribution among public administrations, as well as for the elimination of purposeless ministries and prioritizing the reduction of unnecessary military expenditure. 

Yesterday, the European Parliament approved by an ample majority the Pallone report on Public Finance within the European Union, counting on the explicit support of the European Popular Party (Christian Democrats), the Socialists & Democrats (Labour), the Liberal-Democrats, as well as the Greens. Find links to the video of the speech by MEP Ramon Tremosa and the report approved below.

The aim of the resolution approved is to define actions to be carried out on public finances in order to guarantee sustainability. In this sense, the European Parliament has clearly voted for cutbacks in non-productive expenses and the increase of income without raising taxes. 

The report thus points out the importance of the fight against tax evasion, as well as gradually reducing taxes on income and increasing those on pollution, among many other measures. 

Furthermore, the plenary of the European Parliament has approved several amendments relevant for Catalonia and Spain that have been proposed by MEP Ramon Tremosa, who was the speaker for the Liberal-Democrats in this report. 

1. The European Parliament has recognised that if a region is financed with funds transferred from the central government, it is more difficult for the region to be able to carry out a fiscal consolidation process that adjusts expenditure and income.

"26. Is concerned by the risk that the set-up of the relationship between central and subnational governments can harm the implementation of fiscal consolidation, particularly when decentralisation is financed predominantly through transfers from the central government and is not matched by sub-national responsibility on the revenue side;"

2. The European Parliament votes for the elimination of purposeless ministries and those without competencies. Tremosa thinks that “the existence of these ministries is senseless and they generate expenses that could be used to reduce the volume of deficit without such a severe impact on social cohesion as the cutbacks are having on health services and education”.

We must remember that the Spanish government keeps the Ministries of Health Services, Education and Culture fully operational even though formally they have no competencies.

"27. Is concerned that in some Member States, sub-sectors of government and ministries may exist without concrete powers and tasks; these sub-sectors of government make the general administration more inefficient and profligate and should therefore be eliminated as part of fiscal consolidation efforts;"

3. The European Parliament has also approved that the responsibility must be equitably adjusted among all administrations, considering the services they provide the citizens. This is the sticking point for Catalan Regional Minister Mas-Colell, as well as for the Catalan Government (La Generalitat) who claim the Catalan deficit for 2013 should be 1.5% of Gross Domestic Product instead of 0.7%.

"28. Note that fiscal consolidation efforts should be shared between the different administrations in a fair way, taking into account the services they provide;"

4. Finally, the European Parliament has also voted for prioritizing the reduction of public expenditure for military equipment, mainly in new weapons procurement.

"30. Calls on Member States with budgetary problems to give priority to fiscal consolidation measures aimed at reducing unnecessary defence expenditures such as purchases of new and expensive military equipment;"

Tremosa considers the European Parliament has made clear steps forward by recognizing that the regions have to be responsible for their own tax systems, and that elimination of political institutions that do not offer any real service to the citizens, as is the case in Spain, is of great importance. 

Full text of the resolution 

MEP Ramon Tremosa's speech


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