Public hearing on Successes and failures in crisis countries
Lieu: EP, Brussels
End production: 05/11/2013 First transmission: 05/11/2013
ECON organised a Public Hearing on "Successes and failures in crisis countries". The purpose of this hearing was to review the successes and failures in programme countries, given that the measures proposed are often contested and their democratic legitimacy is equally questioned. Furthermore short term effects of economic policies implemented could be different from their long term impact. The first panel of the hearing focused in particular on the economic and financial situation in Ireland, Cyprus, Spain and Slovenia. The second panel examined competitiveness, growth and the social dimension of structural reforms implemented in crisis countries, focusing in particular on Greece, Portugal and Italy.
Only the original language version is authentic and it prevails in the event of its differing from the translated versions.
||Exterior of the European Parliament in Brussels
||SOUNDBITE (English) Servaas DEROOSE, Deputy Director-General of DG ECFIN at the European Commission: "The Troika model has proved useful for dealing with the challenges facing Euro-area member states. And the three institutions have stated their intendancy to continue their involvement in the Troika work for the future.
||SOUNDBITE (English) Servaas DEROOSE, deputy Director-General of DG ECFIN at the European Commission: ". The Commission is aware of the own initiative of the European Parliament to study the functioning of the Troika with a view to enhancing its legitimacy. "
||SOUNDBITE (English) Servaas DEROOSE, deputy Director-General of DG ECFIN at the European Commission: " Swift progress to the banking union comprising single mechanism for the supervision and restructuring of banks is indispensible to ensure financial stability and financial integration in the Euro-zone. Necessary adaption of domestic wages has been slow in some countries and wage cuts have often not translated sufficiently into lower prices. This has compound the rising of unemployment and points to rigidities and product markets calling for more competition and further structural reforms."
||SOUNDBITE (English) Klaus MASUCH, Head of EU Countries Division, the European Central Bank: "Sizeable delays and shortcomings and implementing a greed reforms has significantly increased adjustment costs in terms of output and employment losses. In some countries such delays and shortcomings including after the insertion of the programmes, as for example in Greece have reflected mixed political reform ownership and reluctance to confront strong best interest. The good news is that there is light at the end of the tunnel. All countries at the economical adjustment programmes have made very significant progress in reducing the economical imbalances and in addressing legalities. Especially in labour markets, and ensuring financial stability. This has created the basis for sustainable growth and employment in the future. In fact, one could argue that this progress would have been much less pronounced in the absence of financial assistance programmes."
||SOUNDBITE (English) Klaus MASUCH, Head of EU Countries Division, the European Central Bank: "There are challenges remaining. Fiscal consolidation will need to continue sufficient buffals need to be build up in public budget to ensure that the social costs of future at worse financial or economic shocks are less severe as they have been this time. Product and service market reforms need to be accelerated. This is crucial because we need lower prices and enhanced productivity in order to increase competitiveness and the purchasing power of workers and consumers. Without such reforms in the product markets real wages and employment will remain too low for too long."
||8 cutaway shots
||SOUNDBITE (German), Othmar KARAS (EPP), leading the Parliamentarian delegation to evaluate the Troika: "We would like to draw lessons out of this crisis and to draw consequences out of the Troika work for the future. The solutions we have to develop have to reflect the existing problems of the Troika, which had existed right from the beginning. It was an emergency situation so it is an emergency structure. Therefore, the structure is intergovernmental and not a common one. Therefore, the democratic legitimacy is missing in the common framework, also as the democratic control. On those four aspects we will start to work to have a precise look how is the interaction between the members of the Troika, between the Troika and the Member States, between the Member states and the European stability mechanism, and what can be our conclusions for the future.