Press Release

26/11/2008

EU economic recovery plan ''the right toolbox''. Joseph Daul MEP, Chairman of the EPP-ED Group

"The right toolbox to tackle the current economic crisis" is how Joseph Daul MEP, Chairman of the EPP-ED Group (centre-right) in the European Parliament, described today's presentation by the European Commission of its European economic recovery plan.

In a plan totalling some €200 billion or 1.5% of the EU's GDP, European Commission President Barroso has proposed tax cuts and targeted investment to be co-ordinated across the European Union. "I welcome the priority given to coordinated action between the European institutions and the Member States. As the economy, together with social cohesion, are our main priorities, our political family will do its utmost to make sure that this coordination is implemented in reality", added Joseph Daul MEP.

"For my Group, the priority must be to protect Europe's citizens from the worst effects of the financial crisis. Sacrifices cannot be avoided but, together with President Sarkozy and Chancellor Angela Merkel, our Group believes that governments have to head off a recessionary spiral. Only by joint action can we hope to succeed", underlined Daul.

"We must also ensure the stability of the financial system. Bank rescue plans established by Member States must be implemented quickly and consistently with the highest level of transparency. Banks should not forget that when rescuing them, our primary aim is to protect European citizens and SMEs, which must be able to access finance on reasonable terms for their projects."

"We also welcome the fact that the Commission has based its response on the priorities of the Lisbon Strategy for growth and jobs. We have always considered that the reform agenda of the Lisbon Strategy represents the best guarantee to preserve the social market economy. Therefore, we agree with the Commission's position that a budgetary stimulus should be provided, but not without structural reforms in the Member States who should take measures to boost their economies without increasing their deficits. This is why we favour the idea of euro-bonds", Joseph Daul said.

"The EPP-ED Group is concerned about the external dimension of the crisis. No world region working alone will be able to overcome the effects of this crisis. We believe that the IMF should play a major role in close cooperation with EU institutions", concluded Joseph Daul MEP.

(Translation from the original French)

For further information:
Joseph Daul MEP, Tel: +32-2-2847525
Antoine Ripoll, Chairman's Spokesman, Tel: +32-475-856290

Notes to Editors:
The EPP-ED Group is the largest political group in the European Parliament with 288 Members from all 27 Member States.