News from the Progressive Alliance of Socialists and Democrats in the European Parliament

The European Parliament's main progressive group today set out an alternative to cuts in spending as a remedy for the current economic crisis and called for real economic governance, with full consultation of the European Parliament.

Said S&D vice-president of the 184-strong Socialists and Democrats Stephen Hughes: "EU leaders approved a financial stability mechanism worth €750 billion earlier this week under the provisions of the Lisbon treaty. We believe that the European Parliament, which is the only EU institution representing directly the citizens of Europe , should be properly consulted.

"The European Commission will today urge member states to speed up cuts in fiscal deficits and expect stricter rules of budgetary discipline. In our view, the price of solidarity should not mean austerity at all costs. Cuts, cuts, cuts say the European Commission. We say: Yes to cuts -- but make them smart.

"We need to find the right balance between cuts in public expenditures and stimulating economic growth. Right now, the recovery of the European economy remains fragile and prospects are not good enough compared with our main competitors, China and the US .

"People have already paid a heavy price with 24 million out of work in the EU. Up to five million more could lose their jobs if European growth lags. European leaders should remember that there are people behind ratios of debt to GDP or deficit to GDP.

"There is another way.

"The EU needs a long-term investment strategy in the green economy, innovation and research in order to stimulate job creation and make up for cuts in national public expenditure. We urge member states to build the economic and social objectives of the EU 2020 strategy into their budget policies.

"This is the best way out of the recession and the best way to create jobs.