The European Parliament, meeting in plenary session in Strasbourg from 11 to 14 March, has approved by a large majority the Report of Bruno Trentin (PSE, I) on the situation of the European economy. The Report and Resolution of the EP are preparatory to the forthcoming Recommendation of the Commission on Major Guidelines of Economic Policy 2002. Taking its cue from the fact that the deceleration in economic growth and increased unemployment in Europe could trigger off “a fully-fledged recession in some countries of the EU”, the Resolution reconfirms the compulsory character of the growth and stability Pact and proposes the adoption of a “policy mix” at the European level consisting in the reduction of the cost of labour, the reduction of taxes and welfare contributions, the guarantee of the integrity of pension plans and health services and the acceleration of the process of reform approved by the European Council in Lisbon. “To achieve these objectives says the Resolution it will be necessary to implement appropriate structural reforms of the financial, labour and energy markets, with particular attention to policies in the field of education, research and development, and to develop communications and the new technologies”.
