mr president the commission welcomes the gottardi report and the substance of the report fits well with that of the two earlier commission reports on public finances in the emu released in june two thousand and seven and two thousand and eight
the commission also agrees with the three latest amendments tabled by the rapporteur on seven january
the european parliament's report confirms that the revised stability and growth pact sgp so far has been working as it should
in particular many member states have made considerable efforts to meet their obligations with regard to the pact
since the reform of the sgp both the corrective and preventive arms have been applied in full accordance with the provisions of the reform pact and any leniency in enforcement has not occurred
however the report also emphasises the very negative economic outlook for the eu and the euro area for two thousand and nine
growth has slowed down considerably to the point of turning into an outright recession this year
the overall economic prospects for twenty ten are also discouraging so the commission agrees with the european parliament that supporting demand by making use of discretionary fiscal policy measures is now essential
nevertheless fiscal policy should be maintained on a sustainable course anchoring expectations of an ordered resolution of the crisis
in this respect the commission shares parliament's concerns regarding the long-term sustainability of public finances and continues to put emphasis on its assessment
a new report on the long-term stability of public finances in the european union will be issued by the commission in autumn two thousand and nine
the commission also takes the european parliament's view that public expenditure has to be reoriented in order to improve the quality of public spending in line with the lisbon strategy
such a policy orientation is indeed part of the integrated policy guidelines adopted by the european council
work is ongoing at the commission for a more systematic assessment of quality of public finance developments including aspects of performance-based budgeting
