In a resolution on measures and initiatives to combat the financial crisis, MEPs call for a strong pan-European and global regulatory and supervisory system which leaves no financial market, instrument or institution off the record book.  The resolution on economic governance broadly backs the Commission's legislative proposals, but goes further on, inter alia, a permanent European monetary fund, European bonds, and the need to tackle budget surpluses as well as deficits.

In a debate before the vote, French MEP Pervenche Berès (S&D), who steered the financial crisis resolution through the Parliament, urged the Council and the Commission to "join forces with the European Parliament, because they have collective responsibility" for finding the way out of the crisis. "We have to rely on our own resources," be it in the field on energy or financial resources, she said, defending the idea of introducing a financial transaction tax. She nonetheless admitted that "no reform can be applied against the will of the Member States", called for "serious European mobilisation so that people can once again trust in the European project".

Diogo Feio (EPP, PT), who drafted the economic governance resolution, criticized Member States for so far having given too little attention to Parliament's stance on economic governance. "Be assured that the Parliament will be sticking to its main objectives throughout the negotiations on the six legislative proposals the Commission has proposed for reforming economic governance", he warned.  This position was strongly supported by several EP political group leaders in the debate which followed.

Making the Stability and Growth Pact work effectively

The financial crisis resolution stresses the importance of bringing EU Member States' deficits under control, deplores the poor enforcement of the Stability and Growth Pact and calls for more effective incentives and sanctions to ensure compliance.

To spur recovery, the EU should also implement the EU 2020 strategy consistently and complete the single market. Special attention should also be paid in the coming years to projects in areas such as energy, research and innovation or health and education, the resolution goes on to say.

Mr/Ms Euro to chair ECOFIN Council and Eurogroup

Furthermore, to ensure that the EU economic activity is consistent, MEPs propose that responsibility for economic and monetary affairs be entrusted to one of the Commission's Vice-presidents. This "Mr or Ms Euro" should chair the Economic and Financial Affairs Council and the Eurogroup and represent the EU on relevant international bodies. This would allow the European Union to speak with a stronger and more coherent voice on international level, say MEPs.

Financial transaction tax to limit the speculation

Implementing a strong "exit" strategy which also provides the funding necessary for many measures will require appropriate financial resources at EU level, the resolution goes on to note. MEPs therefore call for the introduction of a tax on financial transactions. This would reduce speculation, thus improving the functioning of the market, and revenue from this tax would help to finance global public goods and reduce public deficits. Finally, such a tax ought to apply as broadly as possible, but, failing that, it should, as a first step, be applied at least at  EU level.

Competitiveness at the heart of economic governance

The economic governance resolution recommends that countries running large surpluses, and not just those with large deficits, which should be required to make adjustments as a result of the detailed country-by-country surveillance to be established. Furthermore, the excessive debt sanctions system should account of each country's specific circumstances and allow for different debt-recovery timetables, it adds.

Permanent European Monetary Fund

The resolution also calls for a permanent European Monetary Fund to be established, based on a Commission analysis, so as to make the current European Financial Stability Facility permanent. The Commission is also asked to assess the feasibility of a system for issuing European bonds.

Parliament's role in legitimising EU economic co-ordination

Finally, the national budget vetting procedures provides for an enhanced role for the European Parliament in raising awareness, visibility and accountability of steps being taken by EU institutions to better co-ordinate budgetary and economic policies.