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Commenting on the European Commission proposals for the EU Spring Summit, PES President Poul Nyrup Rasmussen said “The European Commission’s satisfaction with its European Economic Recovery Plan, that it has set the right course, is completely misplaced and complacent. Why doesn’t the European Commission tell the truth? The economy and employment are in freefall. The European economic stimulus package is nowhere near the 3.3% of GDP that the Commission claims, the real total stimulus is less than 1%. The decline in GDP is not going to be -2% as forecast by the Commission, it may be as high as -4%.”

“A new, updated Recovery Plan is needed now, otherwise there will be 25 million unemployed in 2010. There must be real coordination focused on real investments. Europe also needs to do more for the countries of Central and Eastern Europe. It is in our common economic and political interest to prevent financial meltdown in those countries. Europe talks a lot about solidarity, now is the time it is really needed. This cannot be postponed until the June Summit, it must be tackled now.”

On financial regulation Rasmussen added “It is positive that Barroso has finally agreed to present regulation covering all financial players including hedge funds and private equity. What worries me is a large part of the private equity sector will now try to escape regulation by claiming it does not present ‘systemic risks’. But with the corporate loan market at risk of default and a substantial part of that market originating from private equity, I see no reason to let private equity slip out of the regulatory net.”

FOR MORE INFORMATION 
Julian Scola, Communications Advisor - Media & Campaigns
Party of European Socialists, Rue du Trône, 98, B-1050 Brussels
Mobile +32 486 117 394
julian.scola@pes.org