Speeches

Mr President, ladies and gentlemen. Binding fiscal rules are essential in a single market with a single currency, but in which economic and fiscal policy remains a national competence. Unequal debt levels in the euro area strain the stability of the euro and at the same time ensure that public investment for higher-debt countries is accompanied by disproportionate financing costs. Reform was overdue. The new fiscal rules are much more realistic than those in place today, and at the same time the new rules allow national specificities to be taken into account much more comprehensively. So far, so good. But even with the new fiscal rules, the question remains unresolved as to how a significant increase in public and private investment to finance the digital and climate-neutral transformation can be guaranteed in the future. To this end, we need the creation of a new European Investment Fund as a continuation of the European Recovery Fund, which is due to expire in 2026. Such a European fiscal capacity must be a key element of the next multiannual financial framework.

Mr President, ladies and gentlemen. The Economic Partnership Agreement with six countries from southern Africa has been in force since 2016. Time to review the extent to which the Agreement has achieved its objectives. And, of course, time for the European Parliament to formulate requirements for the further development of the partnership. In the light of the objectives pursued by the Agreement, it can be stated, on the one hand, that trade relations have been extended. At the same time, African countries are now achieving a trade surplus with the EU. In this respect, the agreement is successful. But there are also aspects that need to be improved. The volume of trade is still very low compared to other regions of the world. In addition, some of the objectives that should also be pursued by the Economic Partnership Agreement have not been achieved. For example, it has not been possible to deepen regional interdependence between countries in southern Africa and value chains have not been fully developed. The main export products of South African countries are still raw materials and agricultural products. That is why we call in the report for an extension and intensification of the partnership. This requires a partnership on an equal footing that safeguards the interests of both partners. Agreements that promote the deepening of value chains in South African countries are desirable. We also need a comprehensive investment partnership, in particular to support the green transformation of the economy in southern Africa as well as in Europe. And we need a durable raw materials partnership. This report sets out Parliament's requirements in this regard.

Madam President, ladies and gentlemen, Because there have been some irritations about the agreement, it should be stressed in advance that the EU-Angola Sustainable Investment Promotion Agreement (SIFA) is not a classic investment agreement to liberalise market access for foreign investors. It does not contain any provisions on financial support for investments, nor does it contain any . SIFA is a bilateral agreement between the European Union and the Republic of Angola aimed at promoting sustainable investment through greater transparency and more effective procedures. Specifically, the publication of investment laws and conditions, the promotion of the use of single information portals for investors, the simplification of authorisation procedures and the promotion of eGovernment, the improvement of cooperation between investors and the administration, as well as the establishment of contact points and consultations with stakeholders. In addition, obligations in the field of environmental protection and labour law standards are integrated. Both sides undertake not to weaken these standards in order to attract investment. At the same time, both sides should take effective steps to implement international labour and environmental agreements, including the Paris Agreement. The agreement is based on trusting cooperation between the EU and Angola, and its environmental and labour obligations are legally binding. However, the agreement does not contain any hard enforcement mechanisms, because it is a matter of commitment on the part of the parties involved. Successful implementation of the agreement will significantly improve the investment climate by removing barriers that have so far deterred many investors, and thus it will also contribute to fostering the green transformation in Angola. I therefore ask for your consent.

Mr President! With Niger, the third country in the Sahel, which is a strategically important region for us, is now ruled by the military after the coup. What is remarkable, however, is that this coup is well supported in larger parts of the population. And what is also remarkable is that the new military government is also working with really anti-European arguments and that is partly shared by the population. And all this – as you have said on several occasions – in all the commitment we have made there in recent years, and quite extensive commitment, both militarily and humanitarianly, as well as with development aid. That's why, I think, we have to ask ourselves the question in a self-critical way, and I'm going to ask you this now: What did we do wrong? What could we have done better? Or where do you see... – nicht, dass wir jetzt verantwortlich für den Putsch sind, das wäre natürlich absurd – aber was hätte man unter Umständen besser machen können, um insbesondere die Bevölkerung stärker zu erreichen?

Madam President, ladies and gentlemen, Indeed, we face difficult economic and fiscal challenges in Europe. In an environment of rising interest rates and high inflation, a socially responsible climate-neutral transformation of our economy must be promoted. At the same time, it is important to ensure that high inflation does not lead to growing social inequality and impoverishment of broader sections of the population. We need a lasting and significant increase in investments in climate-neutral and digital transformation. This is not just about private investment; We also need a significant increase in public investment. We need new regular revenues to ensure sound public finances. Therefore, the minimum taxation of large companies, a levy on large assets and the financial transaction tax are on the agenda. In all of this, we have to realize: The single market with a single currency requires clear European rules and, above all, European solidarity. This is what we need to do when reforming fiscal rules.

The Commission's proposal, which is also very much based on the positive experience we have had with the Reconstruction Fund. There should be country-specific plans, there should be common criteria, and the Reconstruction Fund also provides for an incentive system so that countries are more willing to do so. Therefore, with reference to the analogy, I would like to ask you once again to give it a little more concrete: By what criteria should the evaluation of the country-specific programmes then be carried out exactly? How is it ensured that this is done in a transparent and predictable way and that the same criteria must apply to all states? It cannot be that there are very different criteria. What about the incentive system? Wouldn't it make sense to say: We are also doing something - certainly reduced in dimension - like a fund to incentivise certain reforms to actually be carried out?

Madam President, Commissioner, ladies and gentlemen! The COVID pandemic, the war in Ukraine and the apparent geopolitical changes are posing new challenges to relations between Africa and the EU. Our trade and economic relations must be put on a new footing. The Economic Partnership Agreements no longer offer sufficient prospects. What is needed is a new partnership on an equal footing that takes the new self-confidence of African states seriously. The central point of reference should be the continental free trade area adopted by the African Union. This is not about free trade in the traditional sense. The continental free trade area is an effort to strengthen intra-African trade, to establish or expand intra-regional value chains between different African countries and thus to provide comprehensive support to the economy on the African continent. A partnership on an equal footing must not be limited to trade. We need more. We need much closer cooperation in agriculture to ensure sustainable food security in Africa. And this must not focus on the sales interests of European agriculture. By the way, strengthening smallholder agriculture in Africa will be central to this. We also need climate partnerships. Many African countries are suffering from the dramatic effects of climate change, which was largely caused by the industrialized states of the North. That is why it is our duty to support African states in combating and adapting to climate change. Both require a significant increase in European investment in African countries. It will be particularly important that investments are made together with African partners in order to increase added value and employment in African countries. In the coming years, it will now be important not only to rhetorically invoke this new partnership on an equal footing at summits and in speeches, but also to implement it in concrete projects.

Madam President, ladies and gentlemen, The Russian invasion of Ukraine will also have profound economic consequences for the EU. That is why it is right to consider suspending the European debt brake in 2023. This also gives us more time for necessary reform debates. First of all, we need a reform of the debt rules. Parliament adopted an important report on this issue in the middle of last year. But we also need a fundamental reform of the European Semester. So far, the semester has been largely ineffective. Structural reforms are being drafted behind closed doors, and then it is in fact up to the Member States whether they ignore this recommendation or perhaps implement it with compromises. The European Semester does not provide effective coordination. We must and can change that! The European Semester must become more democratic. We do not need any further recommendations for neoliberal structural reforms. Instead, we need an economic and fiscal policy that allows for an increase in public investment and promotes social balance.

Madam President, ladies and gentlemen, This is correct: Given the changing geopolitical situation, the EU needs to take more responsibility for its own security. However, the baseline of this report on defence and security policy is questionable. It gives the impression that more European sovereignty means, above all, increasing the EU's military capacity and capabilities as quickly as possible. This is a problematic military logic. I want to make this short of funding. It is rightly stated that the EU countries together spend €395 billion a year on defence. Unfortunately, it is not mentioned that this is about half of what the US spends. And it is also not mentioned that this is more than six times what Russia spends on defense and more than China and Russia spend together. Nevertheless, the report calls for a further increase in defence spending. Certainly, credible deterrence will continue to be important in the future. We see this in the current conflict with Russia. But peace and security in Europe can only be shared. To this end, the security interests of all European states must be taken into account. Of course, this includes Ukraine, but it also includes Russia. This aspect of a Europeanisation of security and defence policy is far too short in the report. This is a pity, because it is precisely in this area that the EU could make a lot of contributions.

Madam President, ladies and gentlemen, The Commission's initiative for a new EU-Africa partnership is right. However, the envisaged partnership also makes it necessary to critically question the EU's previous trade policy with Africa. We know that the so-called Economic Partnership Agreements, which the EU has been pushing for over the last 20 years, have been and still are very controversial in many African countries. That is why only one regional agreement has entered into force. This should be an occasion to reflect intensively on what changes we should strive for here. So far, the agreements are mainly the EU's attempt to enforce free trade. This one-sided approach must be overcome. In addition, we need binding agreements, for example to support each other in the fight against climate change and to ensure food security. For all this, we need a joint investment plan, which on the one hand enables a significant increase in private investment, but on the other hand also ensures extensive public investment in infrastructure.

Madam President, Mrs Lagarde, ladies and gentlemen! The inflation rate has risen significantly. Some of the causes are temporary. As a result, the inflation rate will weaken again over the course of the year. But for the foreseeable future, we will have a much higher level of inflation than in previous years. Some take this as an opportunity to urge the ECB to act vigorously. Many also immediately say that interest rates must finally rise in order for the whole thing to come back into its own. Sounds simple – but the world is not that simple. An adequate response to the rise in inflation also requires addressing a structural deficit of the monetary union. At that time, only monetary and monetary policy was communitized, while economic and fiscal policy was left in national competence. Coined on today: The ECB's room for manoeuvre to fight inflation will be significantly broadened if, as a first step, a reform of the European fiscal and debt rules at the same time ensures that the cyclical capacity of all Member States is maintained and that the necessary increase in investment, in particular to tackle climate change, is ensured.

Madam President, Dear colleagues! Implementation of the Reconstruction Fund is on track. In the first interim balance sheet, we can see that the jointly agreed criteria for disbursing the funds are met. So far, the implementation of the Reconstruction Fund has been a successful example of European solidarity and effective European coordination of investment policy. The Reconstruction Fund thus stands out positively from the hitherto ineffective coordination of economic and financial policies in the EU. Combined with the consolidation of a European investment fund from 2026 onwards, this can become a model for the EU's future economic and financial policies. However, this is only realistic if the Reconstruction Fund continues to be implemented consistently and no lazy compromises are made with Member States. This means that all agreed criteria must be met. And as long as Poland and Hungary cannot explain how they want to implement criterion 10, namely to prevent, detect and correct corruption, fraud and conflicts of interest in the use of the funds, due to a lack of the rule of law, neither country can receive any funds from the Reconstruction Fund.

Mr President, Commissioner, ladies and gentlemen! The EU has set itself the target of reducing CO2 emissions by 55% by 2030 and becoming climate neutral by 2050. This will require a great deal of effort from our society and economy. The climate-neutral transformation requires extensive private and public investment in new products and new production processes. This technology change is not in vain and will require extensive government support. With the new Guidelines on State aid for climate, energy and the environment, the Commission has put forward a proposal for the necessary reform of the State aid framework. I would like to emphasise two aspects in particular: On the one hand, climate-neutral transformation of the economy is certainly the promotion of innovation, but on the other hand, it is also about the market introduction of already known low-carbon processes on a large-scale. In our view, the guidelines make it possible, in principle, to promote both innovation and large-scale market introduction. In terms of climate policy, it is also necessary to drastically reduce the use of fossil fuels. However, we must also take into account that, for example, the use of fossil gas is sometimes still transitional, for example in the field of steel production, as long as there is not enough green hydrogen available. That is why we need the opportunity to promote transitions. However, this should be subject to two conditions: Beneficiaries must set out in binding contracts what transitional steps are foreseen and how and when climate neutrality is achieved through the transition process, and such a transition process must respect the ‘do no significant harm’ principle. correspond. The new guidelines presented by the Commission are an important contribution to achieving our ambitious climate policy objectives. That is why we very much welcome the proposal, and I am convinced that: In the ongoing consultation process, it will also be possible to make some more detailed corrections.

Madam President, ladies and gentlemen, I believe that we urgently need a reform of the fiscal rules before the old rules are reinstated. Why? The suspension of the old rules has allowed us to take vigorous action against the economic consequences of the pandemic. A premature return to the old rules, especially the debt target of 60 percent of GDP, would have catastrophic economic repercussions. Many Member States would be forced to stifle the recovery before it really took off. Urgent public investment could no longer be financed. But we still need an offensive public investment policy to stabilize the recovery, to reduce unemployment and to address the challenges of climate change. Some conservatives, even here in the House, defame such a policy as irresponsible debt-making. That's just nonsense. Government debt is also harmless if the debt service required is in reasonable proportion to revenue. And this can also be ensured with changed fiscal rules.