In a rare show of cross-party unity, MEPs issued a joint statement urging EU leaders to embrace the need for "incentives and sanctions" in implementing the new economic strategy, dubbed 'Europe 2020'.
The move came as diplomats met in Brussels yesterday (11 March) to prepare for a crucial summit of EU leaders scheduled for the end of the month. Governments will have to agree national targets for boosting growth and jobs but some are reluctant to give Brussels the power to punish failure.
The Europe 2020 plan is the successor to the so-called Lisbon Agenda which is widely seen as having fallen short of its goals due to loose monitoring and enforcement of targets.
Joseph Daul, leader of the European People's Party, Martin Schulz, leader of the social democrats, and liberal leader Guy Verhofstadt want EU leadersto abandon the open method of coordination, which uses peer pressure to ensure governments hit their targets, "in favour of stronger instruments".
They say the European Commission should use "all the relevant legal bases in the new Treaty to improve economic coordination and oversee the implementation of national action plans", including the use of incentives and sanctions where appropriate.
"Furthermore, the new governance structure should ensure greater coherence between the new 2020 strategy, the Sustainable Development Strategy and the Stability and Growth Pact.Member States must, however comply with the criteria of the SGP," political group chiefs said in a joint text.
The three group leaders stressed that small and medium sized enterprises will remain the key to job creation and economic growth in the Union over the next ten years given their potential for innovation and individual entrepreneurship.
"But the EU must assist the process by ensuring that they are able to benefit fully from research and innovation policies and further reducing unnecessary administrative burdens," they said.
The statement came as the European Parliament voted overwhelmingly in favour of making EU funding conditional on hitting the targets agreed under the Europe 2020 plan.
In a resolution agreed by MEPs, the Parliament also said there should be mechanisms to ensure the stability of the Euro, and grater supervision for financial institutions.
