In response to the difficult economic and financial situation currently affecting Europe and the world, public sector intervention is reassuming a "pivotal role, sometimes taking the form of outright nationalisation," says the European Parliament in a report adopted with 521 votes in favour, 47 against and 55 abstentions.

Expressing concern at the unprecedented level of instability in the European and world markets, the report drafted by Donata GOTTARDI (PES, IT) points out that the crisis in strategic sectors, and especially in the fields of finance and transport, is spurring public investment in takeovers, without care being taken to limit those rescue operations to what is strictly necessary for sustaining and developing the European economy or to ensure they do not respond to national interests only.

Appropriate supervision and sharing the tax burden

The report stresses that it is in the interests of the public, the taxpayer and public budgets to ensure that every intervention and use of public funds for rescuing financial organisations is accompanied by appropriate supervision, concrete improvements in the governance and business conduct of the enterprise or institution, precise limits on the amounts paid to executives and clear accountability vis-à-vis the public authorities.

The European Parliament also believes that rescue packages from the wholesale public sector will have repercussions for public finances and personal incomes, making it necessary for the tax burden to be suitably and equitably spread among all taxpayers. This would entail, on the one hand, the imposition of an appropriate level of taxation on all financial players and on the other, provision for a gradual and sharp reduction in the tax burden on mid to low-level salaries and pensions.

Bring wage increases in line with inflation

There needs to be a common approach on wage policies, which provides for wage increases in line with actual inflation and productivity, says the report, "since fiscal and wage policies are powerful and effective levers on demand and for economic stability and growth".