This Wednesday and Thursday the first out of five short plenary sessions took place in the European Parliament in Brussels. Its agenda included the conclusions of the informal European Council meeting, sanctions on Iran, assessment of the Russian Duma elections (this issue is to be voted in the next session in Strasbourg). MEPs also voted on sanctions against repressive regimes, fighting violence against children and women, doping, budgetary control of humanitarian aid, etc. 

MEPs assessed the agreement on fiscal stability

Despite the national strike that paralysed Brussels on 30 January, EU leaders still gathered to the informal European Council meeting. It was dedicated to negotiations on an agreement on a Fiscal Stability Union, which was not signed by the United Kingdom, and also, in a surprise move, by the Czech Republic. A new cross-border agreement to be signed by the remaining 25 EU countries obliges states to adopt a balanced budget law and establish automatic adjustment mechanisms at the national level, if the deficit limit is exceeded. The state budget must be balanced or in surplus, and annual structural budget deficit must not exceed 0.5 percent of GDP. Guy Verhofstadt, President of the ALDE Group in the European Parliament, was one of the four MEPs who were delegated to participate in the negotiations on the new fiscal pact. The leader of the Liberals, together with his colleagues Elmar Brok (European People`s Party, Germany) and Roberto Gualtieri (Socialists and Democrats, Italy), expressed a lot of criticism for the draft proposal, mainly due to the lack of clear orientation to economic growth.

"The new treaty consolidates fiscal stability, however it does not mention the other side of the coin, which is solidarity and investments, which could create new jobs and generate growth. EU leaders must finally act, not only create new documents," said Guy Verhofstadt. 

On Wednesday MEPs together with European Commission and Council leaders held a debate on the results of the summit, and presented the resolution spelling out the EP`s priorities, which was passed with a vast majority, on promoting economic growth and employment.  MEPs stressed that the EU fiscal policy coordinating agreement must be consistent with EU law, as well as added new emergency measures, such as the bailout fund, project bonds and a financial transaction tax. The resolution says that the final treaty text agreed by heads of state is a significant improvement on earlier versions and that it takes account of MEPs` insistence on the need to focus more on growth as well as fiscal restraint and to work within the normal EU system wherever possible. The resolution also welcomes that the risk of a two-speed EU was lessened and that there will be more parliamentary oversight than initially envisioned. Nonetheless, it would have been better to have reached an agreement under normal EU law, stresses the resolution, reiterating an argument constantly aired by MEPs since the idea of a separate treaty was first mooted. 

Sanctions on Iran

On Wednesday the High Representative of the Union for Foreign Affairs and Security Policy Catherine Ashton discussed with MEPs the sanctions imposed on Iran by the EU. On Thursday MEPs adopted a resolution supporting the EU Foreign Ministers` decision to apply an embargo on Iranian oil imports and requiring an urgent stop of Iran`s nuclear programme. The EP also called for negotiations to resolve the conflict and try to minimise the damage for ordinary citizens. MEPs are conscious about the impact of sanctions on EU oil import and call on the Council to take measure to compensate losses.

"Sanctions should only target those responsible for the nuclear programme and not affect the civilian population. A dual track approach is key," said L. Donskis` colleague from ALDE group, MEP from the Netherlands Marietje Schaake. Another ALDE representative from the Netherlands, Hans van Baalen, added that "the resolution is the first step to put real pressure on Iran. However if diplomatic efforts fail, then additional measures must be considered alongside the oil embargo."

Currently, the EU buys one-fifth of total exports of Iranian oil. Greece is the most dependent EU country on oil from Iran, importing about one-third of its oil supply from Iran.