15th EPP Congress
Our future: A strong Europe
17 - 18 October 2002
Estoril - Portugal

Resolution adopted by the 15th EPP Congress
Principles for a European Economic Constitution


The credibility of the Single Currency and the guaranteed basic conditions for growth are two positive results of meeting the basic conditions for creating a European Constitution.
A European Constitution should be rigorous enough to silence opportunistic voices at national level, but at the same time flexible enough to adapt to new medium- and long-term needs.

Stability and Growth Pact

The Achilles heel of the actual construction of the Stability and Growth Pact is that sanction requires the application of qualified majority voting by EU Member States. This could determine the possibility of undesirable co-operation (or, at best collusion) between various Member States, with a tendency to reciprocate favours. The credibility of the SGP in its current form is seriously undermined by its unconstitutional elements and not by its rigidity. Its structure is in fact changeable from one day to the next, depending upon majority and national interests, despite being bound to the political and electoral cycles of individual Member States.
In the current situation of economic recession it is absolutely necessary to strictly maintain the criteria established in the Stability and Growth Pact which would facilitate the task of the monetary authority to maintain price stability as a means of favouring investment. This would, at the same time, help a reduction in public debt, which would in turn prepare public finances to support the impact at budgetary level eminent in the short term with an increasingly ageing population.

The Market

The Single Market ensures free movement of goods, services, capital and people. In the framework of a social market economy, we support increased liberalisation of the European economy in order to complete the Single Market.
Any barrier to trade must be prohibited. Member States may introduce restrictions only when these are in the public interest. Any restriction must first be ratified by the European Commission after consultation with the Council of Ministers.
The Single Market should operate according to the principle of mutual recognition between national legal systems. Harmonisation of legal systems will be confined to that strictly necessary for the purpose of rendering effective mutual recognition and preventing the distortion of competition in accordance with the principles of proportionality and subsidiarity.

Stock Markets, Finance and Regulation of Companies

The regulation of financial markets has to be governed by the criteria of transparency, responsibility and consumer protection. Decisions that relating to implementing measures may be delegated to the European Commission, the central authority and national supervisory authorities to ensure complete respect for the powers assigned to the legislative authorities.
The regulation of listed companies is based on the principle of proportionality between the risk capital held by investors and the locus of decision-making powers. Equality of treatment of minority shareholders is guaranteed in the event of transfer of control.

Public Utilities

An integrated EU utilities market is essential to ensure the future supply of goods and services at reasonable prices to Europe’s citizens and businesses. In order to avoid unfair competition, the liberalisation process must be fair and balanced across all Member States.