Dombrovskis: economic and monetary union more "robust" but social inclusiveness needs work



Shoot Date

06 Oct 2014

Shoot Location

Brussels, Belgium

Production Company


Edited Package
Dombrovskis archives ECON and EMPL hearings John off The new Commission Vice President-designate for the Euro and Social Dialogue, Valdis Dom-brovskis was only 37 when he took over the reins as Prime Minister in 2009, which made him the youngest and eventually longest -serving in Latvian history. He is widely credited with rescuing Latvia from bankruptcy and his push for structural reforms and sound public finances have made the for-mer Soviet Baltic state into one of the fastest growing EU economies and the newest country to adopt the Euro currency. Better coordinating economic, fiscal and labour market policies will be key to Dombrovskis´ brief, as will better oversight of the Stability and Growth Pact and budget coordination within Eu-rozone member states. Dombrovskis expressed quiet confidence that the worst of the economic and fiscal crisis was indeed behind the EU and the focus now had to be more on restoring the social dimension of reforms. ECON and EMPL hearings Dombrovskis on 14:50:00-14.50.26 Today´s economic and monetary union is much more robust to withstand financial and economic shocks but further effort is needed to make it more cohesive, competitive and socially inclusive. We now have a comprehensive cycle of policy coordination, the European Semester, to ensure con-sistent policies throughout the EU. We need to make the most of it to advance structural reforms while paying due atten-tion to the social and employment dimen-sions. Dombrovskis also will be tasked with evaluating Euro area countries in trouble and their potential need of financial support. To date 8 Eurozone countries have required such assistance. Dombrovskis may also be responsible for replacing the EU "troika" oversight by the ECB, Commission and IMF, with what Commission President designate Jean Claude Juncker has described as a "more democratically legitimate and accountable structure." Valdis Dombrovskis on 14:53:22- 14:53:55 I fully subscribe to the commitment of President-elect Juncker that in the future any support and reform programmes goes not only through a fiscal sustainability assessment but through a social impact assessment as well. I do hope that none of our member states will have to resort to such a programme again. While the Troika format has been set up under pressure to help prevent a financial and economic catastrophe, it should be gradually replaced with a more democratically legitimate and accountable structure. Committee hearings John off Dombrovskis said that enhancing the convergence of economic, fiscal and labour markets policies between the 18 Member States that share the single currency would be among his top priorities. He also praised the so-called "six pack" and "two pack" regulations and directives which have strengthened fiscal and economic surveillance not only in the Euro area but among all 28 EU member states. Dombrovskis on 14:51:15 14:51:46 We need to preserve the stability and credibility they have provided to our framework by fully taking into account employment and social and employment implications of our policies. At the same time we have to improve the implementa-tion of the country specific recommenda-tions. Our policy should help Europeans reap the benefits of economic growth to enhance productively and thus sustain higher levels of economic and social welfare.
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