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Lawmakers Grill French Candidate for European Economic Post Lawmakers Grill French Candidate for European Economic Post
(about 2 hours later)
BRUSSELS — The French candidate for one of Europe’s top economic jobs faced a barrage of criticism during his confirmation hearing on Thursday, as some members of the European Parliament accused him of failing to push necessary reforms in his home country and said he could not be trusted to apply budgetary rules fairly in the European Union.BRUSSELS — The French candidate for one of Europe’s top economic jobs faced a barrage of criticism during his confirmation hearing on Thursday, as some members of the European Parliament accused him of failing to push necessary reforms in his home country and said he could not be trusted to apply budgetary rules fairly in the European Union.
The grilling of Pierre Moscovici, a Socialist who was the French finance minister until this year, was a sign of deepening concern that, if confirmed, he might use a double standard. His critics fear that France might be given leniency in meeting deficit targets while other countries continue to struggle after years of painful austerity in trying to meet budgetary targets.The grilling of Pierre Moscovici, a Socialist who was the French finance minister until this year, was a sign of deepening concern that, if confirmed, he might use a double standard. His critics fear that France might be given leniency in meeting deficit targets while other countries continue to struggle after years of painful austerity in trying to meet budgetary targets.
France, the skeptical Parliament members indicated, had not gone far enough in putting economic reforms into effect — like making its employment law more flexible, opening sectors of its economy to more competition and reducing public spending.France, the skeptical Parliament members indicated, had not gone far enough in putting economic reforms into effect — like making its employment law more flexible, opening sectors of its economy to more competition and reducing public spending.
“Do you really think that you, personally, are the best man for this job considering the fact that your track record on implementing structural reforms has been so terribly disappointing?” asked Cora van Nieuwenhuizen, a conservative Dutch lawmaker, generating applause. “Do you really think that you, personally, are the best man for this job considering the fact that your track record on implementing structural reforms has been so terribly disappointing?” said Cora van Nieuwenhuizen, a conservative Dutch lawmaker, generating applause.
Stoking their skepticism was the announcement a day earlier by the French government that it “rejects austerity” and would not try to meet its European Union-mandated deficit targets for the next three years as it tries to put its listless economy on a path to stronger growth. France has already missed two extensions granted by European officials, who have given France until 2015 to hit the 3 percent target.Stoking their skepticism was the announcement a day earlier by the French government that it “rejects austerity” and would not try to meet its European Union-mandated deficit targets for the next three years as it tries to put its listless economy on a path to stronger growth. France has already missed two extensions granted by European officials, who have given France until 2015 to hit the 3 percent target.
“The French government announced that no further effort will be demanded of the French, and this is my biggest concern,” said Esther de Lange, another conservative Dutch lawmaker. “How are you going to explain to the Greeks, to the Portuguese, to the Irish, even to the Dutch, that they had to take measures and that the French don’t?” she asked.“The French government announced that no further effort will be demanded of the French, and this is my biggest concern,” said Esther de Lange, another conservative Dutch lawmaker. “How are you going to explain to the Greeks, to the Portuguese, to the Irish, even to the Dutch, that they had to take measures and that the French don’t?” she asked.
During his three-hour hearing Thursday morning, Mr. Moscovici, the nominee for the post of commissioner for fiscal and monetary policy, sought to convince the Parliament’s influential Economic and Monetary Affairs Committee that he would be evenhanded in the way he applied the rules. “I am French, I am a Social Democrat,” he said, but “I am not going to use my role to be the ambassador for one country or for one party.”During his three-hour hearing Thursday morning, Mr. Moscovici, the nominee for the post of commissioner for fiscal and monetary policy, sought to convince the Parliament’s influential Economic and Monetary Affairs Committee that he would be evenhanded in the way he applied the rules. “I am French, I am a Social Democrat,” he said, but “I am not going to use my role to be the ambassador for one country or for one party.”
Mr. Moscovici also drew criticism from British lawmakers. Their country does not have the euro as its currency but it is subject to European Union debt and deficit rules, and it has a strong interest in a prosperous and stable Continental economy.Mr. Moscovici also drew criticism from British lawmakers. Their country does not have the euro as its currency but it is subject to European Union debt and deficit rules, and it has a strong interest in a prosperous and stable Continental economy.
“Not looking forwards to Moscovici’s ‘over creative interpretation of the rules’ — isn’t that what caused the EZ crisis?” Kay Swinburne, a British lawmaker with the Conservative Party, wrote on Twitter, referring to the eurozone crisis. “Not looking forward to Moscovici’s ‘over creative interpretation of the rules’ — isn’t that what caused the EZ crisis?” Kay Swinburne, a British lawmaker with the Conservative Party, wrote on Twitter, referring to the eurozone crisis.
Mr. Moscovici did, however, win some plaudits. Sven Giegold, a German lawmaker and member of the Greens, said while following the hearing that Mr. Moscovici “should be given a chance as commissioner for economic and monetary affairs” because the Frenchman was “a convinced pro-European.” Among the nominees available to do the job, “only he would be able to achieve a balance” between spending and economic rigor, Mr. Giegold said. Mr. Moscovici did, however, win some plaudits. Sven Giegold, a German lawmaker and member of the Greens, said that Mr. Moscovici “should be given a chance as commissioner for economic and monetary affairs” because the Frenchman was “a convinced pro-European.” Among the nominees available to do the job, “only he would be able to achieve a balance” between spending and economic rigor, Mr. Giegold said.
The new European Parliament was elected in May, and many of its lawmakers campaigned to make European institutions such as the European Commission far more responsive public demands for jobs and growth. So far, the confirmation hearings have indicated that lawmakers are going to aggressively vet and challenge some of the candidates selected by Jean-Claude Juncker, the new president of the European Commission, the executive arm of the European Union. The new European Parliament was elected in May, and many of its lawmakers campaigned to make European institutions like the European Commission far more responsive to public demands for jobs and growth. So far, the confirmation hearings have indicated that lawmakers are going to aggressively vet and challenge some of the candidates selected by Jean-Claude Juncker, the new president of the European Commission, the executive arm of the European Union.
Parliament does not have the power to reject individual candidates, but must instead approve or reject the entire slate of 27 nominees; the vocal resistance to Mr. Moscovici suggested that the review process could be highly politicized. Jonathan Hill, the British Conservative nominee to become the commissioner overseeing financial markets, faced some tough questions in his hearing on Wednesday about his suitability for the job, and was asked by left-leaning lawmakers to face a second hearing next week.Parliament does not have the power to reject individual candidates, but must instead approve or reject the entire slate of 27 nominees; the vocal resistance to Mr. Moscovici suggested that the review process could be highly politicized. Jonathan Hill, the British Conservative nominee to become the commissioner overseeing financial markets, faced some tough questions in his hearing on Wednesday about his suitability for the job, and was asked by left-leaning lawmakers to face a second hearing next week.
Mr. Hill’s humor appeared to win over many lawmakers on Wednesday. But he disappointed others by not providing many details about how he would oversee the creation of a so-called capital markets union — a plan backed by Mr. Juncker to develop sources of financing other than banks — or how Mr. Hill would continue reform of the banking sector.Mr. Hill’s humor appeared to win over many lawmakers on Wednesday. But he disappointed others by not providing many details about how he would oversee the creation of a so-called capital markets union — a plan backed by Mr. Juncker to develop sources of financing other than banks — or how Mr. Hill would continue reform of the banking sector.
Mr. Hill will be summoned to give additional testimony, possibly on Tuesday, according to the main center-left group in Parliament. Other nominees could also face similar requests. On Thursday afternoon, after the hearing with Mr. Moscovici, representatives of political groups at the Parliament were meeting to decide on any next steps, such as whether to require Mr. Moscovici to return for more testimony. Mr. Hill will be summoned to give additional testimony, possibly on Tuesday, according to the main center-left group in Parliament. Other nominees could also face similar requests. On Thursday afternoon, after the hearing with Mr. Moscovici, representatives of political groups at the Parliament were meeting to decide on any next steps, like whether to require Mr. Moscovici to return for more testimony.
“We believe that he can be a good commissioner but he did not entirely convince us in relation to the content and priorities of his portfolio,” said Elisa Ferreira, a Socialist lawmaker from Portugal. “We believe that he can be a good commissioner, but he did not entirely convince us in relation to the content and priorities of his portfolio,” said Elisa Ferreira, a Socialist lawmaker from Portugal.
Parliament’s vote on the nominees has been scheduled for Oct. 22, just a few days before new members of the commission are meant to take office under the presidency of Mr. Juncker, a former prime minister of Luxembourg.Parliament’s vote on the nominees has been scheduled for Oct. 22, just a few days before new members of the commission are meant to take office under the presidency of Mr. Juncker, a former prime minister of Luxembourg.
A rejection by the Parliament or a delay to the vote because of a stalemate over the nominees would leave the current commission, led by José Manuel Barroso, in place for an indeterminate period of time.A rejection by the Parliament or a delay to the vote because of a stalemate over the nominees would leave the current commission, led by José Manuel Barroso, in place for an indeterminate period of time.
Even as Mr. Moscovici maintained on Thursday that he would work on behalf of the entire European Union, he also appeared to be seeking to assure the French lawmakers at the hearing.Even as Mr. Moscovici maintained on Thursday that he would work on behalf of the entire European Union, he also appeared to be seeking to assure the French lawmakers at the hearing.
“There are rules that do have to be followed,” but “we can perhaps amend things, perhaps we can grant delays, perhaps to France but to other countries as well,” Mr. Moscovici told Bernard Monot, a lawmaker from the French National Front. “There is an entire range of possibilities available to the commissioner.”“There are rules that do have to be followed,” but “we can perhaps amend things, perhaps we can grant delays, perhaps to France but to other countries as well,” Mr. Moscovici told Bernard Monot, a lawmaker from the French National Front. “There is an entire range of possibilities available to the commissioner.”
The French budget deficit is sore topic because of the way France and other big countries, including Germany flouted the rules, known as the Stability and Growth Pact, in the decade leading up to the sovereign debt crisis that nearly destroyed the euro currency union.The French budget deficit is sore topic because of the way France and other big countries, including Germany flouted the rules, known as the Stability and Growth Pact, in the decade leading up to the sovereign debt crisis that nearly destroyed the euro currency union.
Since then, the pact has been reinforced by making it harder for national governments to block a recommendation by the European Commission to impose fines. Even so, the strongest sanction allowed for by the pact — a fine of up to 0.2 percent of a country’s gross domestic product — has never been imposed, because of what budget disciplinarians see as a lack of political will.Since then, the pact has been reinforced by making it harder for national governments to block a recommendation by the European Commission to impose fines. Even so, the strongest sanction allowed for by the pact — a fine of up to 0.2 percent of a country’s gross domestic product — has never been imposed, because of what budget disciplinarians see as a lack of political will.
For France, which made its “no austerity’' proclamation in proposing its 2015 budget on Wednesday, the next stage is for the European Commission to assess that budget, which Paris must submit for scrutiny by Oct. 15.For France, which made its “no austerity’' proclamation in proposing its 2015 budget on Wednesday, the next stage is for the European Commission to assess that budget, which Paris must submit for scrutiny by Oct. 15.
Even if the commission concludes that France is breaking the rules, it would give Paris time to submit a revised budget, and could even grant further extensions before ultimately recommending a fine.Even if the commission concludes that France is breaking the rules, it would give Paris time to submit a revised budget, and could even grant further extensions before ultimately recommending a fine.