The European Parliament has called for the rapid establishment of a redemption fund based on the proposal by the economic advisers to the German government to help the bloc's economic recovery.
In a resolution passed on Thursday, the European lawmakers also urged to introduce project bonds, prepare rapidly to introduce stability bonds, and a financial transaction tax at European level.
The resolution insists that economic recovery requires specific measures to promote solidarity, employment and growth.
The newly-agreed governance treaty was largely unnecessary to emerge from the crisis, according to the European Parliament. It must be made consistent with the economic governance "six pack," and backed by immediate measures to address the Eurozone's short-term constraints, said the resolution. MEPs were nonetheless pleased that the new treaty includes many of the proposals made by their representatives.
The resolution spelling out the European Parliament's priorities was passed by 443 votes to 124 with 75 abstentions. It followed Wednesday's debate with European Council President Herman Van Rompuy and Commission President José Manuel Barroso on the informal summit outcome, a debate dominated by calls from across most of the political spectrum for action to restore growth and reduce unemployment.
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 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.
The treaty, as agreed by the heads of state at the January 30 European Council informal summit, will now go through the normal ratification processes in the Member-States for it to come into force.
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Market Analysis
June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.