The need for decisive European governance to counter the problems afflicting Greece, demonstrate the European Union's ability to solve its internal difficulties and up tighten economic governance was emphasised by members of the European Parliament's economic affairs committee on March 22 2010.

The meeting, although part of the European Parliament's regular economic and monetary policy dialogue with the ECB and the Eurogroup, was dominated by the Greek debt crisis, according to a European Parliament media statement.

Outlining his programme for the next 30 months, Eurogroup President Jean-Claude Juncker emphasised the need for the Eurogroup to vet national budget plans, to pursue the exit strategy, and to expand economic governance. 

European Central Bank President Jean-Claude Trichet outlined how he sees the economy evolving in the months ahead and underlined his faith in the stability and growth pact rules and the system of peer pressure among European governments, the statement said. 

Details, leadership and clarity on Greece

French centre-right MEP Jean-Paul Gauzès criticised the way in which the EU was dealing with the crisis affecting Greece. 

"Citizens do not know what to make of the unclear messages leaders are sending," Gauzès said. 

"It is difficult for me to explain that what we are doing is making great declarations which will hopefully bear fruit in two years' time.  The EU may actually be in a worse situation today than it was during the global financial crisis", he said, arguing that more decisive and clear action is desperately needed. 

Many other MEPs asked Juncker and Trichet for detailed ideas on the Greek crisis and improving economic governance. 

German socialist MEP Udo Bullmann asked about using the Treaty provisions on granting exceptional assistance to Eurozone countries, while German Greens MEP Sven Giegold asked for details of how the "culprits" would be made to shoulder the Greek problem.  Rodi Kratsa (EPP, EL), asked how the ECB's support programme to Greece would continue.  

Juncker refrained from detailing instruments to help Greece, saying that current commitments from EU member states were enough for the moment.

Trichet added that financial backing for Greece must take the form of a loan, not a subsidy, and should be provided only if worsening conditions cause a problem for the eurozone as whole.  Replying to Kratsa, he said that the ECB will continue monitoring developments in Greece, but that he had faith in the country's ability to recover.

European economic governance

Juncker acknowledged that wider and tougher economic governance is needed.  Trichet, by contrast, advocated using the stability and growth pact (SGP) rules, rather than inventing new instruments.  

"How can you be so convinced that peer pressure and the current SGP rules will be enough?" asked French liberal MEP Sylvie Goulard,  reflecting a widespread preference for strengthening the SGP and imposing tougher rules.

"Why is it understandable for EU member states to accept binding conditions from the IMF but not from the EU?", asked Dutch liberal Sophia in 't Veld.  

"Member States' fiscal policies must be monitored more rigorously", Bullmann said. 

Nikolaos Chountis (GUE/NGL, EL), seriously doubted the SGP's usefulness as an economic co-ordination tool.

"How can we even start talking about a single, common economic policy if we have such great differences in competitiveness levels between member states?", asked  Pascal Canfin (Greens/EFA, FR).  Juncker agreed that it was important to tackle this, adding that it would be one of his priorities as Eurogroup President.

A second hearing, specifically on the Greek crisis, will take place on April 14 2010,  with Eurostat officials and representatives of the investment banking sector expected to attend.