The European Parliament is undergoing significant changes in terms of political groups and leadership, with the first constituent plenary session scheduled for 16-19 July. The new parliament is expected to be shaped around the central European People’s Party group, along with its coalition partners including the Socialists & Democrats, green, and liberal allies. However, the far-right presence in the parliament is gaining strength, which introduces fresh uncertainties and could affect the development of financial policies over the next five years. The desire among lawmakers is to focus more on enforcement and implementation rather than adding new regulations, but there is a lack of consensus among the political groups on how to boost long-term economic growth.
Researchers from the Centre for European Reform noted that Europe’s poor economic performance is attributed to low productivity, lack of financing for high-potential businesses, and barriers for innovative European firms to scale across the Union. They also pointed out that populist and far-right parties are likely to hinder necessary reforms, such as strengthening the Capital Markets Union. The Parliament has important tasks on its agenda, including the digital euro project and revising EU rules on payment services to make online platforms liable for payment fraud. The newly formed economic and finance committee in the Parliament will play a crucial role in shaping these policies. While over 25 full members of the committee are expected to return for another five years, several notable figures such as Dragoș Pîslaru and Marek Belka were not re-elected.
Among the newcomers and incumbents to watch in the economic and finance committee are several notable MEPs. Sophie Wilmès from Belgium, who previously served as the country’s prime minister, is expected to play a significant role in shaping EU policy. João Cotrim de Figueiredo, a businessman and politician from Portugal, also brings a unique perspective to the committee. Pasquale Tridico from Italy has a background in economics and has been involved in significant pension reforms in the country. Fabio De Masi from Germany is another key figure with expertise in finance and corruption investigations. Lastly, Sérgio Gonçalves from Portugal is part of a new generation of Portuguese Socialists in Brussels and Strasbourg.
These MEPs and others are expected to influence the economic and finance policy direction in the European Parliament, addressing issues such as economic growth, financial regulations, and digital payment systems. The composition of the parliament, with a mix of centrist, far-right, and other political groups, will shape the debates and decisions on financial matters over the next five years. As the parliament convenes for its first committee meetings in July, the focus will be on implementing existing regulations, supporting innovative businesses, and addressing challenges such as low productivity and lack of financing for high-risk ventures. The new leadership and members of the economic and finance committee will play a crucial role in shaping the future economic policies of the European Union.
