MEPs have strongly criticised the EU's concentration on cutting budget deficits and fighting inflation at the expense of dealing with Europe's unemployment and social problems.
For three hours yesterday the European Currency Commissioner and an Italian Treasury Minister, representing the EU Presidency, heard MEPs warn that the rigid implementation of the Maastricht criteria in preparation for Economic and Monetary Union was doing considerable damage to the EU's credibility with the public in member states.
"Unemployment and the deterioration in the social situation are the fault of the Maastricht criteria imposing a policy which cannot be successful," said Mr Sergio Ribeiro, a Portuguese member of the Left Group. "Discipline and austerity cannot bring about employment," said Mr Roberto Speciale, an Italian Socialist Group member.
Mr Pat Cox (ELDR, Munster) strongly criticised the European Council of Finance Ministers (EcoFin) for not including a commitment to higher employment, social protection and living standards in its recommendation to next weekend's Florence summit.
He said there was a credibility gap at the heart of the EU's economic policy which was "measured most starkly by the 18 million unemployed and up to 50 million suffering from social exclusion and poverty."
A number of MEPs, however, defended the EU's approach, saying that fulfilling the Maastricht criteria would create the conditions for economic growth that would bring increased employment.
Replying to MEPs' questions, the chairman of the European Monetary Institute, Mr Alexandre Lamfalussy, said that while it was tempting to blame the preparations for EMU for creating unemployment, this was wrong.
"The trend towards high unemployment started in the early 1970s with the oil shock, increased towards the end of the 1970s and increased even more in the early 1980s. This was before we were even talking about monetary union or Maastricht. We should look at the real facts and not try to see a cause and effect where there is none."
Mr Giorgio Macciotta, the Italian junior Treasury Minister, said that the realisation of EMU would create the conditions for a new economic upturn that would make Europe more competitive compared to other developing areas in the world. "It will in fact allow us to create more jobs."
After the debate the parliament approved a number of reports on the preparations for EMU.