European semester 2012:Country Specific Recommendations
2
30 May package
• - « Chapeau » Communication on Action for Stability, Growth and Jobs
• - 27 Country Specific Recommendations + 1 for Euro-area
• - 27 analytical Staff Working Documents + 1 for Euro-area
• - 12 In-depth studies (under new Macroeconomic Imbalances Procedure)
• - 2 Recommendations to bring DE and BG out of EDP
• - 1 Recommendation to lift HU Cohesion Fund suspension
• - 27 « thematic fiches » comparing Member States’ performance
3
Action for stability, growth and jobs
• EU-level action for growth:
• - Europe 2020 strategy
• - Economic and Monetary Union (SGP, financial backstops, banking sector, deepened EMU)
• - Internal Market (EU patent, services directive, Single Market II proposal)
4
Action for stability, growth and jobs
• - Human capital (job-rich recovery, skills, mobility)
• - External sources of growth (FTA)
• - EU funding of the growth that Europe needs (MFF, structural funds, project bonds, EIB capital increase, …)
5
Action for stability, growth and jobs
• Member State level action for growth:
• - National reform programmes, end April 2012;• Reports from MS on national consultation process:
- AT, SE, BE, FR, NL, BG, CY, DK, EE, HU, LU, SK, PL, RO reported to have had a formal and apparently good consultation process. For AT, SE, BE, FR, NL contributions from social partners/stakeholders are annexed to the NRP
- LT, SI, FI seemed to have only had a reduced consultation process- CZ, DE, UK seemed to have had no formal consultation process (but may have
informal ones)- ES, MT had no consultation process
• - Stability or Convergence programmes • - Commission Country Specific recommendations
6
Action for stability, growth and jobs
• 2012 Country Specific Recommendations – overview
• 1) Pursue differentiated growth-friendly fiscal consolidation:
• - Deficits are falling, but:• - Improve growth-friendliness of fiscal consolidation;• - Use available fiscal space in countries without excessive
deficits• - Pursue pension reform• - Shift tax burden from labour to environment and
consumption, reduce tax exemptions• - Fight shadow economy
7
Action for stability, growth and jobs
• 2) Restore normal lending to the economy:
• - Complete restructuring of banking sector, while avoiding excessive deleveraging
• - Promote access to finance for SMEs
8
Action for stability, growth and jobs
• 3) Promote growth and competitiveness:
• More efforts are needed to:• - Open up services sector and public procurement
markets• - Improve performance of network industries• - Improve business environment• - Promote R&D investment and innovation• - Take steps to meet the 2020 energy targets
9
Action for stability, growth and jobs
• 4) Tackle unemployment and social exclusion:
• - Fight youth unemployment• - Reduce early school leaving, improve training and
develop apprenticeships• - Increase labour market participation (e.g. of women,
older workers, vulnerable groups)• - Align development of wages with productivity
10
Action for stability, growth and jobs
• 5) Modernise public administration:
• - Improve administrative capacity • - Enhance efficiency of civil justice systems (backlogs,
length of judicial proceedings)• - Improve quality of services (eg through e-
government) • - Tackle corruption
11Note: Recommendations proposed by the Commission in May 2012 for 2012-2013. For IE, EL, PT and RO, the only recommendation is to implement existing
commitments under EU/IMF financial assistance programmes. More information at: http://ec.europa.eu/europe2020/index_en.htm
EU recommendations for national action in 2012/13
Soundpublic
finances
Pensionand
health systems
Fiscal framework Taxation Banking
Housing market
Access to finance
Network industries
Competition in service sector
Public services
and regulation
R&D and
innovation
Resource efficiency
Labourmarket
participation
Active labourmarketpolicy
Wagesetting
mechanisms
Labour market
flexicurityEducation
ATBEBGCYCZDEDKEEESFIFRHUITLTLULV 0MTNLPLSESISKUK
Public finances Growth enhancing structural reformsFinancial sector Labour market
12
Commitments under the Euro Plus Pact
Note: this table summarises commitments taken by Member States participating in the Euro Plus Pact since Spring 2011.
Foster competitiveness Reinforce financial stability
Wage setting mechanisms
Public sector wage
developments
Competi-tion in
services
Education, R&D,
innovation
Businessenviron-
ment
Labour market
flexicurity
Labour participation
Undeclared work
Life-long learning
Lower labour taxes
Partici-pation of 2nd
earners
Align pensions to
demography
Incentives for older workers
National fiscal rule
National legislation for banking resolution and
other financial stabilisation measures
AT
BE
BG
CY
DE
DK
EE
EL
ES
FI
FR
IE
IT
LT
LU
LV
MT
NL
PL
PT
RO
SISK
Foster employment Sustainability of public finances
13
Are we likely to meet our targets for 2020?
EMPLOYMENT 75% of the population aged 20-64 should be employed
INNOVATION 3% of the EU's GDP should be invested in R&D
CLIMATE / ENERGY A reduction of CO2 emissions by 20%
A share of renewable energies up
to 20%
An increase in energy efficiency
by 20%
EDUCATION The share of early school leavers should be under 10%
At least 40% of the younger generation should
have a degree or diploma
POVERTY 20 million fewer people should be at risk of poverty
14
For more information
• http://ec.europa.eu/europe2020/index_en.htm