European semester 2012:Country Specific Recommendations

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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

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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)

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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, …)

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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

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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

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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

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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

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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

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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 BankingHousing 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

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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 competitivenessReinforce 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

SI

SK

Foster employmentSustainability of public finances

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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

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For more information

• http://ec.europa.eu/europe2020/index_en.htm