New cycle in economic governance
The European semester will co-ordinate ex-ante the budgets of the Member StatesMaria Koleva
At a joint press conference in Brussels on Wednesday European Commission President Jose Manuel Barroso and commissioners Oli Rehn and Laszlo Andor presented the prepared by the European Commission Annual study of economic growth. In essence, this is a programming document for overcoming the crisis and accelerating economic growth.
At a joint press conference in Brussels on Wednesday European Commission President Jose Manuel Barroso and commissioners Oli Rehn and Laszlo Andor presented the prepared by the European Commission Annual study of economic growth. In essence, this is a programming document for overcoming the crisis and accelerating economic growth. It contains a set of 10 tasks which Europe is to tackle in 2011.The Annual Study of Economic Growth sets a new stage in European integration, Barroso pointed out in front of journalists. We have undertaken the task to study new opportunities and significantly improve the way we manage and co-ordinate the mutually dependent economies within the European Union. Such is the EU model. Such is our economic governance in action. The annual study is a consistent and comprehensive plan for growth and higher employment in Europe. I am sure that if it is applied in its entirety, Europe will again experience strong economic growth and higher employment, he said.The first 'European Semester' has also started as an expressly new model of forming the economies and the budget policies of the governments of the Member States. In Barroso's words, it will shed light upon the actions of each government.The new cycle in the economic governance in the EU brings together different measures that are important for the more stable restoration after the crisis in the long run. The target is the EU to retain its compatibility and to prepare itself in achieving the tasks included in the 'Europe 202' strategy. Emphasis is laid on effecting a strict budget consolidation, correcting the micro-economic gaps and securing stability to the financial sector. Strong emphasis is also laid on updating of the labor markets, establishing jobs and reforming the pension systems. Growth strengthening will rely on the potential of the single market, private capitals will be attracted to fund developing industries of the future such as 'green' energy and innovative starting companies. Support is given to increasing the investments in large infrastructural projects through draft Euro bonds, for example.For the first time the EU and the euro zone will in advance co-ordinate their budget and economic policies. The Member States and the Commission will jointly and comprehensively discuss macroeconomic stability, structural reforms and growth boosting measures. The dialogue will also continue throughout the spring meeting of the Union in March. It is provisioned the member States to present their programs on stability and convergence and their national programs of the reforms in mid-April in order the Commission to be able to attest them simultaneously. The recommendations of the Commission will be enclosed in the policies and in the national budgets of the 27 countries subject to Union approval. In this way, in June and July there will be specific recommendations for each country to make it possible for them to finalize their 2012 budgets. According to Oli Rehn, the key message of the Annual Study of Economic Growth is that Europe needs both fiscal consolidation and structural reforms to create prerequisites for sustainable economic growth and opening new jobs. Consolidation and growth go hand in hand in present day Europe, said he.Among the priorities in the area of Commissioner Laszlo Andor within the context of the new economic governance are implementation of employment favoring taxation, legislative protection for workers under temporary contracts, opportunities for second source of income for the work force. He placed particular accent upon the requirement for high quality training, support for job seekers or in case of self employment, increasing the participation of elderly workers on the labor market and raising retirement age. In parallel with the instruments implemented to strengthen economic governance in the EU, the Commission also thinks of increasing the amount of the temporary financial stability fund for. Without mentioning the raised amount of the fund, President Barroso pointed out it should be expanded to guarantee the efficient capacity of this mechanism. As of January, better financial regulation will be effected also by the new European supervisory bodies for the banks, insurance and securities and markets, as well as the European Council for Systemic Risk.