Transcript Annual Growth Survey 2013

Annual Growth Survey 2013
What is the AGS?
• A communication, which sets out the economic and
social priorities for the EU in 2013
• Launches the next European Semester
• Provides guidance to Member States, which they can use
to prepare their national reform programmes
• Includes two annexes, which give more detail on the
macroeconomic context and the employment situation in
the EU
• Accompanied by the separate publication of the Alert
Mechanism Report and Single Market Report
The AGS in context
Budgetary developments in the Euro area
Source: Commission Services
• Economic situation has continued to
deteriorate in 2012 and the social
consequences are being severely felt
• Unemployment is reaching new heights
and the risks of poverty and social
exclusion are rising
• The short-term challenge is to restore the
confidence in EU economies and financial
markets, whilst also carrying out
structural reforms for the medium-term
• Some important action has already been
taken, but it will be crucial to maintain the
pace of reforms, recognising the specific
needs of each Member State
Employment rate and unemployment growth in EU
Source: Commission Services
The AGS priorities
The Commission therefore considers that the EU should focus on
the same priorities as in last year's AGS:
• Pursuing differentiated, growth-friendly fiscal
consolidation
• Restoring normal lending to the economy
• Promoting growth and competitiveness for today and
tomorrow
• Tackling unemployment and the social consequences of the
crisis
• Modernising public administration
Efforts should be concentrated on implementation
Differentiated, growth-friendly fiscal consolidation
• Public finances must be brought back on track to restore
their sustainability
• The pace and composition of fiscal consolidation will be
different for each Member State
• Negative impacts on growth in the short-term can be
mitigated by appropriate measures in expenditure and
revenue of public budgets
• Spending on areas of future growth potential and essential
social needs should be prioritised
• Taxation should be shifted away from labour and towards
areas that are less detrimental to growth
Restoring normal lending to the economy
• Work must continue on restoring the
stability of the financial sector and
improving financing conditions for the
economy
• At the EU level progress must be made
with an integrated supervisory
mechanism and legal framework for
financial institutions
• Member States also have important
roles to play in improving access to
finance, including through promoting
alternative sources of finance
Bank lending to households and nonfinancial corporations, euro area
Source: Commission Services
Promoting growth and competitiveness
• Structural reforms must be reinforced to promote growth
and competitiveness
• Important measures have been taken but more can still be
achieved, for example by:
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increasing investment in research and innovation
improving the business environment
raising educational standards
tapping the potential of the green economy
completing the single market, particularly in services
improving and liberalising network industries
• A lot can be learned from best practice in Member States
and third countries
Unemployment and social consequences of the crisis
• An urgent response is needed, including through:
• - Improving employability by stepping up active labour market
policies, e.g. skills upgrading, job-seeking assistance, support for
entrepreneurship and mobility
• - Simplifying employment legislation
• - Developing flexible working arrangements
• - Ensuring wage developments support job creation
• - Improving connection between education, life-long learning
systems and labour market needs
• Particular attention should be paid to the situation of young
people
• Essential safety nets should be reinforced to prevent poverty and
promote social inclusion
Modernising public administration
• Implementation of all measures depends on effective public
administrations
• Progress is being made but more could be done to improve
public procurement, the digitalisation of public
administration, the quality and independence of judicial
systems and the deployment of EU structural funds
•
Government effectiveness (2010)
Source: World Bank — Worldwide Governance Indicators
Next steps
January
European
Commission
February
March
Debate &
orientations
European
Parliament
Debate &
orientations
Member
States
May
June
July
Proposals for
country-specific
recommendations
Annual
Growth
Survey and
other reports
Council of
Ministers
European
Council
April
Discussion in
Council
formations
Spring EU
summit: overall
guidance
on EU priorities
Autumn:
Monitoring and
peer review
at European level
Endorsement of
country-specific
recommendations
Adoption of National
Reform Programmes
(NRPs) & Stability
and Convergence
Programmes (SCPs)
Autumn:
Implementation at
national level
• Thank you
• For further information contact:
• Unit D1- Europe 2020, Competitiveness and Innovation
• Secretariat General