The Committee on Economic and Monetary Affairs adopted
an own-initiative report by Pervenche Berès (S&D, FR) on
the European Semester for Economic Policy Coordination. The report
follows on from the Commissions communication entitled
Annual Growth Survey: advancing the EU's comprehensive
response to the crisis.
Members consider that the current stage of the crisis
calls for strong and ambitious answers. They consider that, until
further notice, the European Semester is the valid framework for
the implementation of the EU strategy and for effective economic
government. They are convinced that the introduction of the
European Semester and the enhanced coordination of economic and
budgetary policies should leave enough scope and flexibility to the
EU Member States to pursue an effective budgetary, economic and
social strategy, appropriate in accordance with the EU 2020
strategy, geared to distribution and development and providing an
adequate level of public services and infrastructure for EU
citizens.
The report reiterates that Member States should regard
their economic and fiscal policies as a matter of common
concern and that the economic pillar of Economic and Monetary
Union, including its fiscal dimension, must therefore be
strengthened through more coordination in the introduction and
implementation of fiscal measures as well as an effective fight
against tax fraud and tax evasion and the phasing-out of existing
detrimental measures;
(1) Role of the Commission: Members note that the European Semester has been
established to ensure sustained convergence of the economic and
fiscal performance of the Member States, achieve closer
coordination of economies and overcome the sovereign debt crisis
and that the Annual Growth Survey (AGS) has been established as the
initial basic document of the cycle.
Lessons from the first cycle: the report notes that the quality of National Reform
Programmes under the first European Semester varies greatly
regarding concreteness, transparency, feasibility and
comprehensiveness. It calls on the Commission to:
invite Member States to upgrade the quality and
transparency of their contribution and to elevate the National
Reform Programmes of best quality to the standard format for future
European Semesters;
ensure that the national policies and targets
announced in the National Reform Programmes together add up to a
level that is sufficiently ambitious to reach the EU 2020 headline
targets.
Annual Growth Survey: Members consider that the AGS should be in line
with: i) the EU 2020 strategy, ii) the integrated guidelines (broad
economic policy guidelines and employment guidelines), and iii)
specific Council agreements regarding the euro area or the Union as
a whole such as the Euro Plus Pact.
The report calls on the Commission to reflect better
the comprehensive multidimensional (smart, sustainable and
inclusive) approach of the EU2020 strategy in the benchmarks used
to assess the progress made by Member States and to issue
country-specific recommendations accordingly. It requests that the
AGS be transformed into Annual Sustainable Growth
Guidelines (AS2G), focusing on enhancing sustainable
growth.
It calls on the Commission to:
when drawing up the Annual Sustainable Growth
Guidelines, to draw upon a wide range of scientific expertise to
the greatest extent possible and to take relevant recommendations
of the European Parliament, Member States and local and regional
governments into account;
assess clearly, in the Annual Sustainable Growth
Guidelines, the main economic and fiscal problems of the EU and
individual Member States, to propose priority measures to overcome
those problems;
identify the initiatives taken by the Union and the
Member States to support enhanced competitiveness and long-term
investment, to remove obstacles to sustainable growth, to achieve
the targets laid down in the Treaties and the current EU 2020
strategy, to implement the seven flagship initiatives and to reduce
macroeconomic imbalances;
ensure that policy guidance for fiscal consolidation
and structural reforms is consistent with the EU 2020 strategy for
growth and jobs.
Country-specific
recommendations:
the Commission is invited to:
ensure greater comparability of the National Reform
Programmes (NRPs) and establish common benchmarks to assess the
Programmes;
present its recommendations to the European Parliament
at an appropriate time, once the analysis of the NRPs and SCPs
(Stability and Convergence Programmes) has been completed, and to
highlight the potential cross-border spill-over effects especially
within the eurozone;
organise a hearing with the aim of providing
information on the yearly monitoring events announced in the
various flagship initiatives;
step up the role of the macroeconomic dialogue so as
to improve the interaction among those responsible for wage
development, economic, fiscal and monetary policy.
Members call on the Council to come to Parliament in
July to explain any significant changes it has made to the
Commissions proposed country-specific
recommendations.
(2) Role of the European Parliament: Members recall that the parliamentary debate on
economic policy guidelines is the cornerstone of any democratic
system. They consider that Parliament has to become a fully fledged
partner in the macroeconomic dialogue.
Expressing their concern regarding the democratic
legitimacy of the introduction of the European Semester, Members
take the view that the European Parliament should be recognised
as the appropriate European democratic forum to provide an
overall evaluation at the end of the European Semester. They want
Parliament to organise each year, from 2013, prior to the Spring
European Council each year, an interparliamentary forum at the
European Parliament for members of the competent national
parliamentary committees.
The report notes that the crisis and the developments
especially inside the euro area call for an upgrading of the
European dimension of the economic policies of its Member States,
especially within the eurozone. In this context, Parliament would
need to adapt its structure and working methods to the
latest developments within the Council and the Commission on the
eurozone structure. Members warn against the establishment of any
practice that lacks parliamentary approval at the European or
national level and underline the need for country-specific
recommendations to be based on democratic procedures. Highlighting
the need for upgrading the parliamentary dimension in parallel
to the Council one, Members ask that: i) the Parliament votes
before the Spring Council on the Annual Sustainable Growth
Guidelines with amendments proposals to be submitted to the
European Council; ii) the Annual Sustainable Growth Guidelines to
be subject to a codecision procedure that should be introduced by
the next Treaty change.
(3) Role of the Council:
Members call on the European Council to invite the President
of the European Parliament to participate in its meetings on the
European Semester. They call on the Council and the Commission to
report to it with an exact overview of actions and measures in the
first few weeks of each year on the developments and successes of
the previous European Semester.
Member States are invited to provide information which
is as detailed as possible on the measures and instruments provided
for in the national reform programmes to attain the national
objectives set, including the deadline for implementation, the
expected effects, the potential spill-over effects, the risks of
unsuccessful implementation, the costs and, if applicable, the use
of EU Structural Funds.
The report invites the Council to strengthen the
macroeconomic dialogue, in particular by establishing
corresponding macro-dialogues at national level, and considers it
to be of major importance to include in the constant dialogue
between European Institutions the involvement of the European
Central Bank.
(4) Sectoral contributions to the European
Semester: Members consider that, in
the context of the European Semester, Member States should be
encouraged to attach special importance to specific issues,
such as facilitating young peoples access to education,
guidance and training and preventing early school-leaving,
promoting lifelong learning, promoting employment and reducing
unemployment, especially among young people, promoting integration
of older people into the labour market, combating undeclared work,
facilitating reconciliation of work and family life and improving
childcare facilities.
The Council and the Commission are invited to assess
comprehensively whether the measures proposed in national
programmes to combat poverty and social exclusion and to
increase employment levels are in line with the Europe 2020
objectives. They call on Member States which have not set national
targets, or which have not sufficiently committed themselves to
achieving the employment rate in Europe for women and men of 75% by
2020, to undertake to pursue this objective.
Members declare their readiness to engage in a regular
policy dialogue and exchange of views with national
parliaments and other relevant stakeholders, including the social
partners, business sector and NGOs, on the employment and social
aspects of Europe 2020 and the European Semester.
Lastly, deploring the cut in public spending and
investment in the field of education observed in many national
budgets, Members re-emphasise the need to prioritise public
investment in sustainable growth-friendly areas such as R&D
and education.