28 November 2012

Priorities at EU level - Annual Growth Survey 2013 - Charting the course to recovery

It is the basis for building a common understanding about the priorities for action at the national and EU level as the EU seeks to return to a path of sustainable growth and job creation. The Annual Growth Survey should feed into national economic and budgetary decisions, which Member States will set out in Stability and Convergence Programmes (under the Stability and Growth Pact) and National Reform Programmes (under the Europe 2020 strategy) in April. These programmes will form the basis for the European Commission's proposals for country-specific recommendations in May.

Key messages

The EU economy is slowly starting to emerge from the deepest financial and economic crisis in decades. However, although important action has already been taken and positive trends are beginning to emerge, we remain some distance from a recovery. To restore confidence and return to growth, it is essential that Member States maintain the reform momentum, and for this reason the Commission recommends focusing on the same five priorities that were identified in last year's Survey:

• 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.

Press release

Annual Growth Survey 2013

FAQs

Šemeta/Andor video 1 / Šemeta/Andor video 2

Commenting on the priorities, José Manuel Barroso, President of the European Commission, said: "It is crucial to stick to our strategy of growth-friendly fiscal consolidation, economic reforms and targeted investments. This is the only way to restore confidence and create lasting growth. I understand that these reforms are difficult, painful and may have social consequences, which is why the Commission is doing its best to make the recovery as job-rich as possible. The Annual Growth Survey provides Member States with policy guidance, ensuring that the burden of reform is shared fairly and that the most vulnerable are protected."

The main message of the AGS this year is that while EU policies are beginning to show results – deficits are coming down, tensions in financial markets are easing and there are signs that competitiveness is improving in some Member States – continued reform is needed to generate sustainable growth and jobs. That is why the Commission considers that the five priorities outlined in last year's AGS (see MEMO/11/821) remain valid. The five priorities are: 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; and modernising public administration.

Each of the five priorities is focused on delivering growth and jobs, with a special emphasis on fairness. There is no "one-size-fits-all" agenda to boost growth and jobs, but there are common goals and a range of reforms to consider. Targeted support for research in the public and private sectors, better performing education and training systems to raise overall skill levels, and a simpler legal regime for business start-ups – all of these measures can help to boost competitiveness and therefore growth. The Single Market and the further development of network industries (transport, energy and internet infrastructures) also offer opportunities for businesses to develop and for consumers to benefit from better services and products.

The adoption of a Compact for Growth and Jobs by the Heads of State or Government at the June 2012 European Council should galvanise the efforts of the EU and Member States to mobilise the growth levers they have at hand - from the implementation of the Single Market Acts to the more targeted use of EU Structural Funds. The Commission has also recently proposed a strategy to improve the functioning of energy markets, as well as measures for a reinforced industrial policy. Moreover, finding an overall agreement on the EU's multi-annual financial framework for 2014-2020 will be essential in restoring growth and competitiveness across Europe and in achieving our Europe 2020 goals.

Next steps

In the coming weeks and months, the different Council formations will discuss the AGS and report to the March European Council so that it can adopt appropriate policy guidance for the Member States. This guidance should be incorporated into Member States’ national budgetary and economic plans, which are sent to the Commission in April. Having analysed these programmes, and with the AGS priorities in mind, the Commission will issue Country-Specific Recommendations in May, in time for these to be endorsed by the June European Council. The Member States should then incorporate this policy guidance into their annual budgets and sectoral legislation.

Press release

Speech by Vice-President Rehn

© European Commission