The Council also discussed the follow-up to the December European Council as regards the strengthening of EU economic governance and the establishment of a new mechanism to ensure the stability of the Euro Area.
Economic governance was cited as a key priority by the Hungarian Presidency, which presented its work programme to the Council. The presidency stated its goal of reaching agreement on six legislative proposals on economic governance by the end of March.
Annual Growth Survey
The Council took note of a presentation by the Commission on the main elements of its Annual Growth Survey published on 12 January (doc. 18066/10). It held an exchange of views.
The Commission's survey outlines priority actions to be taken by member states in order to ensure better-coordinated and more effective policies for putting Europe's economy on a path to sustainable growth.
It sets out priorities in three main areas:
– enhancing macroeconomic stability: implementing budgetary consolidation, correcting macroeconomic imbalances and ensuring the stability of the financial industry;
– structural reforms for boosting employment: making work more attractive, reforming pension systems, getting the unemployed back to work and balancing security and flexibility on labour markets;
– growth-enhancing measures under the "Europe 2020" strategy for jobs and growth: tapping the potential of the EU's single market, attracting private capital to enhance growth and creating cost-effective access to energy.
The Commission's overall assessment and view of the main challenges was broadly shared by delegations. The Council asked the Economic and Financial Committee and Economic Policy Committee to work intensively on the dossier. The Presidency's intention is for the Council to adopt conclusions at its meeting (Economic and Financial Affairs) on 15 February.
The Annual Growth Survey constitutes, along with review of draft national reform programmes, first steps in implementation of the so-called "European Semester", which involves simultaneous monitoring of the member states' budgetary policies and structural reforms, in accordance with common rules, during a six-month period every year.
At its meeting on 24 and 25 March, the European Council is due to provide guidance to the member states for finalisation of their stability and convergence programmes (budgetary policies) and national reform programmes (structural reforms).
The European Semester is implemented for the first time this year as part of a reform of EU economic governance.
National reform programmes
The Council discussed, on the basis of an assessment by the Economic Policy Committee, draft national reform programmes (NRPs) presented by the member states. Ministers committed themselves to rectifying difficulties with the draft NRPs, as identified by the EPC.
The programmes are required, under the EU's economic governance arrangements, to enable multilateral surveillance of the member states' economic policies. They should normally contain a macroeconomic scenario for the medium term, national targets for translating headline targets set under the "Europe 2020" strategy for jobs and growth, identification of the main obstacles to creating growth and jobs, and measures for concentrating growth-enhancing initiatives in an early period.
Review of the draft programmes constitutes, along with the Annual Growth Survey, first steps in implementation of the so-called "European Semester", which involves simultaneous monitoring of the member states' budgetary policies and structural reforms, in accordance with common rules, during a six-month period every year.
At its meeting on 24 and 25 March, the European Council is due to provide guidance to the member states for finalisation of their stability and convergence programmes (budgetary policies) and national reform programmes (structural reforms).
The European Semester is implemented for the first time this year as part of a reform of EU economic governance.
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