Brussels, 11/07/2012 (Agence Europe) - On Tuesday 10 July 2012, the ECOFIN Council published country-specific recommendations for the 27 member states' economic policies set out in their national reform programmes (medium-term macroeconomic outlook, national objectives to implement the EUROPE 2020 Strategy, a list of the main hindrances to growth and measures to get growth stimulus measures up and running rapidly) along with opinions on budget policies set out in member states' stability programmes or convergence programmes (medium-term budget targets, assumptions on economic growth, description of budget and other economic policy measures and an analysis of the impact any change in these hypotheses would make on the country's budget situation and debt).
The Councl also publishd a special recommendation on economic policies for eurozone nations, most of which were approved by the European Summit on 29 June 2012. Publication of the recommendations by the ECOFIN Council marks the end of the European Semester for 2012.
Malta and Bulgaria voted against their recommendations because of problems with the proceedings. Both countries feel they had not been consulted enough by the Commission before the recommendations were drawn up. Malta is unhappy about the recommended reforms to its pension system because it says the recommendation jeopardises social dialogue at national level and would mean changing the reforms that have already been introduced and it is also unhappy about the pay rise indexing system.
Belgium issued a statement without actually opposing the recommendations. On the retirement age, Beligum said it was determined to ensure the viability of its pension system while taking account of changes in life expectancy, first and foremost by taking measures to increase the effective retirement age. On the pay rise indexing system, Belgium said it would ensure that pay rises reflect developments in prodcutivity and competitiveness, but says that the Commission's current recommendation is over-prescriptive.
The Italian prime minister, Mario Monti, said at a press conference on Tuesday that the European Summit had spent a lot of time adopting the country-specific recommendations and these had been discussed at the ECOFIN Council. He said this was the first time that the European Semester had incorporated the new demands set out in the six-pack of economic governance measures on the basis of “complain or explain”, and this had led to more incisive measures for the different countries. Monti said the recommendations for Italy were severe, but he recognised the utility of them. Mario Monti was pleased that the European Semester process had been strengthened and had generated public and political debate in a range of countries.
The “complain or explain” idea was introduced last year for the surveillance of economic and budget policies and the Council of Ministers has published explanations for areas of the Commission's recommendations which countries are not happy about. During the European Semester, the Commission simultaneously monitors member states' economic and fiscal policies in accordance with common rules over a six-month period every year. In April each year, member states present national reform programmes and stability or convergence programmes. (LC/FG/transl.fl)