Brussels, 13/02/2013 (Agence Europe) -EU finance ministers recognise the challenge facing member states in striking a balance in their budgets between reining in public spending and boosting growth and jobs. Irish Finance Minister Michael Noonan said the two go hand-in-hand because growth is only possible in a stable economic environment. The member states decided to go along with the European Commission's recommendations set out in its Annual Growth Survey unveiled in November 2012 (see EUROPE 10751) at the start of the “European Semester” that ends with country-specific recommendations from the European Summit in June 2013.
The 27 say that remarkable progress was made in 2012 but there is no room for complacency and countries must correct macroeconomic imbalances (whether surpluses or deficits) and boost competitiveness in order to guarantee credibility and reduce unemployment. To this end, the ministers called on countries to improve and make their labour markets more flexible and on the EU institutions to take decisive action for growth and jobs by implementing the Growth Pact adopted by heads of state in June 2012.
EU Economic and Monetary Affairs Commissioner Olli Rehn welcomed the fact that the EU ministers took the same approach as the European Commission. MEPs have not agreed on a common line on the Annual Growth Survey (see EUROPE 10781), being split between Left and Right, the Left wanting less of a focus on austerity and the Right the opposite. Rehn said that the Commission's growth priorities, which the ministers have gone along with, are investment in education and training, completing the process of restoring a healthy financial industry to ensure that small business and households can get finance and so that public investment can be backed. He said these issues would be reflected in the country-specific recommendations later in the year. (EL/transl.fl)