Luxembourg, 21/06/2013 (Agence Europe) - On Friday 21 June, EU finance ministers endorsed the European Commission's budget and economy recommendations, submitted at the end of May (see EUROPE 10855). It will now be for the European Summit to put the finishing touches to the European Semester by inviting the member states to apply the Commission's recommendations, particularly for the drawing up of national budgets for 2014.
Euro Commissioner Olli Rehn said the recommendations were not to be followed just because the European Commission or the Ecofin Council say they should, but because they are the ideal way for member states to reform their economies and stimulate growth in a context of recession. Responding to a number of delegations that felt the Commission was being too prescriptive, he said it was for the member states to decide how to achieve the targets that have been set. French minister Pierre Moscovici said that the objectives are shared, but the details are left to the member states, noting the importance here of the social partners. France has been asked to make its retirement system financially viable, and rather than taking the Commission's line of extending the legal retirement age, it prefers talk of the “effective” retirement age.
The ministers did not adjust the draft recommendations, although some changes had already been made in the margins by the Council of Ministers' national experts. Under the new stability and growth pact, a qualified majority of countries is required in order to reject a Commission recommendation.
The Council of Ministers has given six countries more time to bring their deficit below 3% of GDP, the extra time being granted to enable them to make the recommended reforms. Two extra years have been granted to Spain (new deadline 2016), France (2015), Poland (2014) and Slovenia (2015) and one more year has been given to the Netherlands (2014) and Portugal (2015). Five countries (Italy, Latvia, Lithuania, Hungary and Romania) have had the excessive deficit proceedings against them lifted, but Malta, whose deficit is expected to reach 3.7% of GDP in 2013, again has had excessive deficit proceedings launched against it, requiring its deficit to be reduced to 2.7% of GDP in 2014. The Council put pressure on Belgium to reduce its deficit to 2.7% of GDP in 2013. Asked to make a structural effort of 1%, Brussels says it is prepared to take additional measures if needed. (MB/EL/transl.fl)