Brussels, 18/12/2013 (Agence Europe) - The talks among the EU heads of state will be only one stage in the process of arranging contracts between member states at European level and their committing to reforming their economies, with possible additional financial assistance.
The draft conclusions document of the European summit on Thursday 19 December, which this newsletter has seen, says that the EU28 will state that a full agreement should be reached in June 2014. Meanwhile, the president of the European Council, in close cooperation with the president of the European Commission, will work on the main characteristics of the new arrangements.
What is reported to have been agreed so far is that the system will form part of the European Semester that covers all euro nations apart from those in receipt of financial aid and it will be open to non-euro member states as well. To avoid duplicating existing surveillance in countries against which proceedings for excessive deficits or imbalances are under way, the draft conclusions document says that the corrective measures or economic partnership programme could substitute for the contractual arrangement. The system would include solidarity mechanisms to help member states where needed.
Work will continue on the solidarity mechanism and a contribution from the president of the European Investment Bank would be welcome. The question of exactly what form the support mechanisms would take (loans, subsidies or guarantees) remains to be settled. The support mechanisms should not lead to financial obligations for the member states not signed up to the contractual arrangements and must not impact on the multi-annual financial framework, must respect countries' “budget sovereignty” and not be designed as tools to reduce income inequality. The granting of financial aid will be legally binding, regardless of the form of the aid.
The contractual arrangement will be a “binding partnership” between the member state in question, the European Commission and the Council of Ministers and will be based on the specific recommendations for that country. The measures contained in the contract will be decided by the member state in collaboration with the country's parliament and social partners (employers and trade unions). They will be drawn up in agreement with the Commission and must be approved by the Council of Ministers. The Commission will monitor application.
Germany is planning to make a qualitative forward leap in this connection at the European summit this week. The Netherlands has already expressed opposition to the plans. (EL/transl.fl)