The annual growth review, a European Commission document that kicks off the 'European Semester' budgetary process for 2017, places "too little emphasis on the need for product market reform", according to draft conclusions to be adopted by the European Council Friday 27 January.
According to the experts of the member states, "product market reforms should be prioritised because of their more direct boost to productivity and output regardless of economic conditions" in a given country. These reforms can also "facilitate the success of labour market reforms" and "improve the adjustment capacity in the face of shocks", they add.
The European finance ministers are likely to support the usual triptych of socio-economic policies recommended by the Commission: stimulating investment, pursuing structural reforms and pursuing responsible budgetary policies.
Going into greater depth on pensions reforms
In addition to its focus on product markets, the Ecofin Council may call upon the member states to take additional measures to consolidate the reforms of the national pension systems already underway. It is also expected to approve the adoption of measures accompanying these reforms, such as "boosting retirement incomes by extending working lives, and by supporting other complementary means of retirement incomes".
On the same day, the ministers are also expected to advise Eurozone countries with considerable budgetary surpluses, such as Germany, to stimulate investment, for instance, by means of increased guarantees to the European Fund for Strategic Investments (EFSI), the financial arm of the 'Juncker' investment plan (see EUROPE 11706). (Original version in French by Mathieu Bion)