Brussels, 20/02/2002 (Agence Europe) - On Thursday, the Commission is expected to unveil a Communication assessing the implementation in 2001 of the Broad Economic Policy Guidelines (BEPG), highlighting that Member States have made encouraging progress but there have been delays in several areas. The Communication will be accompanied by a working document summarising the progress made by each Member State in implementing BEPG 2001 as the first step in the annual BEPG process and is part of the preparations for the Barcelona Council (which will set 2002's BEPG). The Commission will be producing another document ahead of Barcelona looking at key strategy decisions to be adopted as part of the 2002 BEPG.
According to the Communication, pay rises remained moderate in 2001 despite the sharp increase (up to 3%) in pay per person in the eurozone. Pay increases were significant in six countries (Spain, Finland, Ireland, Luxembourg, the Netherlands and Portugal).
The Commission suggests that various Member States tighten up their budget procedures to gain tighter control of health care expenditure, noting that progress has only been lukewarm in terms of an ageing population. It expresses doubts about various countries' ability to meet the Stability Pact requirements (Germany, France, Italy and Portugal) of guaranteeing the viability of public finances, asserting that these countries also had to make an effort in terms of reforming their pension systems.
In terms of the employment market, the Commission notes that few countries have overcome obstacles to geographical mobility and that the job market had suffered from the economic slowdown (in 2001, only 1.1% employment growth and only slight fall in unemployment (o 7.8%). It notes that only Finland, Sweden and the UK had made an effort to take a pro-active approach to improving the job market. In terms of asset and capital markets, it notes a slowdown in price convergence between Member States. The Communication estimates that on average (October 2001 figures), the percentage of directives that have not been transposed into national law is 1% down on last year. The 1.5% target set fort the Barcelona Council has been exceeded by one point by Greece, France, Austria, the UK and Germany. France and Italy between them are responsible for 30% of the infringements of internal market regulations. The Commission points out that obstacles remain in terms of cross-border trade (it will soon be presenting a Communication on obstacles to services, Ed).
Of the 42 measures proposed in the Financial Services Action Plan, the Commission notes that 25 have been finalised. The Commission explains that to meet the 2005 deadline, various measures will have to be adopted quite rapidly (on pension funds, prospectuses, financial conglomerates and international accountancy standards).
In terms of the budget situation in 2001, the Communication does not have any new information on the analysis of the Stability and Convergence Programmes, noting that there has been a sharp deterioration in budget positions because of the use of automatic stabilisers and the effect of tax cuts by some countries; the EU's public deficit has risen from 0.1% of GDP in 2000 it 0.5% in 2001 (1.1% in the eurozone); balances fell from 2000 to 2001 in Germany, Ireland, Luxembourg and Finland and rose in Greece, Spain and Austria; and there are large structural deficits in Germany, France, Portugal and Italy.