Brussels, 08/03/2005 (Agence Europe) - Following the Competitiveness Council (EUROPE yesterday p 10) and the Employment and Social Affairs Council (EUROPE 4 March p 7), the Ecofin Council in turn provided a contribution to the Spring Summit of 22-23 March by adopting a document on the main orientations for economic policies in 2005 and conclusions on domestic measures for implementing the European growth initiative. Like the Commission in its communication on a mid-term review of the Lisbon Strategy (EUROPE 3 February p 5), the Council indicates the objectives that need attaining for growth and employment, by following healthy macroeconomic policies.
The Council points out that although the economic recovery has lost some steam since the end of 2004 and that there were different signals being emitted on a recovery for 2005; budgetary policy has to continue within the structure of the medium term strategy. He highlighted structural reforms (pensions and health care) and genuine coordination of economic policies for “improving potential and effective growth”. In an effort to stimulate job creation, urgency measures had to focus on adaptability to the labour market; improving employment aptitudes and mobility at geographical and vocational levels; fiscal reform (to make work pay). The main groups of the population targeted are women, elderly workers, long term unemployed and immigrants, as well as the average number of hours worked - these remain key objectives. Priority action for increased productivity involves achieving the knowledge based society and stimulating innovation (strengthening the link between universities and public and industrial research bodies); completion of the internal market (single services market); creating a business friendly environment for SMEs; carry out structural reforms. Out of these points, the Ecofin Council has a major role to play, underlined ministers, who want to intensify the feeling of appropriation of the Lisbon strategy at a national level and among the EU instructions. They think that BEPG should focus on jobs and growth and that the number of orientations should be reduced and reports rationalised. Ministers want to see other Council bodies getting involved in setting up the BEPG (notably the Competitiveness Council) and point out that form autumn 2005, Member States will have to present national Lisbon action plans every year over a period of three years. The documents underline that specific road maps can be debated by national parliaments and social partners but have to remain flexible and adaptable. From 2006, the Commission will present its recommendations in January and the performance follow up of Member States should be ensured within the context of the annual spring report from the Commission. It should be accompanied by a qualitative policy analysis. Stability or convergence plans from Member States should be presented separately but ministers are requesting that reports on structural reforms be assembled into an annual national document (including domestic employment action plans, reports on national strategies for pensions and national action plans on social inclusion.
Following a rather brief assessment in March 2004, ministers evaluated the second reports from Member States on domestic measures for reinforcing the European growth imitative. Their conclusions contain positive contributions, such as the financial support of the European Investment Bank (EIB) but they also say that the expected effect of the initiative on public investment differs according to transport infrastructure, telecommunications or investment into R&D or innovation. Transport infrastructure improvement is part of the economic strategies of Member States but some Member States have reoriented their public spending in support of key transport sectors while in others, “the initiative has not had a noticeable influence on investment projects in 2004-2005”. For infrastructure and telecommunications, investment remained essentially market led but some countries provide direct or indirect aid to projects in isolated or scarcely populated areas. Research and Development: there have been public private initiatives. Overall the Council says that many Member States have attempted to mobilise private resources to improve conditions in Public Private Partnerships (PPP). It is calling on Member States to support rapid start-up cross-border projects and innovative R&D projects.