Brussels, 21/01/2008 (Agence Europe) - On Tuesday 22 January, EU finance ministers will hold an initial debate on the orientation of their contribution to the European Spring Council on economics and finance. This “key issues paper” will be finalised during the Ecofin Council on 12 February, before being sent to heads of state and government. The draft document was elaborated by the Slovenian presidency, Economic and Finance Committee (EFC) and the Economic Policy Committee (EPC) and identifies five key issues:
1) According to the analysis of the economic situation in the EU27, growth remains robust but risks are increasing. The document indicates that “in the current context, there is a need to sustain reform efforts through the full implementation of the Integrated Guidelines for Growth and Jobs”. The document highlights the need for macro-economic stability in a context of an ageing population and globalisation.
2) In the area of structural reforms, emphasis should be placed on the Commission's strategic report on the revised Lisbon strategy (2005-07) published in December (EUROPE 9562). The Council believes that progress so far, including completion of the internal market, is encouraging. The four priorities previously defined by the European Council (knowledge and innovation, enterprise environment, human capital and modernisation of the labour market, energy and climate change) provide a framework for suitable reform and integration guidelines that should not be changed. It is therefore necessary to pursue reform - particularly on the employment and productivity front, and action at a European level must strengthen action by member states in three domains: investment in knowledge and innovation (mobility of students, researchers and teachers); the internal market as a means of improving citizens' quality of life and European competitiveness (thanks to targeted action, particularly on the network industries, services and innovation); transformation towards a sustainable low-carbon European economy. It is therefore “important to develop market-based instruments” (such as the European emissions exchange system, taxation and the promotion of new technologies) in order to reach climate and energy objectives, failing which, the economy, competitiveness and European public finances would suffer.
3) The public finances of member states should contribute to macro-economic stability. The Ecofin Council therefore reaffirms its support for the objectives of the Stability and Growth Pact (SGP), particularly those relating to the medium term objectives (MTOs). 2010 was the date suggested by Eurogroup for eurozone member states, but it was not explicitly mentioned. Sustainability and the quality of public finance also have to be improved.
4) In light of recent market turbulence, greater efficiency and stability on the financial markets is necessary, stress the ministers. This will be done through improved risk management (transparency, liquidity issues, complex instruments, credit agencies etc), improvement in the cautionary and supervisory context of the financial institutions and markets (by clarifying the role of the level 3 committees and improving cooperation and efficiency of supervision of the big financial groups), greater integration of financial infrastructures in the EU and getting rid of barriers to expansion of capital risk markets.
5) The success of the European Monetary Union (EMU) needs fostering. Member states of the eurozone should continue to adjust their economies and reduce their divergences in competitiveness, underlines the Council. (A.B.)