Brussels, 28/02/2008 (Agence Europe) - On Tuesday 4 March, EU economics and finance ministers will complete their preparations for the March European Council on financial and economic issues by examining the integrated guidelines for the Broad Economic Policy Guidelines (BEPG) and the country-specific recommendations. The BEPG and the employment guidelines together make up the 'integrated guidelines'. Launching the second three-year period of the revised Lisbon strategy (2008-2010), the European Council will confirm that the current guidelines remain valid and will therefore be renewed for the next three-year period. On 13-14 March, EU heads of state will also endorse the European Commission's country-specific recommendations, set out in the strategic report published in December (see EUROPE 9562). Given that more time is needed to introduce structural reforms, the ECOFIN Council on Tuesday will recommend keeping the recommendations virtually unchanged, simply adjusting them to fit progress achieved since they were adopted in the spring of 2007.
Prepared by the Economic and Financial Committee and the Economic Policy Committee, the report on the BEPG reviews the 6 macroeconomic and the 10 microeconomic policy guidelines, looking at the economic situation and reforms in Europe. The recent growth spurt is generally due to cyclical conditions, but there are also signs of successful reforms implemented in the member states (particularly regarding the labour market). The economic conditions have been favourable since 2005 but have been characterised in recent months by greater risks, and the prospects for 2008-2009 suggest a slowdown in growth. Progress during the first round of the revised Lisbon strategy (2005-2008) has helped boost the growth potential of member states' economies and make them more resistant to external shocks. The integrated guidelines drawn up in the past have achieved their end and no major changes are required. Instead, the focus should be on implementing them. 'The goal of making the EU a dynamic, competitive knowledge based society remains essential,' explains the document, adding that the political challenge is to avoid complacency and continue to tackle the structural weaknesses that are still holding back the supply of labour, job creation, innovation and adjustment to technological progress, therefore restricting the EU's capacity to respond to international shocks. (A.B.)