06 January 2012

Danish Presidency published its work programme

In the ECOFIN Council, the Presidency will prioritise:

• The handling of the economic crisis, including effective implementation of enhanced economic governance as well as the implementation of the Economic and Financial Affairs decisions of the European Council meeting of 9 December 2011.
• Swift and effective implementation of the financial regulation reforms.
• A strengthening of tax cooperation, including energy taxation and effective taxation of savings in other countries through exchange of information.
• Representation of the Member States at G20 meetings.

Enhanced economic governance – consolidation and reform agenda

The EU has adopted a historic economic governance reform. The reform comprises i.a. a strengthened Stability and Growth Pact and a strengthening of national budgetary frameworks, as well as new cooperation on addressing macro-economic imbalances. During the Danish Presidency, the full round of the European Semester will take place for the first time after the implementation of the reform (“six pack”). It will be a high priority to ensure that the implementation of the reform contributes in practise to better compliance with common ground rules and thus with healthier public finances that are a decisive basis for stable economic development, growth and employment and for the development of a green economy. In connection with the implementation of the reform, the Danish Presidency attaches importance to the implementation of existing consolidation plans and recommendations, both to strengthen credibility regarding the economic governance reform and to minimise the risk of the current debt crisis escalating further. The Danish Presidency will, furthermore, attach importance to the work on the Competitiveness Pact (Euro Plus Pact), which the euro area countries and six non-euro area countries joined in order to place further focus on the most important reforms for increased employment, sustainable public finances, enhanced competitiveness and financial stability.

The Council will need to prepare the economic summit of the European Council on 1-2 March 2012. At the summit, the European Council will present general economic recommendations regarding macro-economic policy, fiscal policy and structural policy, i.a. based on the Commission’s Annual Growth Survey. The recommendations are to serve as input to the preparation of the countries’ stability and convergence programmes, as well as national reform programmes, including any commitments under the Competitiveness Pact. The assessment of the programmes and the work on the countries’ compliance with recommendations, the further consolidation work towards achieving the medium-term budgetary targets, as well as budget and reform plans to ensure long-term fiscal policy sustainability are high priorities for the Danish Presidency. Against the background of the programmes, the Council will adopt statements and country-specific guidelines at its meeting in June 2012 with a view to approval at the summit of the European Council on 28-29 June 2012. It is essential that the assessments of the countries’ national programmes result in integrated, coherent recommendations that identify the relevant reform areas for the individual countries and sustain the consolidation agenda. The Danish Presidency will contribute to promoting the agenda regarding structural reforms supporting growth, employment and fiscal policy sustainability in the EU, i.a. on the basis of the EU’s Europe 2020 strategy.

The Danish Presidency will give weight to follow-up on the implementation of the country-specific recommendation under the excessive deficit procedure. 2011 was the first year in which all countries having received recommendations and notices were to consolidate and implement structural budgetary improvements. During the Danish Presidency, the Commission and the Council will for the first time, on the basis of actual figures for public finances in 2011, be able to see whether the EU Member States’ consolidation is on track. Specifically, the Council will be able to take decision on a potential abolition of the deficit procedure or on new steps in the procedure for the individual countries.

Furthermore, the Council will for the first time need to consider the new procedure for excessive macro-economic imbalances. The Commission is expected to present its assessment of whether there are countries with excessive macro-economic imbalances. The assessment will be made on the basis of a calculation of a scoreboard of indicators showing potential imbalances as well as a potential subsequent detailed examination of this. Ultimately, the Council will need to assess potential imbalances and, if necessary, adopt recommendations specifying what the countries in question should do to correct the imbalances.

The Danish Presidency will work towards ensuring effective and thorough preparation in the Council of G20 meetings for finance ministers and central bank governors, which during the crisis have developed into a key international forum for economic and financial discussions. It is important that the EU stands united in the G20 and that the common EU representation pursues the Member States’ overall interests.

Strengthened financial regulation

The financial crisis has demonstrated a need for strengthened regulation and supervision of the financial sector. The Danish Presidency will therefore give high priority to this work. The Presidency will work for consensus in the Council on the Commission proposal for a revision of capital and liquidity requirements for credit institutions (CRDIV), translating the Basel III standards into EU legislation. The Danish Presidency will strive for consensus in the Council on revision of the regulation on credit rating agencies. The Danish Presidency will, moreover, promote other financial matters, including rules regarding markets in financial instruments, etc. (MiFID) and the rules governing market abuse (MAR). The Presidency will also prioritise negotiations with the European Parliament on regulation of derivatives trading (EMIR). Furthermore, the Danish Presidency will, in general, work towards improving the protection of European consumers in relation to the financial sector. The Presidency is also expected to work for progress regarding the Commission’s forthcoming proposal on crisis management in the financial sector.

Full programme

© European Council