20 February 2014

Competitiveness Council conclusions on Annual Growth Survey / State of the Single Market Integration / European Foundation

Annual Growth Survey

Ministers held a debate on the Annual Growth Survey 2014, as a part of all relevant Council deliberations in preparation for the spring European Council on 20 and 21 March.

On 13 November 2013, the Commission published its Annual Growth Survey for 2014, which is an analysis of the progress on the Europe 2020 targets for the creation of economic growth and jobs. In order to encourage growth and competitiveness, the communication recommends that EU and national level efforts should continue to focus on the following five priorities:

• Pursuing growth-friendly fiscal consolidation;
• Restoring normal lending to the economy;
• Promoting growth and competitiveness;
• Tackling unemployment and the social consequences of the crisis; and
• Modernising public administrations.

The debate focused on the measures that, under the remit of the Competitiveness Council, can improve the economic performance and create added value in both the short and long term.

The importance of the Annual Growth Survey was largely recognised together with a clear message concerning the need of pursuing in the internal market integration with the aim of creating growth and jobs. All Member States reiterated their interest for the deepening of the “Services Directive” and stressed the need for an ambitious implementation.

National reforms stay high on national policy agendas and thus the Commission work programme was welcome. Member States reported on current reforms, stating priority services sectors, such as business services, trade, construction and professional services and considered that transparency, mutual evaluation and exchange of best practices are the right tools for that purpose.

Several delegations also indicated that further work towards lifting barriers to services and products should be promoted in order to enhance the international competitiveness of the EU. Many emphasised the convenience to closely work in partnership with the Commission so as to be able to reap the full economic benefits out of the implementation of the national reform programmes.

The Annual Growth Survey launches the European Semester. The European Semester makes part of a new governance architecture that was approved by the Member States in 2010. It is a six-month period every year during which the Member States' budgetary and structural policies will be reviewed to detect any inconsistencies and emerging imbalances. The aim is to reinforce coordination while major budgetary decisions are still under preparation.

In a new monitoring cycle, the European Council each March will identify the main economic challenges facing the EU and give strategic advice on policies. Taking this guidance into account, the Member States will present their medium-term budgetary strategies in their stability and convergence programmes. At the same time, they will draw up national reform programs setting out the action to be undertaken to strengthen their policies in several areas.

Together with the Annual Growth Survey, the Commission presented the second Single Market integration report, aimed at monitoring the functioning of the single market within the European Semester process. The report presents an analysis of the state of single market integration in five sectors with the highest growth potential: services, financial services, energy, transport and digital markets. Some of these issues were the subject of Council conclusions adopted last December (16443/13).

Statute for a European Foundation

The Council took note from the Presidency of the state of play regarding a draft regulation aimed at establishing the Statute for a European Foundation. The proposal has been examined under the successive previous Presidencies without reaching the required unanimity in the Council.

In November last year, the EU's Permanent Representatives Committee (COREPER) agreed to have tax provisions deleted from the proposal. Although the Commission regretted this deletion, it paved the way for a renewed examination of the proposal.

The Presidency announced its intention to take the work forward without delay with a view to making rapid progress in the negotiations.

Full results

Commission press release

© European Council