ECOFIN Council conclusions on EU 2020
17 March 2010
The Council is recommending that progress on the EU 2020 should be monitored rigorously by the European Council at least annually. The European Council may also want to consider setting intermediate milestones for achieving the targets set for 2020.
Objectives and Priorities
1. The Council TAKES NOTE of the Commission Communication on "Europe 2020 – a European Strategy for smart, sustainable and inclusive growth". It outlines an adequate framework for the European Union and member states for exiting the crisis and addressing the structural weaknesses of the European economy and the macro-economic challenges that have increased with the crisis. Overall the approach responds well to the views expressed by the Ecofin Council on 2 December 2009 in the context of "the Lisbon Strategy post-2010".
2. The Council EMPHASISES the need to firmly set the EU on an upward path of sustainable growth and employment creation and AGREES with the three proposed priorities of the Europe 2020 Strategy: Smart growth; Sustainable growth; and Inclusive growth. The Council CONSIDERS that the "Flagship Initiatives" set out by the Commission provide a good basis for reflections on how to focus efforts on the appropriate areas.
The Council RECOMMENDS that progress towards meeting the EU and national targets should be monitored rigorously by the European Council at least annually on the basis of contributions from the European Commission and the relevant Council formations. The European Council may want to consider setting intermediate milestones towards achieving the targets set for 2020.
Governance
11. The Council ACKNOWLEDGES the new enhanced governance framework proposed for Europe 2020. The Council SUPPORTS the approach of pursuing the new reform agenda through EU and national level initiatives and the delivery of the headline targets, under a thematic approach, on the one hand, and through effective country surveillance, focussing on the implementation of exit strategies; macro-economic issues related to growth and competitiveness, including macro-economic imbalances and macro-financial stability; and ensuring sustainable public finances, on the other hand. In particular, the Council SUPPORTS the active involvement and ownership by the European Council, both in discussing these issues on a regular basis and providing political guidance in individual policy areas and in assessing progress towards the Europe 2020 targets.
12. The Council CONSIDERS that the timing of processes should be assessed with the object of enhancing the overall consistency of policy advice to member states. The Council STRESSES the close policy inter-linkages between structural reforms and public finances: structural reforms contribute to sustainable public finances both directly (e.g. pension reforms) and indirectly by supporting growth and jobs.
13. The Council NOTES that country-specific recommendations under the Broad Economic Policy Guidelines (BEPGs, Treaty Article 121.2), will focus on policy advice to tackle macro-economic imbalances; to strengthen competitiveness; and structural reforms that are key growth drivers.
The Council WILL explore ways and means to ensure that such country-specific recommendations under the BEPGs are in conformity with national and EU fiscal frameworks and public finance constraints. To ensure overall coherence between the macro/fiscal framework and the thematic agendas, the Council NOTES the proposal to address, under the BEPGs, recommendations on the proposed thematic issues that have significant macro-economic implications.
The Council AGREES that enhanced country surveillance will be fundamental in achieving the overriding goals of the Europe 2020 strategy. This would include both the issuing of more precise and candid policy recommendations to member states and a closer follow-up of recommendations than in the past.
Close coordination of exit strategies will also be required to ensure coherence and avoid negative spill-over effects throughout the EU.
15. In view of the existence within the monetary union of larger spill-over effects, the Council CONSIDERS that closer coordination of exit strategies, stronger follow-up mechanisms with regard to country surveillance and more outspoken policy advice are particularly important within the Euro area to ensure the well functioning of EMU. The Lisbon Treaty (Article 136) has opened up new possibilities in this regard. The Council LOOKS FORWARD to the Commission's proposals for a more formalised framework in time for the June Ecofin Council.
16. The Council EMPHASISES the importance of developing transparent evidence-based evaluation frameworks to ensure the effectiveness of surveillance both in the country and the thematic pillars and coherent recommendations and CALLS on the Economic Policy Committee to contribute to the development of such frameworks to be ready in time for the June European Council.
17. The Council further STRESSES that consideration should be given to strengthening the EU dimension and harnessing EU instruments to make the most of the potential at EU level and that monitoring of progress of EU level actions has to be enhanced further, to ensure a genuine, concrete and coordinated policy agenda and that the interaction between EU policies and national policies mutually reinforce each other.
Communication
18. The Council also RECALLS the importance of public awareness and support for the successful implementation of policies and reforms. To this end, the Council CONSIDERS that policy advice should be made public. Moreover, progress towards meeting both the headline targets of the Europe 2020 Strategy and other key macro-economic variables should be published, based on appropriate indicators closely linked to the achievement of the final targets.
