The European Commission makes annual country-specific reform
recommendations to each member state to guide national policy
regarding structural reform. The recommendations cover a wide range
of issues, including public finances and structural reforms in
areas such as taxation, pensions, public administration, services,
and the labour market, especially youth unemployment. They offer
bespoke policy advice based on a review of each member state's
economic and social performance in the previous year and EU-wide
priorities for employment and growth. The current country-specific
recommendations adopted by the European Commission in May 2013 hope
to move Europe beyond the crisis and strengthen the foundations for
growth.
The extra "breathing space" allowed for certain member
states to meet deficit-reduction obligations and boost growth was
welcomed by MEPs during the joint economic affairs and employment
committee debate with Commissioners Olli Rehn and
László Andor. At the debate MEPs also expressed their
reservations concerning the analysis and economic theories
underlying austerity recommendations.
MEPs welcomed the fact that this year's recommendations grant
France, Spain and Poland an extra two years, and Belgium,
Netherlands and Portugal an extra year, to meet deficit-cutting
requirements. Nevertheless, concern was expressed that the
recommendations are much more rigorous for small member states than
for larger ones and that member states receiving support, like
Greece or Portugal, are made to forgo democracy in the economic
decision-making process.
Some MEPs complained that the analysis and economic theories on
which the Commission had based its prescription of austerity were
fragmented or inadequate, and stressed the need for democratic
decision making in order to secure popular support for reforms.
Many MEPs expressed dissatisfaction that the European Parliament
was not involved in the decision-making process and not adequately
informed.
In March, Member States agreed on the five priorities proposed by
the Commission for 2013: pursuing differentiated 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
administration.
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