BETA


2014/2059(INI) European semester for economic policy coordination: implementation of 2014 priorities

Progress: Procedure completed

RoleCommitteeRapporteurShadows
Lead ECON DE BACKER Philippe (icon: ALDE ALDE) ROSATI Dariusz (icon: PPE PPE), SZANYI Tibor (icon: S&D S&D), TERHO Sampo (icon: ECR ECR), MATIAS Marisa (icon: GUE/NGL GUE/NGL), EICKHOUT Bas (icon: Verts/ALE Verts/ALE)
Committee Opinion BUDG TORVALDS Nils (icon: ALDE ALDE)
Committee Opinion EMPL GUTIÉRREZ PRIETO Sergio (icon: S&D S&D) Rina Ronja KARI (icon: GUE/NGL GUE/NGL), Jean LAMBERT (icon: Verts/ALE Verts/ALE), Verónica LOPE FONTAGNÉ (icon: PPE PPE)
Committee Opinion ENVI GERBRANDY Gerben-Jan (icon: ALDE ALDE) Nicola CAPUTO (icon: S&D S&D), Julie GIRLING (icon: ECR ECR), Davor ŠKRLEC (icon: Verts/ALE Verts/ALE)
Committee Opinion IMCO COFFERATI Sergio Gaetano (icon: S&D S&D) Vicky FORD (icon: ECR ECR), Ildikó GÁLL-PELCZ (icon: PPE PPE), Antanas GUOGA (icon: PPE PPE)
Lead committee dossier:
Legal Basis:
RoP 54

Events

2015/02/17
   Commission response to text adopted in plenary
Documents
2014/10/22
   EP - Results of vote in Parliament
2014/10/22
   EP - Decision by Parliament, 1st reading/single reading
Details

The European Parliament adopted by 426 votes to 240, with 10 abstentions, a resolution on the European Semester for economic policy coordination: implementation of 2014 priorities

Recalling that the European Semester plays an essential role in coordinating economic and budgetary policies in the Member States, Parliament stressed the following issues:

Stimulate growth and investment : Parliament stressed that the challenges of the current economic situation, characterised by sluggish GDP – stable in the eurozone and rising by 0.2% in the EU-28 during the second quarter of 2014 – remarkably low inflation – down to 0.3% in August 2014, its lowest level since November 2009 – and unacceptably high unemployment – 11.5% in the eurozone and 10.2% in the EU-28 in July 2014 – have to be addressed urgently.

Even though the economic recovery in the EU had encouraging signs in the previous two years, this recovery is very fragile and uneven, and must be sustained in order to deliver more growth and jobs in the medium term. The Commission is called urgently to set in motion a European investment program of EUR 300 billion as proposed by Jean-Claude Juncker to contribute to the short term recovery of European growth.

National implementation of the country-specific recommendations (CSRs) : Members stressed that there is an inconsistency between European commitment and national implementation of the CSRs by Member States. They are concerned that, according to the Commission, only 10 % of the CSRs for 2013 have been fully implemented. They noted, furthermore, that 45% of CSRs have seen limited or no progress.

The resolution stressed the importance of ‘national ownership’ by the relevant governments of EU-level commitments. CSRs should be formulated so as to provide policy space to Member States for designing the measures and specific reforms required for addressing such recommendations.

The Commission is urged to ensure concrete recommendations to the Member States and for the EU as a whole, including those under economic adjustment programmes, so that they not only address fiscal consolidation but also structural reforms that lead to real, sustainable and socially balanced growth, employment , strengthened competitiveness and increasing convergence.

Economic and monetary union : Parliament called on the Commission to put forward proposals for the completion of the EMU without delay in accordance with all the guidelines in its blueprint on a deep and genuine EMU. It reiterated once more its demand for a legal act on ‘ convergence guidelines ’ to be adopted under the ordinary legislative procedure and suggested that, on this basis, the Member States could enter into a ’convergence partnership ’ with the EU institutions, with the possibility of conditional funding for reform activities. Members invited the future Commission to put forward a proposal on the single external representation of the euro area.

Financial sustainability and flexible application of the Stability Pact : while stressing that fiscal sustainability is a prerequisite for a long term growth, Parliament stressed that special emphasis should be placed on growth-enhancing reforms and policies especially by those Member States that have fiscal space to invest in order to promote growth and facilitate rebalancing in the Euro area. It recalled that the existing legal framework makes it possible, provided reforms have been initiated, to allow Member States a degree of flexibility, and urges that this flexibility should be exploited.

Recommendations : Parliament supported the objective of placing emphasis on policies that enhance competitiveness, support investment and job creation, fight unemployment and improve the functioning of the labour market in particular in sectors with high growth potential. It stressed that cohesion policy represents a prominent investment framework for channelling growth friendly expenditure.

The Europe 2020 Strategy should be fully take into account in the implementation of the European Semester.

Parliament stressed the following priorities:

modernise their economies, social security systems, pension systems and health care , in order to avoid placing an excessive burden on future generations; target structural reforms at improving labour markets’ capacity to integrate young people as well as other excluded groups into the workforce and should be able to present opportunities to older workers; establish a common and inclusive labour market and a common modern and inclusive immigration policy by avoiding protectionist tendencies; implement an ambitious European energy policy which, by increasing security of supply and innovation in the energy sector, can bring about greater economic stability and growth; simplify tax systems so as to restore a favourable environment for undertakings in all Member States without exception and to cut red-tape and reduce administrative burden; complete the structural reforms by longer-term investment in education, research, innovation , a modern infrastructure and sustainable energy to enhance digital and ecological transition; remedy the lack of access to finance , particularly for SMEs propose measures to complete the internal market for capital to improve the allocation of capital to businesses in order to revitalise the real economy; stress the importance of the expedition and completion of the banking union ; ensure that the green economy is considered as a major driver for the development of the economy.

Parliament called on the new Commission to make the employment recovery an absolute priority by drawing up an ambitious and holistic strategy for growth and quality job creation and to propose a European framework introducing minimum standards for the implementation of the Youth Guarantees.

Democratic accountability : the resolution stressed the need to strengthen democratic accountability to the European Parliament and the national parliaments as regards essential elements of the euro area’s operation, such as the European Stability Mechanism, Eurogroup decisions, and the monitoring and evaluation of financial assistance programmes.

Members urged the Commission and the Member States, to incorporate financial assistance and the ad hoc system of the Troika into an improved legal structure compliant with the EU economic governance framework and community law, thereby guaranteeing democratic accountability. They requested that the Commission reports on a quarterly basis in Parliament’s competent committee on the measures taken to ensure progress on the implementation of the CSRs and on the progress achieved thus far. They invited Member States to explain the reasons for non-compliance with the CRSs in Parliament’s competent committee.

Documents
2014/10/22
   EP - End of procedure in Parliament
2014/10/21
   EP - Debate in Parliament
2014/10/20
   EP - Committee referral announced in Parliament, 1st reading/single reading
2014/10/20
   EP - Referral to associated committees announced in Parliament
2014/10/15
   EP - Committee report tabled for plenary, single reading
Details

The Committee on Economic and Monetary Affairs adopted the own-initiative report by Philippe DE BACKER (ADLE, BE) on the European Semester for economic policy coordination: implementation of 2014 priorities.

The Committee on Budgets, exercising its prerogatives as an associated committee under Parliament’s Rule 54 of the Rules of Procedure, was also consulted to give an opinion on the report.

Recalling that the European Semester plays an essential role in coordinating economic and budgetary policies in the Member States, the report stressed the following issues:

Stimulate growth and investment : the committee stressed that the challenges of the current economic situation, characterised by sluggish GDP – stable in the eurozone and rising by 0.2% in the EU-28 during the second quarter of 2014 – remarkably low inflation – down to 0.3% in August 2014, its lowest level since November 2009 – and unacceptably high unemployment – 11.5% in the eurozone and 10.2% in the EU-28 in July 2014 – have to be addressed urgently.

Members underlined that an ambitious initiative for triggering investment across the EU is urgently needed to relaunch and sustain economic recovery. They, therefore, called on the next European Commission to enhance European investment by EUR 300 billion as announced in the political guidelines by Jean-Claude Juncker.

Country-specific recommendations (CSRs) : Members stressed the inconsistency between European commitment and national implementation of the CSRs by Member States. They highlighted that ownership of the CSR by national parliaments needs to be strengthened and they called on the Commission to submit proposals on ways in which the recommendations of the European Semester could be made more binding.

Stressing that the financial, sovereign debt and competitiveness crisis cannot be solved by means of a loose monetary policy alone, Member stressed, therefore, the importance of continuing the process of deep, balanced and socially sustainable structural reforms to deliver on growth and job.

Economic and monetary union (EMU) : the EMU is far from complete, Members reminded the Commission of its obligations and commitments to take into account macroeconomic imbalances inside the EU and notably the eurozone to enhance economic and budgetary coordination and strengthen competitiveness in the EU.

In this respect, they reiterated once more their demand for a legal act on ‘ convergence guidelines ’ to be adopted and called on the Member States to enter into a ‘ convergence partnership’ with the EU institutions, with the possibility of conditional funding for reform activities.

Flexible application of the Stability Pact : while stressing that fiscal sustainability is a prerequisite for a long term growth, Members stressed that special emphasis should be placed on growth-enhancing reforms and policies especially by those Member States that have fiscal space to invest in order to promote growth and facilitate rebalancing in the Euro area. They recalled that the existing legal framework makes it possible, provided reforms have been initiated, to allow Member States a degree of flexibility, and urges that this flexibility should be exploited.

Recommendations : the committee supported the objective of placing emphasis on policies that enhance competitiveness, support investment and job creation, fight unemployment and improve the functioning of the labour market in particular in sectors with high growth potential.

The report stressed the following priorities:

modernise their economies, social security systems, pension systems and health care , in order to avoid placing an excessive burden on future generations; target structural reforms at improving labour markets’ capacity to integrate young people as well as other excluded groups into the workforce and should be able to present opportunities to older workers; establish a common and inclusive labour market and a common modern and inclusive immigration policy by avoiding protectionist tendencies; implement an ambitious European energy policy ; simplify tax systems so as to restore a favourable environment for undertakings in all Member States without exception and to cut red-tape and reduce administrative burden; complete the structural reforms by longer-term investment in education, research, innovation , a modern infrastructure and sustainable energy to enhance digital and ecological transition; remedy the lack of access to finance , particularly for SMEs propose measures to complete the internal market for capital and to complete the banking union ; highlight the job potential of the green economy , which according to Commission estimates could create 5 million jobs by 2020.

Concerned about the EU unemployment and youth unemployment rates (25.005 million unemployed in the EU-28 in June 2014 and 5.06 million unemployed young people in the EU-28 in July 2014), the report called on the Commission to make the employment recovery an absolute priority by drawing up an ambitious and holistic strategy for growth and quality job creation.

Democratic accountability : Members stressed the need to strengthen democratic accountability to the European Parliament and the national parliaments as regards essential elements of the euro area’s operation, such as the European Stability Mechanism, Eurogroup decisions, and the monitoring and evaluation of financial assistance programmes.

They requested that the Commission reports on a quarterly basis in Parliament’s competent committee on the measures taken to ensure progress on the implementation of the CSRs and on the progress achieved thus far. They invited Member States to explain the reasons for non-compliance with the CRSs in Parliament’s competent committee.

Documents
2014/10/13
   EP - Vote in committee, 1st reading/single reading
2014/10/02
   EP - Committee opinion
Documents
2014/09/30
   EP - Committee opinion
Documents
2014/09/26
   EP - Committee opinion
Documents
2014/09/25
   EP - Committee opinion
Documents
2014/09/09
   EP - Amendments tabled in committee
Documents
2014/08/01
   EP - Committee draft report
Documents
2014/07/24
   EP - Committee Opinion
2014/07/23
   EP - Committee Opinion
2014/07/22
   EP - Responsible Committee
2014/07/22
   EP - Committee Opinion
2014/07/17
   EP - Committee Opinion

Documents

Activities

Votes

A8-0019/2014 - Philippe De Backer - § 8/2

2014/10/22 Outcome: +: 435, -: 252, 0: 4
DE RO ES IT HU CZ BE BG AT PT NL HR SI MT SK SE LT LU FI PL EE LV IE DK CY EL FR GB
Total
84
25
49
72
21
21
19
15
18
18
26
11
8
6
12
19
9
6
12
48
5
7
8
13
4
20
70
65
icon: PPE PPE
203

Belgium PPE

Against (1)

3
2

Luxembourg PPE

3

Estonia PPE

For (1)

1

Denmark PPE

For (1)

1

Cyprus PPE

1
icon: S&D S&D
179

Netherlands S&D

3

Croatia S&D

2

Slovenia S&D

For (1)

1

Malta S&D

3

Luxembourg S&D

For (1)

1

Estonia S&D

For (1)

1

Latvia S&D

1

Ireland S&D

For (1)

1

Cyprus S&D

1
icon: ALDE ALDE
58

Romania ALDE

2

Bulgaria ALDE

2

Austria ALDE

For (1)

1

Portugal ALDE

1

Croatia ALDE

2

Slovenia ALDE

For (1)

1

Lithuania ALDE

2

Luxembourg ALDE

For (1)

1

Estonia ALDE

2

Denmark ALDE

3

United Kingdom ALDE

1
icon: NI NI
46

Germany NI

Against (1)

1

Hungary NI

Abstain (1)

3

Belgium NI

Against (1)

1

Netherlands NI

4

Poland NI

2

Latvia NI

1

United Kingdom NI

Against (1)

1
icon: EFDD EFDD
44

Czechia EFDD

Against (1)

1

Sweden EFDD

2

Lithuania EFDD

Abstain (1)

1

Poland EFDD

1

France EFDD

Against (1)

1
icon: GUE/NGL GUE/NGL
47

Italy GUE/NGL

3

Czechia GUE/NGL

3

Netherlands GUE/NGL

3

Sweden GUE/NGL

Against (1)

1

Finland GUE/NGL

Against (1)

1

Ireland GUE/NGL

3

Denmark GUE/NGL

Against (1)

1

Cyprus GUE/NGL

2

United Kingdom GUE/NGL

Against (1)

1
icon: Verts/ALE Verts/ALE
48

Hungary Verts/ALE

2

Belgium Verts/ALE

2

Austria Verts/ALE

3

Netherlands Verts/ALE

2

Croatia Verts/ALE

Against (1)

1

Slovenia Verts/ALE

Against (1)

1
4

Lithuania Verts/ALE

Against (1)

1

Luxembourg Verts/ALE

Against (1)

1

Finland Verts/ALE

Against (1)

1

Estonia Verts/ALE

Against (1)

1

Latvia Verts/ALE

Against (1)

1

Denmark Verts/ALE

Against (1)

1

United Kingdom Verts/ALE

5
icon: ECR ECR
66

Czechia ECR

2

Bulgaria ECR

2

Netherlands ECR

2

Croatia ECR

Against (1)

1

Lithuania ECR

Against (1)

1

Finland ECR

2

Latvia ECR

Against (1)

1

Greece ECR

Against (1)

1

A8-0019/2014 - Philippe De Backer - Résolution

2014/10/22 Outcome: +: 426, -: 240, 0: 10
DE RO IT ES HU PT LT CZ BG SI FR HR SK BE LV SE LU FI AT PL MT EE IE NL DK CY EL GB
Total
80
26
71
48
20
18
9
21
13
8
69
11
12
18
7
19
6
12
18
46
5
4
8
26
12
5
19
65
icon: PPE PPE
194
2

Belgium PPE

Abstain (1)

3

Luxembourg PPE

3

Estonia PPE

For (1)

1

Cyprus PPE

1
icon: S&D S&D
179
3

Slovenia S&D

For (1)

1

Croatia S&D

2

Belgium S&D

3

Latvia S&D

1

Luxembourg S&D

For (1)

1

Malta S&D

Against (1)

3

Estonia S&D

For (1)

1

Ireland S&D

For (1)

1

Netherlands S&D

3

Cyprus S&D

Against (1)

2
icon: ALDE ALDE
55

Germany ALDE

2

Romania ALDE

2

Portugal ALDE

1

Lithuania ALDE

2

Bulgaria ALDE

For (1)

1

Slovenia ALDE

For (1)

1

Croatia ALDE

2

Luxembourg ALDE

For (1)

1

Austria ALDE

For (1)

1

Estonia ALDE

For (1)

1

Denmark ALDE

3

United Kingdom ALDE

1
icon: Verts/ALE Verts/ALE
48

Hungary Verts/ALE

2

Lithuania Verts/ALE

For (1)

1

Slovenia Verts/ALE

For (1)

1

Croatia Verts/ALE

Against (1)

1

Belgium Verts/ALE

2

Latvia Verts/ALE

Against (1)

1
4

Luxembourg Verts/ALE

Against (1)

1

Finland Verts/ALE

Against (1)

1

Austria Verts/ALE

3

Estonia Verts/ALE

Against (1)

1

Netherlands Verts/ALE

2

Denmark Verts/ALE

Against (1)

1

United Kingdom Verts/ALE

5
icon: EFDD EFDD
44

Lithuania EFDD

1

Czechia EFDD

Against (1)

1

France EFDD

Against (1)

1

Sweden EFDD

2

Poland EFDD

1
icon: NI NI
45

Germany NI

Against (1)

1
3

Latvia NI

1

Poland NI

2

Netherlands NI

4

United Kingdom NI

Against (1)

1
icon: GUE/NGL GUE/NGL
47

Italy GUE/NGL

3

Sweden GUE/NGL

Against (1)

1

Finland GUE/NGL

Against (1)

1

Ireland GUE/NGL

3

Netherlands GUE/NGL

3

Denmark GUE/NGL

Against (1)

1

Cyprus GUE/NGL

2

United Kingdom GUE/NGL

Against (1)

1
icon: ECR ECR
64

Lithuania ECR

1

Czechia ECR

2

Bulgaria ECR

2

Croatia ECR

Against (1)

1

Latvia ECR

For (1)

1

Finland ECR

2

Netherlands ECR

2

Greece ECR

Against (1)

1
AmendmentsDossier
733 2014/2059(INI)
2014/09/09 ECON 351 amendments...
source: 537.316
2014/09/10 ENVI 41 amendments...
source: 537.482
2014/09/15 EMPL 313 amendments...