2 The European Semester timeline Council ofMinistersEuropeanCommissionParliamentCouncilsummitJanuaryMarchAprilFebruaryMayJuneJuly(Peer reviewat nationallevelDebate &orientationsAdoption of country-specific recommendationsMemberStatesConclusionsAdoption of Stability and Convergence Programmes, and National Reform ProgrammesDialogueOrientations:AGS & Alert Mechanism ReportProposals for country-specific recommendations including preventive arms of SGP and EIPDebateEndorsement of country-specific recommendationsDialogue European CouncilconclusionsSpringDialogue results of surveillanceImplementation in national budgetsReviews2
3 Annual Growth Survey: five priorities for 2012 The Spring European Council endorsed the AGS priorities:Pursuing growth-friendly fiscal consolidationRestoring normal lending to the economyPromoting growth and competitivenessTackling unemployment and the social consequences of the crisisModernising public administration
4 A reinforced economic governance Six-pack (entered into force on 13 December 2011)- Timely, graduated and effective mechanisms for compliance, including financial sanctions (for euro area Member States)- Preventing and correcting macro-economic imbalances: first issue of the Alert Mechanism ReportTwo-pack (ongoing discussions)- Monitoring and assessing draft budgetary plans- Enhanced surveillance for euro area Member States facing severe difficulties with regard to their financial stabilityTreaty on Stability, Coordination and Governance (signed on 2 March 2012 by 25 Member States, intergovernmental agreement) Enters into force following ratification by at least 12 euro area Member States
5 A plan for growth in Europe Commission proposals for youth unemployment (Youth Action Teams in 8 Member States) and SMEs access to financeImplementation of the Single Market Act, particularly the Service DirectiveComplete the Digital Single Market by 2015Internal market in energy by 2014Forthcoming "employment package”Forthcoming Communication on growth and jobs for GreeceProject Bonds by June 2012
6 Meeting our targets for 2020 EMPLOYMENT 75% of the population aged should be employed(68.6% in 2010)INNOVATION 3% of the EU's GDP should be invested in R&D(2.0% in 2010)CLIMATE / ENERGY A reduction of CO2 emissions by 20%Share of renewable energies up to 20% (11.6% in 2009)An increase in energy efficiency by 20%EDUCATION The share of early school leavers should be under 10%(14.1% in 2010)At least 40% of the younger generation shouldhave a degree or diploma(33.6% in 2010)POVERTY 20 million fewer people should be at risk of poverty(close to 2 million more people in 2010 compared to 2009)6
7 European Council conclusions, March 2012: “Europe 2020 is Europe's strategy for jobs and growth and its comprehensive response to the challenges it is facing.In particular, the five targets set out for 2020 remain fully relevant and will continue to guide the action of Member States and the Union to promote employment; improve the conditions for innovation, research and development; meet our climate change and energy objectives; improve education levels and promote social inclusion in particular through the reduction of poverty.”« However, efforts undertaken to date remain insufficient to meet most of these targets. It is therefore urgent to concentrate on the implementation of reforms, with a particular attention to measures which have a short-term effect on jobs and growth. »
8 Youth unemployment is very high in some countries Youth unemployment rates (November 2011)% of labour force< 10> 40Source: European Commission
9 A “Youth on the move” Pact (1) EACH MEMBER STATE TO:Develop youth jobs plans by mid-April as part of National Reform ProgrammesGuarantee job, education or training for each young person within 4 months of leaving schoolAgree with social partners to increase number of apprenticeships and traineeshipsRe-direct EU Structural Funds to give priority to youth unemploymentUse existing EU support schemes to facilitate youth mobility (with EU and/or top-up national funding)Presentation of J.M. Barroso to the informal European Council, 30 January 20129
10 A “Youth on the move” Pact (2) WHERE YOUTH UNEMPLOYMENT IS SIGNIFICANTLY ABOVE EU AVERAGE:Action teams with Commission, Member States & social partners to develop youth jobs plansUse of unallocated EU Structural Funds to fund training and work experiencePresentation of J.M. Barroso to the informal European Council, 30 January 201210
11 … and boosting the competitiveness of our SMEs Access to financeAccess to marketsEU schemes for SMEs:Direct funding and loansGuaranteesWorking capitalEIBEU market for venture capitalInnovative financing instruments (project bonds)At home:Enforce Single Market legislationFast-track Single Market ActUse of public procurementAbroad:Support for internationalisationNew trade agreementsCutting red-tapeE-government and e-commerce3 days to start a businessReduction of late paymentsExemptions for micro-firmsPresentation of J.M. Barroso to the informal European Council, 30 January 201211
12 Venture capital is in short supply in Europe Venture capital investments by investment stage (% GDP)Early stage investmentsExpansion and replacement investmentsEU firms have traditionally much less access to venture capital than their US counterparts. The crisis has further limited access.Source: European Private Equity and Venture Capital Association (EVCA), European Commission
13 Time to start a business (calendar days) Reducing red tape (1)Time to start a business (calendar days)The Small Business Act for Europe has set the target of 3 days to start a business by 2012It currently takes 6.5 days to start a business in Europe, at a cost of € 400. The agreed EU target is 3 days by 2012, for less than € 100.Source: European Commission
14 European Semester: working together on next steps March: EU-level guidance from Spring summit (based on Annual Growth Survey)Now:MS to prepare youth jobs plan in each National Reform ProgrammeCommission / Member State action on youth unemployment in worst affected Member States (accelerating / redirecting structural funds for youth and SME support)13 April: Member State submit National Reform Programmes and Stability/Convergence programmesMay: Commission issues proposal for country-specific recommendations28-29 June: European Council decisions on country-specific recommendations
15 What is your role in the European Semester? President Barroso:« chaque fois qu'on a un Conseil Européen, nous avons tous les gouvernements qui discutent d'Europe 2020, et après, pour vous parler très franchement, je ne vois pas au niveau national le même type de débat. Il n'y pas une véritable appropriation du débat, à tous les niveaux, par toutes les composantes de la société civile. »“I believe it is critical on these efforts, namely about Europe 2020 Strategy, the ownership at the national level of these reforms not only by the national parliaments but also by social partners and the regions.”Conclusions, European Council, March 2012:In this process, in which social partners and regions have an important role to play, full use will be made of the tools offered by the European Union's new economic governance.
16 What is your role in the European Semester? Thank you for the integrated report including the contributions of national ESCs.Welcome an input on the proposals for Country Specific Recommendations to be issued by the Commission on 30 May, in view of the June European Council.Welcome your views on the state of play of implementation of the CSRs in your Member State, need for new CSR, reformulation..The Commission will propose to reinforce the involvement of social partners in coordination of economic and employment policies at EU level.Communicate on Europe 2020 in your Member State!