1. EUROPE
The European Semester 2012

2. The European Semester timeline
Council of
Ministers
European
Commission
Parliament
Council
summit
January
March
April
February
May
June
July (
Peer review
at national
level
Debate &
orientations
Adoption of country-specific recommendations
Member
States
Conclusions
Adoption of Stability and Convergence Programmes, and National Reform Programmes
Dialogue
Orientations:
AGS & Alert Mechanism Report
Proposals for country-specific recommendations including preventive arms of SGP and EIP
Debate
Endorsement of country-specific recommendations
Dialogue European Council
conclusions
Spring
Dialogue results of surveillance
Implementation in national budgets
Reviews 2

3. Annual Growth Survey: five priorities for 2012
The Spring European Council endorsed the AGS 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
Modernising 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 Report
Two-pack (ongoing discussions)
- Monitoring and assessing draft budgetary plans
- Enhanced surveillance for euro area Member States facing severe difficulties with regard to their financial stability
Treaty 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 finance
Implementation of the Single Market Act, particularly the Service Directive
Complete the Digital Single Market by 2015
Internal market in energy by 2014
Forthcoming "employment package”
Forthcoming Communication on growth and jobs for Greece
Project 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 should
have 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
> 40
Source: 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 Programmes
Guarantee job, education or training for each young person within 4 months of leaving school
Agree with social partners to increase number of apprenticeships and traineeships
Re-direct EU Structural Funds to give priority to youth unemployment
Use 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 2012 9

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 plans
Use of unallocated EU Structural Funds to fund training and work experience
Presentation of J.M. Barroso to the informal European Council, 30 January 2012 10

11. … and boosting the competitiveness of our SMEs
Access to finance
Access to markets
EU schemes for SMEs:
Direct funding and loans
Guarantees
Working capital
EIB
EU market for venture capital
Innovative financing instruments (project bonds)
At home:
Enforce Single Market legislation
Fast-track Single Market Act
Use of public procurement
Abroad:
Support for internationalisation
New trade agreements
Cutting red-tape
E-government and e-commerce
3 days to start a business
Reduction of late payments
Exemptions for micro-firms
Presentation of J.M. Barroso to the informal European Council, 30 January 2012 11

12. Venture capital is in short supply in Europe
Venture capital investments by investment stage (% GDP)
Early stage investments
Expansion and replacement investments
EU 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 2012
It 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 Programme
Commission / 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 programmes
May: Commission issues proposal for country-specific recommendations
28-29 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!