Stepping up coordination of economic policy

Finance ministers approved in ECOFIN on 20 June, country-specific guidelines issued as part of the first European Semester, concerning member states' structural reforms and budgetary policies aimed at generating growth and stability.

© Alexandr Mitiuc, Fotolia

The guidelines are based on the Commission's evaluation of member states' national reform programmes (NRPs) and on national stability and convergence programmes (SCPs). Some of the issues debated in ECOFIN were:
- the expected growth in domestic demand,
- pension reforms,
- retirement age,
- balance between progressive labour taxes and VAT and green taxes,
- property taxes and mortgage rate.

"With this we send a strong signal to financial markets that we have strengthened the EU and defended the eurozone. We stand united, there is no other way out of the crisis" said Mr György Matolcsy, Hungarian Minister of Economic Affairs.

The first Semester, which started on 1 January 2011, ends when the European Council gives its final endorsement as expected on 23-24 June, and the Council subsequently formally adopts the guidelines.

During the autumn, member states will finalise their budgets for 2012 before sending them on to their national parliaments, which decide on them.

The second European Semester will run from January-July 2012.

More information:
Press release (pdf)
Press conference webcast