State of the Union: economic progress

The State of the Union 2017 web page of the European Commission offers us materials and some updates concerning policy initiatives relating to the Commission Work Programme (CWP) 2018. In addition, a few novelties on the economic front are worth mentioning. Yesterday the Commission vice-president Valdis Dombrovskis spoke about a proposal for a stronger and more integrated financial supervision for the Capital Markets Union (CMU) SPEECH/17/3365, complemented by a press release IP/17/3308, questions and answers MEMO/17/3322 and a brief CMU and supervision factsheet.

Today, Thursday 21 September 2017, the Comprehensive Economic and Trade Agreement (CETA) between the EU and Canada entered into force provisionally IP/17/3121.

The European Commission also launched a “Border Focal Point”, a hub of EU experts IP/17/3270 and MEMO/17/3271, to help border regions - 40% of the EU territory and 150 million inhabitants - break down barriers to jobs and investments.

We can take note of the European Labour Authority president Juncker initiated in his SOTEU address, with a view to mobile workers and commuters.

Economic progress

The State of the Union 2017 brochure (108 pages), still only in English, continues with the section Progress in the economic situation (from page 74), in practice four pages of useful graphs for interested readers: faster economic growth, economic sentiment picking up, investment growth, job creation, decreasing unemployment, rising employment rate, shrinking public deficit, decreasing government debt, more robust banks, plus a table with numbers at country level in addition to aggregate figures.

A recent press release from Eurostat tells us that employment increased by 1.6% in the euro area and 1.5% in the EU28 compared with the second quarter last year.

Economic reform issues are on the agenda of the ECOFIN ministers, as told by Commission vice-president Valdis Dombrovskis SPEECH/17/3281, and the Eurogroup, as told by its president Jeroen Dijsselbloem after the latest meeting.  

Ralf Grahn

Denmark in EU theme collected

Here is a compilation of posts on my three Euroblogs regarding Denmark in the European Union.

Eurooppaoikeus (in Finnish)

Tanska Euroopan unionissa

Eurooppa-päivänä: Tanska ja kansalaisen EU-tieto

Grahnblawg (in Swedish)

Danmark för nordbor: 117 frågor och svar om EU  

Intern EU-samordning mellan Bryssel och Köpenhamn

Grahnlaw (in English)

European Semester 2017 start: Denmark

European Semester: Country Report Denmark 2017  

Grahnblawg (in Swedish)

Integrerade riktlinjer för Europa 2020-strategin

Danmarks nationella reformprogram och konvergensprogram 2017

Danmarks Nationella Reformprogram 2017

Norden: reform, konvergens och stabilitet 2017  

Grahnlaw (in English)

Competitiveness: Denmark’s happy achievers  

Two freedoms of competitive Denmark

Future-proof Denmark?

Digital transformation in Denmark

Denmark’s Digital Strategy 2016-2020

Country-specific recommendation

Just after the blog series on Denmark, the European Commission presented its 2017 spring package, based on the National Reform Programme and the Convergence Programme, together with the Commission’s spring forecast 2017, but roughly a summary of the country report we discussed earlier:

Recommendation for a COUNCIL RECOMMENDATION on the 2017 National Reform Programme of Denmark and delivering a Council opinion on the 2017 Convergence Programme of Denmark; Brussels, 22.5.2017 COM(2017) 504 final

In the end, the Commission wants the Council to issue  one country-specific recommendation to Denmark: Foster competition in the domestically oriented services sector.

Ralf Grahn

European Council endorsed Annual Growth Survey 2012 priorities

The European Semester was kicked off by the Annual Growth Survey 2012 (AGS) Brussels, 23.11.2011 COM(2011) 815 final VOL. 1/5 (and the four annexes, Volumes 2-5).


EUCO conclusions

The conclusions of the spring European Council (EUCO) were brief and general in the fourth cornerstone paragraph:

4. For 2012, the European Council endorses the five priorities set out in the Commission's Annual Growth Survey for action taken at the EU and national level to:

– pursue differentiated, growth-friendly, fiscal consolidation,
– restore normal lending to the economy,
– promote growth and competitiveness,
– tackle unemployment and the social consequences of the crisis, and
– modernise public administration.

Synthesis report

When the European Council conclusions endorse the priorities proposed by the Commission, there is - if not a whole mountain - at least a molehill of views and conclusions behind each paragraph to inspire more detailed future policy work.

The Danish presidency prepared a shortcut: Implementation of the European Semester - Synthesis report (22 February 2012, Council document 6662/12).

However, the Synthesis report did not offer links to the various documents. Some readers may need to revisit the original and more detailed contributions submitted to the spring European Council, in order to find out what the five priorities set out in the Commission's Annual Growth Survey (AGS) and its annexes actually mean and require in the form of action.



Ralf Grahn
speaker on EU affairs, especially digital policy and law

P.S. Between the global issues and the national level, with a tenuous hold on democracy, the European Union institutions and the eurozone coteries shape our future. At the same time we see a European online public sphere emerging. Grahnlaw (recently ranked fourth among political blogs in Finland), Grahnblawg (in Swedish) and Eurooppaoikeus (meaning European Law, in Finnish) are among the more than 900 euroblogs aggregated by multilingual Bloggingportal.eu. Are you following the debates which matter for your future? Is your blog already listed on Bloggingportal?

EU leaders: ”Oops, we forgot our strategy”

In its conclusions, the European Council suddenly remembered that it already has a comprehensive strategy for growth, competitiveness and employment: Europe 2020 (EU2020). The heads of state or government need to breathe life into their common strategy, because they frankly admit that their efforts to date are insufficient.


Amnesia

I strongly recommend president Herman Van Rompuy's strategic and elegant Issues Paper, written ahead of the spring European Council, but for some inexplicable reason he evaded the Europe 2020 strategy (EU2020).

The twelve prime ministers who wrote A plan for growth in Europe, calling for more resolute reform policies, as resolutely forgot to mention that the EU already has the EU2020 strategy.


EU2020 resurrected

It took the reply from Commission president José Manuel Barroso to remind these leaders of the existing strategy for this decade:

We have agreed on an ambitious and comprehensive growth and jobs strategy: Europe 2020. Our common ownership of it needs to be more visible to our citizens. They need to know that the EU has a clear strategy for building a better future and that all Member States are working in the same direction. There should be no artificial separation between EU and national growth policies, they reinforce each other.

The conclusions of the European Council (EUCO 4/12) then turned into a strong reminder of the crucial role of the Europe 2020 strategy and of the need to step up efforts significantly:

2. "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.

3. 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.

Much better. But why did it happen? How credible does the commitment look, when all these reform-minded leaders were happy to forget even the existence of EU2020, their common strategy for a decade of smart, sustainable and inclusive growth?

Will they still remember, having returned home?

Our reading tip for them and their officials is: Progress Report on the Europe 2020 Strategy COM(2011) 815 Annex I.



Ralf Grahn
speaker on EU affairs, especially digital policy and law

P.S. Between the global issues and the national level, with a tenuous hold on democracy, the European Union institutions and the eurozone coteries shape our future. At the same time we see a European online public sphere emerging. Grahnlaw (recently ranked fourth among political blogs in Finland), Grahnblawg (in Swedish) and Eurooppaoikeus (meaning European Law, in Finnish) are among the more than 900 euroblogs aggregated by multilingual Bloggingportal.eu. Are you following the debates which matter for your future? Is your blog already listed on Bloggingportal?

EU2020 from failure to action

The heads of state or government reminded themselves of the comprehensive Europe 2020 growth strategy. In the European Council 1-2 March 2012 conclusions (EUCO 4/12, available in 23 languages) they assessed their own work to date:

3. 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.

Insufficient reforms

The EU member states are lagging. Brownie points for honesty, although nothing more than the European Commission said in its second Annual Growth Survey 2012 (AGS), which kicked off the European Semester:

Annual Growth Survey 2012 VOL. 1/5; Brussels, 23.11.2011 COM(2011) 815 final (18 pages) 

Progress report on the Europe 2020 strategy VOL. 2/5 - ANNEX I; Brussels, 23.11.2011 COM(2011) 815 final (27 pages) 

Macro-economic report VOL. 3/5 - ANNEX II; Brussels, 23.11.2011 COM(2011) 815 final (21 pages) 

Draft joint employment report VOL. 4/5 - ANNEX III; Brussels, 23.11.2011 COM(2011) 815 final (16 pages) 

Growth-friendly tax policies in member states and better tax coordination in the EU VOL. 5/5 - ANNEX IV; Brussels, 23.11.2011 COM(2011) 815 final (13 pages) 

For those who think that the Commission is evil and biased, even the more recent (22 February 2012) synthesis report on the implementation of the European Semester (Council document 6662/12), prepared by the Danish Council presidency, is relatively open about less than brilliant progress (page 3):

The Annual Growth Survey shows that progress has been made in a number of areas, but much remains to be done.

In particular, measures announced or adopted during 2011 must now be implemented rigorously in all Member States. The economic climate makes this difficult, but should be seen as an incentive to further focus efforts, both at the national and the European level.

Returning to growth

Both the Annual Growth Survey 2012 and the Council synthesis report contained advice on further action. Let us here quote key points the Danish report made (pages 3-4):

Commitments regarding the objectives on poverty, education, innovation and green growth, in particular, should not be set aside while not endangering rigorous fiscal consolidation.

- Fiscal consolidation efforts have been undertaken by almost all Member States but further efforts appear necessary and, in several countries, medium-term budgetary frameworks remain to be strengthened. Ad hoc measures regarding VAT systems taken by some Member States have yet to produce results. There has only been limited progress across Europe as regards the shift of taxation away from labour. The coherence of the measures taken and their impact on growth and fiscal consolidation also remain to be analysed.

- Efforts to increase competitiveness are still needed, in particular, to increase competition in the retail, service and infrastructures sector. While the transposition of the Services Directive in Member States is progressing, more support needs to give to enhancing crossborder labour mobility including by revision of the EU rules on mutual recognition of professional qualifications.

- Improving the environment in which businesses, including SMEs, operate is important, in particular the reduction of unjustified administrative and regulatory burdens.

- Promoting employment is a key policy objective in all Member States. Nevertheless, in many countries, more could be done in terms of active labour market policies and to combat labour market segmentation and excessively rigid employment protection legislation, reform unemployment benefit systems to make work pay and enhance employability of vulnerable groups. Youth unemployment remains of critical concern. Progress on the inclusion of young people in the labour market is still insufficient in several countries.

- Dual training and other reforms are under way in education systems, but investment in education and training is affected by fiscal constraints in a number of Member States. Ensuring quality of public spending in these areas is a particular priority.

- Pension system reforms have been undertaken in some Member States and are under way in a number of others, but their impact is often hampered by early retirement opportunities and special schemes that are still in place.

- The number of people at risk of poverty is on the rise, and has not been effectively addressed. More focus on increasing labour market participation of vulnerable groups could help address this concern. Some countries still have to take action to address the interrelated issues of household indebtedness and housing markets.

Naturally, the countries with the greatest problems are the ones to need the fastest and most dramatic reform, although their past record is the least promising. However, given the sorry state of the economy in almost all of the EU member states, the need for structural reform in the European Union as a whole is profound.

The national leaders have spoken wisely. Now they must act.



Ralf Grahn
speaker on EU affairs, especially digital policy and law

P.S. Between the global issues and the national level, with a tenuous hold on democracy, the European Union institutions and the eurozone coteries shape our future. At the same time we see a European online public sphere emerging. Grahnlaw (recently ranked fourth among political blogs in Finland), Grahnblawg (in Swedish) and Eurooppaoikeus (meaning European Law, in Finnish) are among the more than 900 euroblogs aggregated by multilingual Bloggingportal.eu. Are you following the debates which matter for your future? Is your blog already listed on Bloggingportal?

Breathing life into EU2020 necessary for growth, competitiveness and employment

After the European Council (EUCO) summary we noted a few key points in the intergovernmental Treaty on stability, coordination and governance in the economic and monetary union (TSCG, ”fiscal compact”) before discussing that the national leaders condemned themselves to achieve economic growth, enhanced competitiveness and new jobs within tighter budget limits, practically without money.

With growth stalling, Europe's competitiveness seriously eroded and unemployment rising, more than cheerful rhetoric is going to be needed to turn the tide.

What do the heads of state or government propose to do?

We turn to the three remaining cornerstones in European Council 1-2 March 2012 conclusions (EUCO 4/12, available in 23 languages) to take a look at this Houdini act.


Europe 2020

The political leaders remind themselves and others that the European Union has a comprehensive long term strategy for smart, sustainable and inclusive growth, Europe 2020 (EU2020):

2. "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.

Europe 2020 involves the member state in reform work at EU level with regard to the seven flagship initiatives. The institutions of the European Union and the governments of the member states have jointly agreed on common EU2020 targets. Many of the concrete structural, growth-enhancing reforms need to be carried out in and by the EU member states, by state, regional and local actors, social partners and enterprises. The structural reforms at EU and national level are intended to create synergy effects. The five headline targets have been translated into national targets, which take account of the different situations.

By mid-April (the end of April, at the latest) each EU member state sets out its actions in its national reform programme 2012 (NRP). The European Commission analyses every NRP, as well as the stability or convergence programme of every member state, and issues recommendations.

In the summer, the European Council and the Council (of ministers) are going to conclude the planning circle known as the European Semester by addressing recommendations to all the member states.


Divine inspiration?

There are worrying signs that Europe is sliding more than rising. The loss of international competitiveness and export shares in world markets are root causes of this decline, almost across the board.

Difficult but decisive reforms are needed, but rarely do we see signs of lively national debates centred on the Europe 2020 as a dynamic key to reform policies. Preparing mandatory programmes in the recesses of national ministries of economy, perhaps concerting with the main social partners, leads to paper programmes devoid of life.

The heads of state or government have given themselves a reminder of EU2020, but having returned home from the spring European Council, they have to breathe life into the Europe 2020 strategy process domestically.

They failed during the Lisbon strategy decade, and their EU2020 start has been disappointing, with the results we can see around us.

Especially in the member states lagging behind, divine inspiration looks necessary, but failing that the prime ministers and presidents have to make the Europe 2020 strategy a success in their own countries.

The Europe 2020 reforms concern almost all ministries and levels of government and the social partners, but also individual businesses and citizens. The media need to be woken up, if they don't notice themselves.



Ralf Grahn
speaker on EU affairs, especially digital policy and law

P.S. Between the global issues and the national level, with a tenuous hold on democracy, the European Union institutions and the eurozone coteries shape our future. At the same time we see a European online public sphere emerging. Grahnlaw (recently ranked fourth among political blogs in Finland), Grahnblawg (in Swedish) and Eurooppaoikeus (meaning European Law, in Finnish) are among the more than 900 euroblogs aggregated by multilingual Bloggingportal.eu. Are you following the debates which matter for your future? Is your blog already listed on Bloggingportal?

EUCO challenge: growth despite budget balancing

We already looked at the summary offered by the European Council. Since I enjoy the luxury of being able to blog about yesterday's news, I'll try to discuss what EUCO said about economic growth, competitiveness and jobs.

The conclusions of the European Council are available in all 23 official EU languages: in English: European Council 1/2 March 2012 (EUCO 4/12).

After the clear summary, the conclusions start with part I. Economic policy (paragraphs 1-24) and II. International summits (paragraphs 25-28).

Since our leaders do not want to ”burden” us with helpful links or references to the relevant documents, the process of reading becomes slow, even if we only want to hint at the existing official positions.


Stability and consolidation

The first paragraph lays the foundation. I understand financial stability as both a banking sector in working order and as tolerable borrowing costs for governments and enterprises. Fiscal consolidation means smaller budget deficits:

1. The European Union is taking all necessary measures to put Europe back on the path to growth and jobs. This requires a two-pronged approach, covering both measures to ensure financial stability and fiscal consolidation and action to foster growth, competitiveness and employment.

We enter a politically charged area. If deficits are cut, the hovercraft sinks to the ground. It lands on those who have received money from public coffers in some form, including the poor, which in turn slows the rest of the economy.

It may be socially understandable and politically tempting to protest, but do the protestors have real alternatives?

I would like to think there are, but I am afraid I do not see much possibilities this time around.

Between October 2008 and December 2010 the EU member states poured 10.5% of GDP as aid into the financial sector, but problems remain in the banking sector.

Many of the EU governments have no money to spare, and their borrowing is prohibitively expensive.


Alert Mechanism Report (AMR)

Naturally, some can dismiss the EU Commission is part of the same conspiracy as I am, but take the time to read the first Alert Mechanism Report 14.2.2012 COM(2012) 68, which offers a broader view of macroeconomic imbalances than mere budget deficits. (The AMR is available in 22 languages.)


Right or wrong?

Although the first report of its kind, I find the AMR ”family portrait” disturbing as well as essentially convincing, against the background of a clear loss of competitiveness and exports for the EU as a whole.

If we return to the pub discussion level, I would not expect a majority of the EUCO members to be ideologically driven enough to want to slash budgets and gain impopularity just for the fun of it.

At the same time, they have made their own game harder: regaining competitiveness and returning to economic growth, despite efforts to diminish public deficits.

Cold comfort for the jobless, but in my humble opinion, EUCO has made the right basic choice.

What can be done in these circumstances?



Ralf Grahn
speaker on EU affairs, especially digital policy and law

P.S. Between the global issues and the national level, with a tenuous hold on democracy, the European Union institutions and the eurozone coteries shape our future. At the same time we see a European online public sphere emerging. Grahnlaw (recently ranked fourth among political blogs in Finland), Grahnblawg (in Swedish) and Eurooppaoikeus (in Finnish) are among the more than 900 euroblogs aggregated by multilingual Bloggingportal.eu. Are you following the debates which matter for your future? Is your blog already listed on Bloggingportal?

EUCO: Fiscal compact TSCG

The fiscal compact, officially the Treaty on stability, coordination and governance in the economic and monetary union (TSCG), was signed yesterday by 25 of the 27 governments of the EU member states. Only the Czech Republic and the United Kingdom chose to exclude themselves at this stage.

The TSCG text is available in the 22 authentic treaty languages (Bulgarian, Danish, Dutch, English, Estonian, Finnish, French, German, Greek, Hungarian, Irish, Italian, Latvian, Lithuanian, Maltese, Polish, Portuguese, Romanian, Slovak, Slovenian, Spanish and Swedish).


A common concern

The recital reminds us of the obligation of all member states of the European Union to regard their economic policies as a matter of common concern. This obligation was introduced by the Maastricht Treaty, which was signed twenty years ago.

Recently, the failure of the states to adhere to and to enforce this obligation has turned it into a grave concern, common to all EU citizens (and beyond).

The TSCG still builds on the principle of national economic policies, which need to be coordinated intergovernmentally, although it purports to shrink the straitjacket.


Treaty law and enhanced cooperation

The aim of the signatories is to incorporate the substance of the TSCG into the legal framework
of the European Union within five years (Article 16). According to Article 10, enhanced cooperation is seen as an option.

This intergovernmental treaty, close to but outside the institutional framework of the European Union, went through six different drafts, which were not officially made public. However, the draft texts were leaked to selected media. Even if selective leaks violate the principle of equality between EU citizens, openness was served.


Ratification

According to Article 14(2) and (3), the TSCG needs to be ratified by at least twelve euro area member states to enter into force among them.

The meaning is twofold. The final number of ratifying states may be less than 25. For constitutional reasons Ireland is going to call yet another national referendum. Other countries may stumble when they try to transpose the changes into national law, although aid from the European Stability Mechanism (ESM) will become conditional upon the ratification of the TSCG.

On the other hand, a few dropouts won't spoil the party for the masochists.


Euro Summit

The provisions on governance (Euro Summit) apply to all parties from the original entry into force. See Article 14(4). The TSCG legalises the recent practice of euro summits, which have eclipsed the Eurogroup, which meets informally but is mentioned in an EU Treaty protocol.


Political alignment

For the non-euro countries, the TSCG is mainly a symbol of political alignment, since they undertake no concrete obligations, if they do not expressly undertake obligations. See Article 14(5). However, according to Article 12(3) they are granted limited participation rights in the Euro Summit.

The TSCG as a whole applies to the eurozone countries, although only a part of the provisions are real additions to the euro area acquis.

The signing of the TSCG took care of the ”austerity” part at the European Council 1-2 March 2012, so the main part of the EUCO meeting could – for a change – be devoted to economic growth, competitiveness and jobs.



Ralf Grahn
speaker on EU affairs, especially digital policy and law

P.S. Between the global issues and the national level, with a tenuous hold on democracy, the European Union institutions and the eurozone coteries shape our future. At the same time we see a European online public sphere emerging. Grahnlaw (recently ranked fourth among political blogs in Finland), Grahnblawg (in Swedish) and Eurooppaoikeus (in Finnish) are among the more than 900 euroblogs aggregated by multilingual Bloggingportal.eu. Are you following the debates which matter for your future? Is your blog already listed on Bloggingportal?

European Council and Single Market: ambitious enough?

Ahead of the spring European Council, the joint letter from the twelve prime ministers David Cameron (United Kingdom), Mark Rutte (Netherlands), Mario Monti (Italy), Andrus Ansip (Estonia), Valdis Dombrovskis (Latvia), Jyrki Katainen (Finland), Enda Kenny (Ireland), Petr Nečas (Czech Republic), Iveta Radičová (Slovakia), Mariano Rajoy (Spain), Fredrik Reinfeldt (Sweden) and Donald Tusk (Poland) to the president of the European Council (EUCO) Herman van Rompuy and the president of the European Commission José Manuel Barroso was titled A plan for growth in Europe.

This means that fifteen EU member states, among them France and Germany, did not participate in this call for growth policies.


Single Market reform

At the top of the wish list of the dozen premiers came an improved Single Market:

First, we must bring the single market to its next stage of development, by reinforcing governance and raising standards of implementation. The Commission’s report to the June European Council should set out clear and detailed actions needed to enhance implementation and strengthen enforcement.

Action should start in the services sector. Services now account for almost four fifths of our economy and yet there is much that needs to be done to open up services markets on the scale that is needed. We must act with urgency, nationally and at the European level, to remove the restrictions that hinder access and competition and to raise standards of implementation and enforcement to achieve mutual recognition across the single market. We look forward to the Commission report on the outcome of sectoral performance checks and call on the Commission to fulfil its obligation under the services directive to report comprehensively on efforts to open up services markets and to make recommendations for additional measures, if necessary in legislation, to fulfil the internal market in services.

Barroso reply

In the Annex to the Barroso reply we find the following list of ongoing or forthcoming actions:

1. Single Market

a) Commission Communication to the June European Council

This will present recommendations on how to make better use of the existing tools for improving and monitoring implementation of the Single Market, proposals on how to organise annual reporting on the Single Market, including on network industries and proposals on how to improve infringement/enforcement policy.

b) Commission report on the Services Directive and efforts to open up services markets, with recommendations for additional measures

The Commission is currently assessing the quality of the implementation of the Services Directive in all Member States, from an economic and legal point of view and on the operation of the Points of Single Contact and will report on this in the coming months.

c) Commission report on the outcome of sectoral performance checks

We are processing performance checks in 3 key sectors: Tourism, Construction and Business Services, to assess how different pieces of EU legislation applying to services work in practice when taken together.

***

Would you say that the demands or the planned actions are ambitious enough to turn the tide? If they are, in your view, will the needed qualified majorities be found? Is a sea change likely in the EU countries, especially the ones behind the curve?



Ralf Grahn
speaker on EU affairs, especially digital policy and law

P.S. For better or for worse, between the global issues and the national level, the European Union institutions and the eurozone coteries shape our future. At the same time we see a European online public sphere emerging. Grahnlaw (ranked fourth among politcal blogs in Finland), Grahnblawg (in Swedish) and Eurooppaoikeus (in Finnish) are among the more than 900 euroblogs aggregated by multilingual Bloggingportal.eu. Is your blog already listed among them? Are you following the debates which matter for your future?

European Council and the quest for growth

Some additions have been made to the materials ahead of the European Council 1-2 March 2012, since I described the sewing circle level of governance and pointed at the synthesis report about the implementation of the European Semester.

There is now a fairly meagre background note about the EUCO spring meeting. The invitation letter from president Herman Van Rompuy to the heads of state or government has also appeared, but his thoughts on reforms have not.


A plan for growth in Europe

If we go outside EUCO central, we find some interesting input. Twelve national leaders wrote to Van Rompuy and the Commission president José Manuel Barroso with A plan for growth in Europe (20 February 2012), listing eight priority areas for economic growth and job creation.

This year Barroso, who may have noticed the information vacuum preceding the spring summit, has been busy proselytising the Europe 2020 strategy (EU2020) for smart, sustainable and inclusive growth, as well as related Commission initiatives. He also replied to the EUCO members by a flowery letter (MEMO/12/146), but the birth of pre-summit discussion between the leaders is a small sign of improvement.

The Annex: Overview of state of play on initiatives referred to in the letter 'A Plan for Growth in Europe' offers a factual and useful check-list against the letter of ongoing reform projects aiming at economic growth. Let us lift the eight main headlines from the Barroso Annex:

1. Single Market
2. Digital Single Market
3. Energy
4. Innovation
5. External dimension of growth
6. Reduction of administrative burden
7. Employment
8. Financial sector legislation

Are the leaders prepared to achieve a seamless Single Market, a borderless Digital Single Market and all the rest, or is Europe turning into the new Atlantis?

Ralf Grahn
speaker on EU affairs, especially digital policy and law

P.S. For better or for worse, between the global issues and the national level, the European Union institutions and the eurozone coteries shape our future. At the same time we see a European online public sphere emerging. Grahnlaw, Grahnblawg (in Swedish) and Eurooppaoikeus (in Finnish) are among the more than 900 euroblogs aggregated by multilingual Bloggingportal.eu. Is your blog already listed among them? Are you following the debates which matter for your future?

EU2020 stands for 20 missing languages

What does the Commission's Europe 2020 web page Annual Growth Surveys have in common with Economic and Financial Affairs (Ecfin) page EU economic governance and president José Manuel Barroso's own res gestae on New action for growth, governance and stability?

They all offer access to the Annual Growth Survey 2012 and its four annexes in three of the 23 official languages of the European Union: English, French and German.

In my humble opinion it might be easier to inspire politicians and officials at local, regional and national level, people engaged with EU funds and civil society players, as well as the public in most member states, if the Commission cared enough to inform them in their own language.

It is not really that hard, since the Annual Growth Survey 2012 proper seems to exist in 22 of the EU languages, with Irish Gaelic the only exception. (Contrary to normal practice the English, French and German versions were not posted on Eur-Lex where the 19 other language versions were tucked away, but without links to the important annexes.)

Even the four annexes exist (ADD 1, 2, 3 and 4), if you search for Council document 17229/11 in all languages (or the language of your choice).

In other words, the Commission could easily remedy its omission with regard to 19 of the missing languages. After all, the Annual Growth Survey with its annexes is where the Commission wants to show its leadership.



Ralf Grahn

Update: For some reason, after posting, the link to the Annual Growth Survey 2012 on Eur-Lex turned up the Draft Joint Employment Report instead, but without links to the AGS or the other annexes. Mysterious.

Update 2, 6 January 2012: When the Commission seemingly added the English, French and German versions of the Annual Growth Survey 2012 (AGS) to the 19 existing language versions, it linked to one of the annexes instead, so the number of correct versions is still 19 on Eur-Lex. The annexes in national languages are still missing on the EU2020 pages.

EU: Ecofin G20 Cannes summit follow-up

It happened less than four weeks ago, but the daily developments during the global financial crisis and the crisis of the euro make it feel like an eternity: the G20 Cannes summit.

According to the agenda of the Economic and Financial Affairs Council 30 November 2011 and the background note, the Ecofin Council is going to follow up the G20 summit in Cannes on 3 and 4 November, on the basis of a debriefing by the Commission and by the French delegation (in its capacity as G20 presidency).

Here are the visible G20 summit outputs, which left few international and multilateral efforts unmentioned. The presenters are hopefully able to extract the gold nuggets for the EU finance ministers, on the last day of the French G20 presidency:

Communiqué G20 Leaders Summit -- Cannes -- 3-4 November 2011 (33 numbered paragraphs)

The Cannes action plan for growth and jobs and Annex with G20 members' individual commitments

Cannes summit final declaration (95 numbered paragraphs)

Appendices to these summit documents (nine appendices, twelve other reports)

Other outcomes of the Cannes summit of G20 (links to fact sheets on seventeen themes)



Ralf Grahn

Policy euroblogs: economy and eurozone

Ronny Patz made some interesting observations about policy-oriented euroblogs. He mentioned and linked to a number of interesting blogs in different policy areas.

Patz mentioned the growth of economic blogging during the ongoing crisis, even if he did not name individual blogs.

There are now 888 blogs listed on Bloggingportal.eu, the multilingual aggregator of euroblogs.

In order to pick up the thread where Ronny Patz had left off, I went back through the last few days of blog posts and marked the blogs which dealt mainly with the economy and the eurozone.

The choice is subjective, and some general euroblogs (not mentioned) manage to produce more quantity and quality in a few different fields than many specialised blogs in one.

Some of the economics blog are penned by mainstream media journalists, while others are written by individual economists and people interested in economic policies or politics more broadly.

Even if economics blogs tend to publish more during office days, I was surprised to find 32 blogs dealing mainly with the economy and the eurozone, and which had published these last days.


Here are the ones I stumbled across (with no claim to accurateness):

M.G. in progress

Protesilaos Stavrou

Arend-Jan Boekestijn (in Dutch)

I on Europe

WSJ Emerging Europe

FT Alphaville

Reinhard Bütikofer MEP (in German)

Kantoos Economics (bilingual German & English)

Open Europe blog

Lost in EUrope (in German)

Guardian Comment is free Europe (all areas)

WSJ Real Time Brussels

Berni's View (bilingual English & German)

Karpfenteich (in German)

Beyond Brussels (daily digest)

Social Europe Journal

Yanis Varoufakis

IIEA blogoshere (a number of writers)

Euro area debt crisis

Telos politique économique (in French)

French Politics

EU Weekly (bilingual French & English)

Revolting Europe

FinancialGuy

FT Brussels blog

European Welfare States

€uro-thoughts

A Fistful of Euros

Eurdemocracy

Place du Luxembourg

Crooked Timber

Coulisses de Bruxelles (economic and political issues, in French)



Ralf Grahn

EU2020 growth reforms Denmark: Policy outcomes

How does the Europe 2020 strategy for smart, sustainable and inclusive growth (EU2020) turn into reality in the EU member states? Indeed, after the failed Lisbon strategy we need to ask: Does it?

At least, through common statistics, shared goals and constant contact the European Union offers politicians and officials the opportunity to learn from the best.

Within the framework of the European semester, each member state submitted its macroeconomic stability or convergence programme according to the stability and growth pact (SGP), as well as its national reform programme (NRP) for structural reforms enhancing competitiveness and growth.

Denmark – of flexicurity fame – is one of the most competitive, innovative, inclusive - over all successful EU economies and societies.

Even if Denmark is also known for public expenditure above 50 per cent of GDP and correspondingly high taxes, the Nordic country is a reform model worth studying and learning from, if we want growth and jobs (a high employment rate) in Europe.

Before we turn to the national reform programme and policies, we need to get acquainted with Denmark.


Denmark in a nutshell

The OECD Government at a Glance 2011 offers us an astonishing amount of economic and administrative information on just four pages. I want you to give them careful thought:

Country note Denmark (24 June 2011)

The OECD Better Life Index for Denmark links to additional information concerning eleven policy areas (topics): housing, income, jobs, community, education, environment, governance, health, life satisfaction, safety and work-life balance. Which Better Life Index policy outcomes do you find most desirable, most worthy of emulation?



Ralf Grahn

European Council blogging: Part Five (11042011)

Previous round-ups of my blog entries were published in Part One, with articles posted 25 and 26 March, and Part Two, which took us from 27 to 29 March 2011.

Part Three linked to blog posts published from 30 March to 1 April, and Part Four presented entries posted between 2 and 5 April 2011.

The blog posts appear on four blogs and in three languages: on Grahnlaw (EN), Grahnblawg (SV), Eurooppaoikeus (FI) and Grahnlaw Suomi Finland (EN, FI, SV).

The articles in Part Five were posted between 6 and 9 April 2011.

By the way, this is the 1,999th post on Grahnlaw (in English).


Europe 2020 strategy

Part Five collects articles concerning the Europe 2020 strategy for smart, sustainable and inclusive growth. The blog entries were published between 6 and 9 April 2011 and they try to inform readers about the Europe 2020 strategy (EU2020) in the European Council, but including activities by the European Commission, Council configurations (Ecofin and EPSCO) and the Hungarian presidency of the EU Council.

Grahnlaw Suomi Finland: Deficit reduction 2012: European Council on goals and means (6 April 2011)

Grahnlaw Suomi Finland: European Council: Europe 2020 reforms (7 April 2011)

Grahnlaw Suomi Finland: Next steps towards Europe 2020 headline targets (8 April 2011)

Grahnlaw Suomi Finland: Europe 2020: Integrated Guidelines and later add-ons (9 April 2011)

The latest blog post have been the European Council round-ups here on Grahnlaw.



Ralf Grahn



P.S. Eurozine is a network of Europe's cultural journals, linking more than 75 partner journals and as many assoiciated magazines and institutions from almost all European countries. This is one European online public space you should not miss.

European Council blogging: Part One (10042011)

My latest collection of blog posts was presented on Grahnlaw (in English) a little more than two weeks ago: European Council blogging (24032011).

It is easier to find the relevant subject, if I offer myself and others an overview of the later blog entries on the economic policy theme at the spring European Council.

The blog posts appear on four blogs and in three languages: on Grahnlaw (EN), Grahnblawg (SV), Eurooppaoikeus (FI) and Grahnlaw Suomi Finland (EN, FI, SV).


Tripartite Social Summit

After an earlier introduction, a few blog entries presented the public statements of the participants in the Tripartite Social Summit, the social partners (employers, employees and EU institutions).

Grahnlaw Suomi Finland: Tripartite Social Summit: Unions and PES (25 March 2011)

Grahnlaw Suomi Finland: Reform camp leaders ahead of Tripartite Social Summit and European Council (25 March 2011)

Grahnlaw Suomi Finland: Tripartite Social Summit and European Council: EU views (25 March 2011)

Grahnlaw Suomi Finland: Tripartite Social Summit and European Council: Business views (25 March 2011)


Spring summit in a nutshell

After the spring European Council, I looked at the available links and materials, as well as the brief economic messages from the European leaders.

Grahnlaw: Spring European Council summary (26 March 2011)



Ralf Grahn




P.S. After an interesting ranking of top European media in French on Europe 27etc, ”Jamel de L'or” returned with a useful top ten of the European affairs media to follow in English (plus ten others, although the wrong link was offered for Grahnlaw).

Spring European Council summary

Following the two days of the European Council meeting, we look at the materials on offer to those who want to know more.


First day summary

After the first day, 24 March 2011, the European Council communicated 'A collective guarantee of eurozone stability', which announced agreement on the European Stability Mechanism (ESM), which will replace the temporary European Financial Stability Facility (EFSF), as well as the conclusion of the Euro Plus Pact, which will be joined by Poland, Denmark, Bulgaria, Romania, Lithuania and Latvia.


EUCO summary page

The official summary of the spring European Council 24 to 25 March 2011 is on offer on the web page 'Deal on reinforced economic governance'.

With regard to the economic policy issues, the web page presents the following brief overview, with a few seemingly helpful links to more detailed sources:

Economy

As part of the governance package, the summit finalised the European Stability Mechanism (ESM), a permanent fund which in 2013 will replace the temporary one to support eurozone countries in the event of major economic difficulties. It also adopted the Euro Plus Pact, which will step up economic coordination with the aim of improving competitiveness. In addition to the eurozone countries, Bulgaria, Denmark, Latvia, Lithuania, Poland and Romania have decided to participate in the Pact, which remains open for other EU member states to join.

Within the new framework of the European Semester, a six-month period during which member states' economic and budgetary policies are monitored in parallel, the European Council endorsed the priorities for fiscal consolidation and structural reform. All member states will translate these priorities into concrete measures to be included in their Stability or Convergence Programmes and National Reform Programmes.

European Council conclusions

The web page links to the conclusions of the spring European Council in English:

European Council: Conclusions 24/25 March 2011; Brussels, 25 March 2011 (EUCO 10/11; 34 pages)

However, the European Council conclusions are available in all 23 official EU languages.

Page 1 offers a brief introduction to the economic (and other) issues:

Over the last months, Europe has gone through a serious financial crisis. Although economic recovery in Europe is now on track, risks remain and we must continue our determined action. We adopted today a comprehensive package of measures which should allow us to turn the corner of the financial crisis and continue our path towards sustainable growth. This package will strengthen the economic governance of the European Union and ensure the lasting stability of the euro area as a whole. We also agreed robust action at the EU level to stimulate growth by strengthening the Single Market, reducing the overall burden of regulation and promoting trade with third countries.

European Stability Mechanism (ESM) etc.

If we return to the summary page, the link concerning the European Stability Mechanism (ESM) takes us back to the general conclusions of the European Council.

So does the link for the Euro Plus Pact.

Likewise for the link about the European Semester.

In other words, after the end of the second day these links offer us nothing beyond the official conclusions of the European Council. They have become redundant.

The same goes for some other links on the home page of the European Council.



Ralf Grahn

PM Reinfeldt on Sweden in the EU

Here is just a quick post for those who may be interested in Sweden in the European Union, but may be unaware of the existence of the prime minister's speech and of the English version of it.

Today, the prime minister of Sweden, Fredrik Reinfeldt, outlined his country's late and cautious road to European integration, as well as the Swedish government's view of the challenges facing the union. These were the central reform themes for the future, according to Reinfeldt:

- how can the EU increase its economic growth, employment rate and competitiveness?
- how can the EU combat climate change?
- how can the EU promote and safeguard people's mobility across borders?
- how can the EU modernise its budget?
- how can the EU be a strong foreign policy actor that champions the values on which European cooperation is based?

The most obvious of these challenges lies in Europe's economic situation.

As the leader of one of the most successful EU member states, Reinfeldt speaks with some authority.



Ralf Grahn

EU General Affairs Council (GAC) communication: Wrong, stupid and a missed opportunity

Yesterday I published two blog posts in Swedish regarding the upcoming meeting of the General Affairs Council (GAC) the same day, 21 February 2011. The first entry looked at how the advance material published centrally by the Council managed to enlighten and engage the public. My conclusion was that despite coordinating heavyweight issues, the governments seem to exclude the citizens of the European Union on purpose: EU-rådet för allmänna frågor 21 februari 2011: Bedrövlig förhandsinformation.

I wondered how long the Nordic ministers participating in the GAC meetings would tolerate such lousy information before revolting, so in the second post I took a closer look at how the governments in Sweden, Finland and Denmark informed domestically about the issues on the agenda of the General Affairs Council. Sadly, even the Nordic governments seemed to have missed the GAC as an opportunity to communicate in any meaningful way or to invite valuable contributions from the wider society: EU-rådet för allmänna frågor: Vad gör Norden?

In my view, the GAC could be an important stock-taking and engaging milestone on the road towards improved guidelines from the European Council summits.


GAC conclusions

If the advance information was lousy, how much did the GAC meeting improve matters with regard to economic coordination and progress?

We now have the press release from the Council, with the GAC conclusions:

3068th Council meeting General Affairs; Brussels, 21 February 2011 (Council document 6762/11; 8 pages)

With regard to the follow-up of the February European Council, we are informed that:

The Council took stock of the follow-up to be given to the European Council's meeting on 4 February, which [only officially; my addition] focused on energy and innovation.

Not a word, not a document about substance, how guidelines are put into practice or preparations advancing.

***

With the eurozone crisis, economic governance, the ”competitiveness pact” and the Europe 2020 growth reforms, the future of European Union citizens hangs in the balance at the the March European Council.

How does the General Affairs Council improve our knowledge and reassure us about progress being made towards needed reforms?

Here are the GAC conclusions:

The Council examined a draft annotated agenda for the European Council meeting to be held on 24 and 25 March, drawn up by the President of the European Council in cooperation with the presidency and the Commission (doc. 6231/11).

The March European Council is due to focus on:

Economic policy: Conclusion of the first phase of the European Semester (annual monitoring of budgetary policies and structural reforms), adoption of a decision amending the Treaty on the Functioning of the European Union with regard to the future European Stability Mechanism (ESM), finalisation of work on the ESM and on the strengthening of the European Financial Stability Facility, finalisation of work by the Council on legislative proposals on economic governance, and a decision on economic policy coordination in the euro area.

– Developments in the EU's southern neighbourhood and follow-up to the 4 February European Council declaration on Egypt.

Not a word, not a document indicating anything of substance, any indication of progress.

Does anyone find even a shred of new and valuable information compared with the already poor background note published before the GAC meeting or the old draft agenda?


GAC – missed opportunity

Despite the treaty based obligation to ensure a maximum of openness, the General Affairs Council and the European Council have, in tandem, adopted working habits and communication patterns designed to keep the public without any meaningful information about how crucial political issues are advancing.

Not only is this 'modus operandi' legally and morally wrong, it is stupid, counterproductive and a great opportunity missed to boot.



Ralf Grahn




P.S. What do Neelie Kroes, Andris Piebalgs, Maria Damanaki, Kristalina Georgieva and Cecilia Malmström have in common? They belong to the blogging minority among members of the European Commission. Kudos to them and to the Commission representation and services blogs you find behind the link.

P.S. 2: Political and macroeconomic guidelines emanating (or not) from the European Council and Council configurations at the top are important for our future, as are the questions of accountability and transparency from the viewpoint of EU citizens.

Details of internal market reform (Single Market Act) and the Europe 2020 strategy (EU2020 flagship initiatives) are going to be among my recurring themes as well.

On my Euroblogs I want to discuss legal and political issues relevant to European enterprises, jobs, employers and employees, consumers and citizens, especially in cross-border situations.

Hopefully my blogs succeed in educating and guiding readers towards relevant sources. For me the blogs offer continuous updating and disciplined study as basic training for my teaching and legal counseling activities.

My blogs are: Grahnlaw (in English), Grahnblawg (in Swedish) and Eurooppaoikeus (in Finnish), as well as downstream the trilingual Grahnlaw Suomi Finland (usually later, with more sediment). On topic comments are most welcome.

If we share an interest in the European economy, business, politics or law, we could get acquainted through Twitter @RalfGrahn or Facebook.