Recommendation 2015/1184 - Broad guidelines for the economic policies of the Member States and of the EU - Main contents

EN

Official Journal of the European Union

L 192/27

The Treaty provides that Member States are to regard their economic policies as a matter of common concern and coordinate them within the Council. The Treaty further provides that broad economic policy guidelines and employment guidelines are to be adopted by the Council to guide Member State and Union policies.

In accordance with the Treaty, the Union has developed and implemented policy coordination instruments for fiscal policy and macro-structural policies. The European Semester combines the different instruments in an overarching framework for integrated multilateral economic and budgetary surveillance. The streamlining and strengthening of the European Semester, as set out in the Commission's 2015 Annual Growth Survey, should further improve its functioning.

The financial and economic crisis revealed and emphasised important weaknesses in the economy of the Union and its Member States. It has also underscored the close interdependence of the Member States' economies and labour markets. Moreover, the strong increase in public debt levels has created risks for fiscal sustainability. Moving the Union to a state of smart, sustainable and inclusive growth and job creation is the key challenge faced today. This requires coordinated and ambitious policy action at both Union and national levels, in line with the Treaty and Union economic governance. Combining supply and demand side measures, that policy action should encompass a boost to investment, a renewed commitment to structural reforms and exercising fiscal responsibility.

Member States and the Union should also address the social impact of the crisis and aim at building a cohesive society in which people are empowered to anticipate and manage change, and can actively participate in society and the economy. Access and opportunities for all should be ensured and poverty and social exclusion reduced, in particular by ensuring an effective functioning of labour markets and social welfare systems and removing barriers to labour market participation. Member States should also make sure that the benefits of economic growth reach all citizens and all regions.

Action in line with the integrated guidelines for the economic and employment policies of the Member States is an important contribution to reaching the goals of the Europe 2020 strategy for smart, sustainable and inclusive growth (‘Europe 2020 strategy’). The Europe 2020 strategy should be underpinned by an integrated set of European and national policies, which Member States and the Union should implement in order to achieve the positive spillover effects of coordinated structural reforms, an appropriate overall economic policy mix and a more consistent contribution from European policies to the objectives of the Europe 2020 strategy, and in order to ensure the smooth functioning of the Economic and Monetary Union. The broad guidelines for the economic policies of the Member States and of the European Union, annexed to this Recommendation, and the relevant guidelines for employment policies form together the integrated guidelines for implementing the Europe 2020 strategy (‘Europe 2020 integrated guidelines’).

While the Europe 2020 integrated guidelines are addressed to Member States and the Union, they should be implemented in...