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Brussels charts path towards ‘deep and genuine’ economic union

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Published 21 March 2013

The European Commission proposed new ways on Wednesday (20 March) to coordinate eurozone economic policies, together with a cash incentive for change, as part of a plan to create an economic union to complement the single currency.

The Commission said eurozone states should discus important reforms with others in the single currency area before making the final decision to go ahead.

"Plans for the most important economic policy reforms [should be] assessed and discussed at EU level before final decisions are taken at the national level," the EU executive said in a statement outlining the proposed reforms.

"In this process, the Commission and Council of Ministers can suggest changes to the plans," the Commission added, in proposals likely to generate criticism from those defending national sovereignty over economic issues.

Special focus should be given to coordinating reforms concerning competitiveness, employment, product and services markets, network industries and tax systems, among others.

"That way, any positive or negative spillovers of the reforms on other EU countries can be properly taken into account early on in the decision-making process," the Commission said.

The EU executive arm also proposed to create a Competitiveness and Convergence Instrument (CCI).

This would allow the Commission to sign a contract with a eurozone government in which the country would commit to certain reforms and deadlines by which they would happen in return for financial support for the implementation of the changes, like for training or "active labour market policies".

The proposals are in line with what EU leaders asked for at their summit last December and will be discussed in more detail at their next meeting in June.

EurActiv.com with Reuters

COMMENTS

  • And still Brussels fiddles while the Euro burns! These people need to take a long hard look at what they have created with the Euro. The first domino is about to fall Cyprus and the rest will soon follow. And still they talk of expansion!

    By :
    Philip royle
    - Posted on :
    21/03/2013
  • Given how badly the introduction of the euro has been i.e.letting in bad risks such as Greece,Potugual, Spain etc., given the crass stupidity shown over the Cyprus small depositors fiasco (why weren't Greek, Spanish, Irish et al depositors made to pay a levy as well?), why would anybody in their right mind let this band of jokers take overall control of their economies? I think its bad enough with our bunch of tossers in the UK (that's tossers from all main parties, by the way) but to extend control over it to the other elected and non-elected wankers throughout Europe just beggars belief

    By :
    Don Latuske
    - Posted on :
    21/03/2013
  • Don, there are about 14 Eu countries that have never contributed to the EU budget. Spain joined in 1987(?) and since then it has NEVER contributed one penny to the EU budget. On a Monday Spain sends it's contribution to the EU. On Tuesday the EU sends in back to Spain, and on Wednesday the EU gift's Spain a load more cash, and Thursday, Friday Saturday and Sunday WTF!!
    Thats been going on since Spain joined. There are a couple of countries that have, now and again, contributed, but only for a few years. The EU is 11 countries that feed a charity bowl that 16 countries feed off. Spain Portugal, Greece, Cyprus, Most of the Eastern block new members. All just dead weight charity cases. The only good thing about the Euro is that the UK had the sense not to join it! The only reason the EU wanted us to join it is that we could share in the suffering!

    By :
    Philip royle
    - Posted on :
    21/03/2013
  • Tell it to the Cypriots

    By :
    Edward99
    - Posted on :
    21/03/2013
  • Philip, you talk about the UK as if its something special and the Eurozone needs them so much...

    While I do agree that countries like Greece and Portugal has become more of a charity case it does not help to be selfish. Be the change you want to see in the world.

    Dont forget the UKs trade def, and debt is higher than the Eurozones and its not long ago the UK was forced out of the pre Euro common currency 1992 since the economy was not strong enough to stay in. SO please spare us.

    The richest states like New York and Texas give far more money (about 20% compared to 1% in the EU) to the poorer once in the US and they dont complaint but only selfish Brits does. I hope Britan leaves the EU in 2017 and see how well you will do by youself.

    Seem like Brits prefer to send aid to corrupt african countries where the money is lost than to aid their European sisters and brothers...

    Your GDP is only about 15% of the total EU GDP. Alone, nobody will take you serious. or better yet, become part of the US, that is if they will take you in...

    And by the way, the Euro is not going anywhere. Every year since its creation they said that its the end of the Euro but its still 20% stronger than when it was created, while the british pound has dropped some 20% to the dollar over the last few years... There are only 2 relevant currencies in the world, and none of them are the British pound!

    Selfishness is just not the way forward in the world. Dont forget the UK also recieved money from the Marshall plan after WW2...

    By :
    Christian
    - Posted on :
    24/03/2013
  • Christian, you seem to think the Euro is some sort of virility symbol, 20% stronger blah blah blah. Only 3 or 4 countries in Europe benefit from it, mostly Germany that is. As for the rest of your tirade, I agree that the UK should leave and govern itself; I expect you are French but accept rule from nominally Brussels but in reality Berlin.

    By :
    Edward99
    - Posted on :
    24/03/2013
  • Dear Christine, As an English man I can say that the UK is not great. The only deluded people that think it's still great are the idiots that sit in Parliament. No Christine, the Great has gone from Britain.
    There are 27 countries in the European Union. Now this is a fact, something that an American would find hard to understand. 14 of those countries have NEVER contributed ANYTHING to the EU budget. Do you understand that, NOTHING. Spain for example Joined in 1986 since then it has been given it's contribution back plus billions. Now add that to Portugal, Ireland etc.
    Greece, 1991 it joined. NEVER paid a penny received loads and the country is bust. How long do you give people to get it right? Question Where has all the money gone?
    Google 'El Pias' it a Spanish news paper in English. One of the top stories is about 50 million thats 'missing' This is just part of a corruption story that is thought to amount to between 750 million to a billion euros..... missing presumed stolen! That's where EU money goes. Spain is just one example Greece where tax avoidance is a national pass time and some would say is obligatory!

    What New York and Texas has to do with Europe I have no idea, that's your country. I have no interest in a country that is as morally bankrupt that allows fire arms in schools! So please don't lecture me!
    The British people would prefer not to send money to African countries. Unfortunately we have, for the time being, a Prime Minister who does. Makes him feel good!. There is not a great deal we can do about that until the next election.
    As for trade if the UK didn't have it's hands, legs and ba-l's tied up by the EU for so long , maybe we would be a dam sight better off. Even now the EU is attacking the last institution we have, the City.

    As for your last swipe about WWII Any money we may have received from North America has been paid for in British soldiers blood backing your country up in wars illegal or other wise. Either by enemy fire or you military killing ours in friendly fire. I really don't like America so perhaps you should look to sorting your own country out. Letting fire arms in schools? WTF.

    By :
    philip royle
    - Posted on :
    24/03/2013
  • @ Edward.
    No, its just simple facts. What economist use...
    All countries benefits from the Euro in the long run. Germany does since their Mark would otherwise be much stronger and thereby it would be hard for Germans to export. For countries like Spain and Greece, they are now forced to reform instead of devalue their currency as they use to do which again will benefit them in 5-10 years from now.

    Im not french thanks you very much but Scandinavian. But would still rather be "ruled" by Berlin than London or Paris for that matter. but thats a whole other discussion which im not going into.

    @Philip
    My name is Christian and not Christine please and im not trying to lecture anyone. I just dont get why people, specially from the U.K think they are superior and always talk down on everything else than their own. If you dislike the EU so much, why are you spending your precious time on this Euro-site?

    I agree that it seem that some countries never seem to want to get off from the "EU steriods" but eventually they will. countries like Spain as you mentioned will go from a net receiver to a net contributer in 2015 or 2016, so its not forever.

    The point of the Aid is to get the low income countries to grow faster and get richer so they can import more Bentlys, farming equipment, wind mills, food etc. from the rest of Europe, so you could call it an investment in our own future. Even if these southern countries are not growing now they have grown very fast over the past 30 years. Compare them to countries like Argentina and Venezuela who didnt get any EU aid, you will find that in the 1970es and 80es they nominal gdp was almost equal but in 2013 Greeces, Italy and spains nominal Gdp per capita is almost 300% larger! So your 1% of gdp has not completely been waisted Sir.

    Its not only this U.K government who sent Aid to Africa and its not going to end with any new one neither but you can blame the EU for the aswell ;)

    So its okay to get "Aid" if youve just been to war but not if you been rules by a communist dictator for the past 30 years. and im not American and I think its far from perfect but we need at counter balance to the U.S world dominans before China takes that role. I would prefer a stronger EU but it seems, if the U.K cant lead, they prefere to go their own way. Atleast they can still rule N.Irland, wales and Scotland (for now).

    This it just my personal opinion and is in no way intended to offend anyone. Some of my best friends are Brits and they got the greatest humor. I like the U.Ks tax system and I wish the rest of the EU could adopt it eventually. Some countries are already starting to lower their corperate tax, hopefully more will follow.

    By :
    Christian
    - Posted on :
    24/03/2013
  • My sincere apologies Christian, I didn't read your name correctly.
    Why do I spend time on this site? Because I see it's my right to balance the Pro Euro lobby, lest we just have rings put through our nose's and are lead blindly along into the Federal States of Europe, God forbid. Or is this site only for the Pro Europhiles. who don't like it when people point out the faults of the system?

    Is questioning things being classed as being superior? Just because most of the population of the Uk doesn't agree with the rest of the EU are we to be insulted and called superior? I am not superior nether are my fellow country men, maybe it's that we just like to know where were going before we set off. So please no more with the 'superior' it doesn't wash. And I would take a look out side this site. You will be surprised to find that Euro Sceptics are all over Europe. Even in your precious Germany

    Your opening paragraph is probably the most telling. If it wasn't for the Euro the German economy wouldn't be as strong. Very good for Germany. but the rest? And you would rather be 'Ruled by Germany' Wow! I am sure many of your fellow country men and women would disagree. Personally I would prefer to be governed by my own Parliament in my capital city fully voted for by my fellow country men and women. Rather than just 11% of a EU parliament that is largely undemocratic. But that choice, your and mine.

    As for the 16 'beggar' countries there is more chance of me flying to the moon that there is of Spain being a net contributor by 2015. I know because I live there and know first hand the state of the Spanish economy and the mass corruption. that blights the nation. Could you tell me how things are going to change in the next two years? I am sure many of the governments would love to know!

    News flash Christian, the EU sends money to Africa! If you would care to look at the EU court of auditors report you will see how it's wasted. But at the end of the day some of the aid get through. How much does Scandinavia, Opps! not a country is it? Scandinavia is a group of little countries, isn't it? and Norway isn't in the EU. But hats off, the other three have been net contributors two since they joined and Denmark since 1998, But who's counting. I digress how much do you send to help Africa, what ever country you really come from?.

    I really think you need to get out and read a bit more Christian. The EU isn't a cosy club where everyone gets on together. The Eu isn't all bad it's that over the years it's grown to something thats much to powerful, to big, unaccountable and most of all undemocratic. Where nations are vilified for daring to speak out against things. So Christian take off your rose tinted glasses and see the real world and do a bit of digging into the functions and power of the EU. I promise you will be surprised and may change your view point from someone that just want to follow to someone that want's to lead.

    By :
    philip royle
    - Posted on :
    25/03/2013
  • @Philip.
    I get you and discussion is only healthy in a democracy, but you really dont have to worry. Even though im pro EU and a federal state, It will not happen in the next 30 years at least if ever, we are simply too egoistic and dont want to compromise our own state champions for the common good of Europe. The UK with its financial institutions, the French with its farms and the Germans export industry. Unless we are threatend by the future superpowers of India and China that is...

    Yes, the Brits like to know before they set of. Does that also apply when they invade other countries under false pretext as in Irak? Not that I mind Saddam being taken down, but the way Your government and the US lied to the world.

    Germany has mainly benefitted from deep reforms done under the Schroder government 10 years ago but the Euro has also helped. Germany should not be punished for keeping wages low and doing reforms. You ask who else has benefited? Well, both Greece, Spain and Portugal almost doubled their GDP between 2000 and 2008 in nominal terms. I call that progress.

    The reason the southern countries are in trouble now is the fact that they never bothered to reform when times were good and has to go thru the pain now instead unlike Germany. Thats not the Euros fault but the local governments. The main Job of the ECB is to keep inflation low (around 2%) and they have kept it at almost 2% constant since the launch which no other government can match incl. the British.

    Well, like I said, lets hope the UK will get to vote in 2017 so its over once and for all. We will still be allies against Argentina in a about 15 years LOL

    Regarding Spain, its just a fact. Spain will get growth back but that has nothing to do with the contribution they get from the EU. Last year Spain only received 0,04% of their GDP from EU which will be reduced to 0% by 2016. I also lived in Spain by the way, so im not complete blind the that place. Even Ireland and Italy is paying more to EU than it receives.

    News flash, the EU is the biggest foreign aid doner in the World so ofcause they send money to Africa. All im saying is that, when you leave the EU you will find that your own government will waist just as much as the Eu and make stupid rules and laws which will upset you but thats just the way it is. If you want to change it, become a politician and head to Bruxells or London and change things.

    Yes, Scandinavia is several countries and only Finland has the Euro. But even Norway who is not a memeber pays to the EU. All 4 scandinavian countries are net contributers and Denmark joined the EU in 1973 with the U.K. not in 1998.

    Ive lived the last 6 years in Africa so I do know a thing or 2 about corruption, infact im on of the few people who actually pay my full tax here. where ever that money goes.

    I do get out once in a while Philip but thanks for your concern. You can read this and get a heads up on the payments - http://en.wikipedia.org/wiki/Budget_of_the_European_Union

    I get EU is not all good, but better the devil you know. One day you will wake up and speak Chinese and wonder why we were not strong enough to protect ourselves. But dont forget, you wanted it that way. Lucky for me Im far away. I lived in East Europe from 2001 to 2006 and ive seen how pressure from EU can change a corrupt country for the better. It does not come overnight but no other insentive could have changed these countries so fast as the EU did. The thing is that we cannot sit and tell the other countries how to behave and then do as we like ourselves, that is double standart, so we must also listen when the EU has a something to say about our own country.

    The EU was created to stop any more self destruction wars in Europe and it has done exactly that (Kosovo not incl.) No single EU country will be rich enough go it alone, but for a middle size country and an ex empire i guess its a bit harder to accept.

    By :
    Christian
    - Posted on :
    25/03/2013
  • Christian, You are correct discussion is a part of a healthy democracy. But when that discussion is suppressed and threatened, as it is against the UK. That becomes a dictatorship, and very undemocratic, yes?
    All I read from the Pro Euro camp is how bad it will be for the UK to leave. How bad is is that the UK doesn't join the Euro. How bad it is that the UK wants to walk instead of run. How bad it is that the UK dare's to ask questions. Bad bad bad. Do you wonder why the people of the UK are sceptical? And I say again there are people who are suspicious about the EU all over Europe, not just the UK.

    As far as the illegal war the UK was dragged into yes you are correct. As far as I am concerned the UK should have non of it's soldiers on foreign soil and Blair should be standing trial in the Hague for war crimes.
    Germany dose what's best for Germany. So the UK should do what best for the UK? true?

    As for the charity nations. Even when Spain was doing fine there was still 20% unemployment. Despite having had backing of the EU for over 25 years it still hasn't prospered. In Spain right now over 50% of all 15 to 26 year olds are unemployed. That's just under 5,000,000 people. That the entire population of Latvia, Cyprus, Estonia and Malta combined. How is that going to change in the next two years? The EU is signing 'Free Trade' agreements all over the world.
    Say you were a Business man in Denmark. you employed 100 people in Denmark. But the EU made it easy for you to do business with Colombia. So you moved you business to Colombia. Cheaper work force and more profits for the businessman. But what about the Danish men and women who are now unemployed and being kept by the state....you. How do you feel now?

    Denmark did join the EU in 1973 but it wasn't a net contributor until 1998.

    Any way these post's are getting to long so I will cut this one short, save to say. You and I are not to far apart. I agree the EU or 'Common Market' (thats what I voted for all those years ago) is a good thing. The problem is it's grown into something too big and it needs to have it's power cut. I believe that the final decision on any law, treaty, contract, or what ever should rest with the national governments Not some unelected commissioners and the MEP's of 26 other countries.

    By :
    philip royle
    - Posted on :
    25/03/2013
  • Christian. The 5,000,000 Spanish people I refer to in the total unemployment figure for Spain which is at 26%(?) not just the 15 to 26 year olds. I missed a sentence out, sorry.

    By :
    philip royle
    - Posted on :
    25/03/2013

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