20 Eurozone economic governance: Economic
Partnership Programmes
| (a)
(35584)
16784/13
COM(13) 902
(b)
(35585)
16785/13
COM(13) 904
(c)
(35586)
16786/13
COM(13) 909
(d)
(35587)
16787/13
COM(13) 910
(e)
(35588)
16788/13
COM(13) 911
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Draft Council Opinion on the Economic Partnership Programme of Spain
Draft Council Opinion on the Economic Partnership Programme of France
Draft Council Opinion on the Economic Partnership Programme of Malta
Draft Council Opinion on the Economic Partnership Programme of the Netherlands
Draft Council Opinion on the Economic Partnership Programme of Slovenia
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| Legal base | Articles 121(6) and 136 TFEU; —; QMV of eurozone Member States
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| Documents originated | 15 November 2013
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| Deposited in Parliament | 29 November 2013
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| Department | HM Treasury
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| Basis of consideration | EM of 11 December 2013
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| Previous Committee Report | None
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| Discussion in Council | 10 December 2013
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| Committee's assessment | Politically important
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| Committee's decision | Cleared
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Background
20.1 In May two Regulations, Regulation (EU) No.
472/2013 and Regulation (EU) No. 473/2013, the so-called "Two
Pack", were adopted to strengthen economic governance in
the eurozone. The second Regulation requires eurozone Member States,
which are in the excessive deficit procedure of the Stability
and Growth Pact (SGP), to submit to the Commission and Council
Economic Partnership Programmes and the Council to adopt Opinions
on the programmes. The programmes are to contain a number of structural
reforms to increase growth and competitiveness and to fight unemployment.
The documents
20.2 The Commission presents these draft Council
Opinions on the Economic Partnership Programmes of Spain, France,
Malta, the Netherlands and Slovenia. Each programme was drawn
up with respect to the Member State's fiscal targets under the
SGP, on the basis of the Commission's 2013 Autumn Forecast. These
drafts are supported by comments in the Commission's Staff Working
Documents relevant to the Commission Opinions, under Regulation
(EU) No. 473/2013, on the draft budgetary plans for 2014 of these
Member States and in the Commission Communication accompanying
those Opinions.[95]
Spain
20.3 The draft Council Opinion for Spain, document
(a):
· concludes that the reforms in the programme
are "broadly supportive of an effective and lasting correction
of the excessive deficit";
· says that some recommendations made by
the Council in Spain's Country Specific Recommendations (CSRs)
issued in July, in the context of the 2013 European Semester,
are only partly addressed by concrete measures, but in most cases
the reforms still remain to be adopted and/or fully implemented;
· gives as examples systematic review of
spending, with a view to improving the efficiency of public expenditure,
as in CSR 1, and review of the tax system, as in CSR 2; and
· notes that the Commission and the Council
will monitor the execution of the reforms in the context of the
European Semester.
France
20.4 The draft Council Opinion for France, document
(b):
· says that the programme includes a set
of fiscal and structural reforms that is "partly adequate
to support an effective lasting correction of the excessive deficit";
· notes that further efforts to address
fiscal and structural imbalances are required; and
· therefore invites France to submit additional
information in its National Reform Programme and Stability Programme
(to be presented for the 2014 European Semester) on reforms to
increase the efficiency of public spending and to improve coordination
between central and local government levels.
Malta
20.5 The draft Council Opinion for Malta, document
(c):
· says that the reforms contained in the
programme are "partially adequate to support the achievement
of a sound fiscal position", but that implementation risks
remain as all reforms are work-in-progress;
· highlights that some of the CSRs are still
to be addressed, such as the recommendation to modify corporate
taxation, CSR 1; and
· therefore invites Malta to provide additional
information on the implementation of the planned reforms in its
National Reform Programme and Stability Programme, while also
considering additional measures.
The Netherlands
20.6 The draft Council Opinion for the Netherlands,
document (d):
· says that the programme includes a "broadly
adequate set of fiscal and structural reforms";
· notes that the reforms would be supportive
of a lasting correction of the excessive deficit, but that the
programme lacks information regarding implementation risks around
the reforms; and
· invites the Dutch authorities to provide
additional information on the implementation of planned reforms
in their National Reform Programme and Stability Programme.
Slovenia
20.7 The draft Council Opinion for Slovenia, document
(e):
· says that the reforms included in the
programme are "partly adequate to support an effective and
lasting correction of the excessive deficit";
· emphasises, however, that measures need
to be comprehensively implemented to deliver the expected results,
in particular regarding restructuring of the banking sector; and
· invites Slovenia to provide additional
information on the envisaged reforms in the upcoming National
Reform Programme and Stability Programme.
The Government's view
20.8 The Economic Secretary to the Treasury (Nicky
Morgan) says that:
· the documents have no policy or budgetary
implications for the UK;
· the Government believes that Member States
should take forward fiscal consolidation as a priority to reduce
their deficit and support recovery;
· the draft Opinions were endorsed by the
ECOFIN Council on 10 December; and
· as eurozone measures, the UK did not contribute
to the discussion.
Conclusion
20.9 Whilst clearing the documents, we draw them
to the attention of the House as illustrative of how the newly
enhanced system of economic governance is operating for eurozone
Member States.
95 (35567) 16587/13 + ADD 1 (35568) 16589/13 + ADD
1 (35569) 16590/13 + ADD 1 (35570) 16602/13 + ADD 1 (35571) 16604/13
+ ADD 1: see chapter 19 in this Report. Back
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