| Author (Corporate) | European Commission |
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| Series Details | COM (2015) 690 |
| Publication Date | 26/11/2015 |
| Content Type | Policy-making |
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The European Union’s economy is experiencing a moderate recovery. The pace of activity is expected to accelerate gradually. Unemployment has been falling but remains at a historically high level. The recovery benefits from temporary positive factors including low oil prices, a relatively weak euro and accommodative monetary policies. It also reflects the first effects of reforms implemented in the last few years. At the same time, security concerns and geopolitical tensions have intensified and the global economic outlook is becoming more challenging, in particular in emerging economies. Economic performance and social conditions, as well as reform implementation, remain uneven across the EU. Many economies still face the far-reaching challenges of high long-term and youth unemployment. Productivity growth remains slow, affecting competitiveness and living standards. High private and public debt levels contribute to holding back investment. Growth and employment are also constrained by the persistence of a number of macroeconomic imbalances. These are highlighted in the Alert Mechanism Report 2016 adopted alongside this Annual Growth Survey. The unprecedented inflow of refugees and asylum seekers over the last year has represented a significant new development in some Member States. This development has an immediate impact in terms of additional public expenditure in the short run. In the medium and longer term, it may also have a positive impact on labour supply and growth, provided the right policies are in place to access to the labour market and to the integration process. In this context, policies should be directed at consolidating the recovery and fostering convergence towards the best performers. Member States should take advantage of the current "tailwinds" to effectively implement ambitious reforms and pursue responsible fiscal policies. A renewed process of upward economic and social convergence is needed in order to tackle the economic and social disparities between Member States and within societies. Throughout its first year, the Commission has delivered on its announcements and presented ambitious initiatives to support jobs and growth, reinforce economic convergence and strengthen social fairness. The Commission's €315 billion Investment Plan for Europe to kick-start jobs and growth is up and running. The Commission has also made a series of concrete proposals to put in place the building blocks of the Single Market Strategy, Capital Markets Union, Energy Union and the Digital Single Market. Important steps were taken to ensure fair and efficient corporate taxation. The Commission ensured a swift follow-up to the roadmap for deepening of the Economic and Monetary Union (EMU) set out in the Five Presidents' Report. Finally, the Commission continues to work consistently and continuously on promoting a coordinated European response to the refugee and migration issues. This Commission set out its jobs and growth strategy last year when presenting its 2015 Annual Growth Survey. Today it puts forward the priorities for the coming year with its 2016 Annual Growth Survey. Bringing recovery to a sustainable path and reviving the convergence process can only be achieved if all EU Institutions and Member States act together. This requires close involvement of the European and national Parliaments, social partners, national, regional and local authorities and the civil society at large. In line with its proposal set out in the Communication on completing the EMU, the Commission has engaged with the European Parliament prior to the presentation of this Annual Growth Survey. The European Parliament will continue to play its guiding role and provide political orientation on economic and social priorities. The role of national Parliaments is particularly valuable to strengthen democratic accountability, transparency and promote ownership of the reforms. |
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| Source Link | http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2015:690:FIN |
| Related Links |
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| Subject Categories | Economic and Financial Affairs |
| International Organisations | European Union [EU] |
