Government newsletter - Continued focus on the economy in the EU
24 February 2012

Continued focus on the economy in the EU

Few will have failed to notice that the economic crisis has tightened its grip on Europe. In Greece in particular, the crisis has seriously impacted people's everyday lives. But other countries too have huge national debts and need to implement major reforms. And so the economic crisis is once again the weighty topic on the agenda when EU heads of state and government gather for a new summit in Brussels on 1-2 March.

Over the last few years, the economic crisis has been a persistent topic of discussion among politicians in European capitals. The EU summits are among the forums where the crisis is constantly on the agenda. In Brussels next week, the discussions will not only centre on the immediate crisis management actions but also on longer-term growth issues. These will include the proposals presented by the European Commission in the Annual Growth Survey last year on how to promote employment and growth up to 2020. The aim is to establish the overall priority actions the EU countries must take to achieve the targets.

European semester to combat deepened crisis

The European semester is also on the agenda. Approved in 2010, the European semester involves a yearly evaluation of the Member States' budgetary and structural policies. Its purpose is to detect emerging imbalances at an early stage to prevent the crisis from deepening further. At the end of April, the Member States will inform the European Commission of the measures they intend to take, so that in late spring the Commission can issue recommendations on how each of the Member States should best proceed.

Greater cooperation increases growth

The Swedish Government supports an efficient implementation of the European semester and endorses the overall messages of the Commission's Growth Survey. Sweden believes that powerful messages from the EU are essential to dampen the crisis - both at national and EU level. For example, Sweden believes it is important that the EU Member States implement reforms to promote increased youth employment and increase women's participation in the labour market. Measures are also needed at EU level to strengthen the single market and further promote open trade between countries.

Studies show that a well-functioning digital single market could increase GDP growth in the EU by 4 per cent by 2020. A fully functioning single market for services could increase GDP by a further 1.5 per cent. And, according to some studies, if women engaged in paid work to the same extent as men, GDP in the eurozone could rise by between 10 and 15 per cent. But for this to happen, further reforms are needed.

Enlargement back on the agenda

Another issue that EU leaders will be discussing next week is the further enlargement of the EU. The heads of state and government are expected to take a position on whether Serbia is to receive candidate country status, which would require a preparatory phase to begin EU membership negotiations. One condition for this is that Serbia makes progress in its talks with Kosovo, which the Swedish Government believes Serbia has done to an adequate extent. If Serbia qualifies as a candidate country, this would have important implications for the development of the entire Balkan region and its ties with the EU.

From Arab Spring to Syrian winter

Developments in the EU's southern neighbours remain on the EU agenda. The Arab Spring began just over a year ago. While the rest of the world has witnessed some welcome progress in countries like Tunisia and Egypt, the situation in Libya continues to be volatile. In Syria, the situation is unacceptable. For some months, the populations demands for freedom and democracy have been met with violence from the ruling regime. EU leaders will discuss this situation and, more specifically, what can be done to bring an end to the violence in Syria and how the EU can continue to assist all of these countries in their transition to open and democratic societies.

EU pushing ahead in lead up to Rio

Preparations ahead of the Rio+20 Conference on Sustainable Development will also come up next week. The Conference will take place in Brazil at the end of June and, as the name suggests, marks twenty years since the first climate change conference was held in the same city. In June, talks will focus on the way forward and what concrete actions can be taken to speed up the transition to a more sustainable economy that protects our climate and our environment. The EU has long held a leading position in the international climate negotiations. It also plans to play a leading and driving role in the lead up to the Rio Conference.

  • government.se/sb/d/15451/a/181900">Stockholm+40 - international conference on Sustainable Development

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