2020 European semester: country-specific recommendations

SUMMARY OF:

Communication from the Commission — 2020 European semester: country-specific recommendations

European semester: integrated country-specific recommendations

WHAT ARE THE AIMS OF THE COMMUNICATION AND THE RECOMMENDATIONS?

Reflecting the socioeconomic reality of the COVID-19 crisis, the European Commission 2020 European semester recommendations are structured around two areas to encourage Member States to strengthen the resilience of their economies, in particular:

providing an immediate economic policy response to tackle and mitigate the health and socioeconomic impact of the COVID-19 crisis in the short term;
restarting economic activity and putting growth back on track, fostering the green transition and the digital transformation in the short to medium term.

KEY POINTS

Competitive sustainability

The annual sustainable growth strategy, adopted by the Commission in December 2019, focuses on promoting competitive sustainability to build an economy that works for people and the planet. The country-specific recommendations issued to EU Member States build on this goal and focus on the four pillars of competitive sustainability:

economic stability,
social fairness,
environmental sustainability, and
productivity and competitiveness, as well as a specific emphasis on health.

The COVID-19 pandemic has revealed how interconnected these aspects are and how any recovery strategy must recognise this.

The recommendations also reflect the Commission’s commitment to integrating the United Nations’ sustainable development goals into the European semester for their integrated framework covering public health, social, environmental and economic concerns.

Stability

The 2021 recommendations take into account the need to tackle the pandemic and to facilitate economic recovery as an important step to prevent new imbalances from emerging in the future. Member States must be allowed to temporarily depart from budget commitments to preserve jobs, help companies and support a robust recovery. A supportive fiscal regime will facilitate the recovery of consumption, investment and growth.

The recommendations include:

completing an economic and monetary union;
sound public finances;
a stable financial sector;
preventing domestic and external imbalances;
structural reforms to boost productivity.

Fairness

Preserving jobs and providing adequate unemployment benefits and income replacement for all workers are important. Ensuring occupational health and safety and guaranteeing the right to develop skills, particularly digital, are top priorities. Tackling inequalities and poverty, and protecting vulnerable groups are also a focus.

The recommendations include:

implementing the European Pillar of Social Rights;
fighting poverty;
investing in skills and health;
gender equality;
fair taxation;
social and territorial cohesion;
job quality.

Environmental sustainability

Recovery investment creates the opportunity to reshape the EU economy and make it more sustainable. National authorities should identify projects that can boost climate neutrality, especially in the industrial and transport sectors. The European Green Deal and the national energy and climate plans should guide investment.

The recommendations include:

boosting sustainable investment;
clean and efficient production and use of energy;
green taxation;
carbon neutrality;
shifting towards a more circular economy.

Productivity and competitiveness

Productivity growth and a smooth functioning of the internal market are crucial in a robust recovery. Policies should promote innovation, investment in digitalisation, education, skills and training, a supportive investment environment and well-functioning labour markets.

The recommendations cover:

research and innovation;
digitalisation;
efficient and competitive markets;
a strong industrial base;
support for small and medium-sized enterprises;
access to finance;
a favourable business environment;
the internal market.

Healthcare

The immediate response to the COVID-19 pandemic included measures to increase the supply of critical medical products, extend laboratory capacity and intensive care units and recruit additional health workers. Among the measures by the Commission to directly support national health systems are:

calls for tender for medical equipment and supplies to create a strategic stockpile of essential medical supplies for EU Member States;
support for research on vaccines, diagnostics and treatment;
support health workers’ working conditions.

Council recommendations

On 20 July 2020, the Council adopted country-specific recommendations and called on Member States to implement them fully and in a timely manner.

BACKGROUND

MAIN DOCUMENTS

Communication from the Commission to the European Parliament, the European Council, the Council, the European Central Bank, the European Economic and Social Committee, the Committee of the Regions and the European Investment Bank — 2020 European Semester: country-specific recommendations (COM(2020) 500 final, 20.5.2020)

European Semester: integrated country-specific recommendations, Council of the European Union, 24.6.2020

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last update 30.07.2020