Annual Report on structural reforms 2005. Increasing growth and employment

This is the Ecofin Council's 2005 report on structural reforms, prepared by the Economic Policy Committee (EPC). In December 2004, the EPC conducted its annual peer reviews on the implementation of structural reforms by the Member States in the preceding 12 months. This year, these examinations have been advanced by one month to advise better the Council and the Commission ahead of the Spring 2005 European Council. This is also in conformity with the role that the Sapir Group (An agenda for a growing Europe: The Sapir Report, 2003) recommended the EPC to seek.

The report not only deals with the implementation record in the past year, but is also forward looking, signalling areas where further progress is required in Member States.

Overall, there has been some progress with structural reforms over the past 12 months, but the examinations confirmed Wim Kok's and Ecofin's assessment that much more urgency is needed with implementation. The EPC fully shares the view that a macroeconomic framework supportive of stability and growth is indispensable. Governments will reap the full benefits of structural reforms in terms of growth and employment only in an appropriate macroeconomic environment. At the same time successful structural reforms enhance the effectiveness of macroeconomic policies, ensuring long-lasting growth and the long-term sustainability of public finances. The EPC identified seven key areas pivotal for re-focusing on the core goals of the Lisbon Strategy - higher growth and employment. These recommendations take up the priority areas which were identified by the High-level Group chaired by Wim Kok and by the Ecofin Council of 16 November 2004. From the examinations, the need for urgent and intensified labour market reforms has emerged as a recurrent and particularly important theme. More action is needed to increase employment rates across all age groups. Further, the EPC stresses that all measures aiming to reform product, labour and capital markets have to be consistent with the overarching objective of fiscal sustainability.

Further information on the Sapir Report and the Kok Report can be found from the Related urls.

• Primary Source

ESO: In Focus: Sapir Report: An agenda for a growing Europe: Making the EU economic system deliver. Report of an Independent High-Level Study Group established on the initiative of the President of the European Commission, July 2003 http://gateway.proquest.com/openurl?ctx_ver=Z39.88-2003&rfr_id=&rfe_id=&svc_id=&rft_val_fmt=&res_id=xri:eso&rft_id=xri:eso:doc:066/0000494

ESO: In Focus: Facing the challenge. The Lisbon strategy for growth and employment. Report from the High Level Group chaired by Wim Kok, November 2004 http://gateway.proquest.com/openurl?ctx_ver=Z39.88-2003&rfr_id=&rfe_id=&svc_id=&rft_val_fmt=&res_id=xri:eso&rft_id=xri:eso:doc:066/0000504

European Commission: DG Economic and Financial Affairs: Structural reforms http://ec.europa.eu/comm/economy_finance/about/activities/activities_structuralreforms_en.htm

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