A set course

"There is no magic bullet, there is not going to be miracle solution, these issues take time and they require sustained effort and coherence". However, the Commission is "confident in Europe’s ability to overcome this crisis"; "deeper economic and financial integration is very important in terms of the solidity and irreversibility of the euro", "convinced of the benefits that our common currency has delivered and of those it will deliver in the future". José Manuel Barroso, president of EU Executive, on May 30 presented the "recommendations" to EU27 – along with a document covering the entire euro area – in order to contain the budget deficit, carry out reforms for competitiveness and boost employment, thus prompting growth.A problem among many. The 1500 pages drawn up by the Commission passed almost unnoticed. First of all because they consist of "proposals" due to be examined by the European Council of June 28-29 and eventually be adopted in July. Secondly, the EU will focus its attention in other directions. A referendum in Ireland on fiscal compact is on the agenda of May 31; Spain is experiencing a serious banking crisis; in a few days the Greeks will return to the polls for legislative elections on which depends the Country’s permanence in the euro area, with direct consequences on the single currency. Nonetheless the Commission believes that Europe’s problems don’t cover the short run. A crisis that comes from afar, that deeply hit EU27, requires drastic interventions, structural reforms and significant changes of course.A matter of confidence. "Public finances are starting to improve, but a lot still remains to be done", Barroso said, providing an "interpretative key" to the documents presented in Brussels, that include also a set of guidelines for 12 EU countries with severe macroeconomic unbalances and for other countries subjected excessive deficit procedure, from which are exempted Germany, Bulgaria, and Hungary, which adopted the measures indicated by the EU. "It is important to foster confidence" in the market, in citizens, in international seats, "so that growth may become concrete", said the head of the Executive. "We carried out an in-depth analysis of the situation in member states and now we propose a concrete remedy for growth, competitiveness and employment. There are recommendations for all single Sates, but they fall within a shared vision and a common approach" to overcome the crisis. Three requests to Member States. "Member States have clearly taken last year’s recommendations seriously. Results are starting to show, but a long way still lies ahead". Barroso supports action for the single market, opening up services and energy markets, creating a true digital single market, investing in essential infrastructure, introducing EU products on international markets. He calls for investment for training "in order to reduce youth unemployment, that has reached tragic, unsustainable levels". The country-specific recommendations (for Germany, Paris, Sweden Italy, Malta, Lithuania, among others) include, inter alia, deficit control, funds for research and formation, fight on fiscal evasion, liberalizations, job opportunities for the youth and for women. The President of the EU Commission thus made three requests to the Council of the Heads of Government or State due to gather in less than a month. "First of all we ask for the full endorsement of these recommendations. Then there is the need for an agreement for a growth initiative", that will include project bonds, the EIB lending capacity increase, the optimisation of the Structural Funds". "Finally, it should be acknowledged that EU growth is needed to step up investment for specific projects for economic development and employment". Releasing the growth potential. According to the College of Commissioners, "a number of key messages emerge from this second set of annual country-specific recommendations". On public finances, "Member States are on the whole taking the necessary action to restore sustainability, but in several cases consolidation should be more growth-friendly". Unemployment, and in particular youth unemployment, "is a severe problem – and though there is no quick fix, immediate action should be taken to increase productivity and better match skills and training to labour market needs". "Many Member States are undertaking major structural reforms, Yet much greater action is needed across the EU to unlock our growth potential, create opportunities for business development, and unleash the job-creating potential of the services and energy sectors and the digital economy", Barroso concluded.