EUROPE 2020 The European Semester 2012

The European Semester timeline Council of Ministers European Commission Parliament Council summit January March April February May June July ( Peer review at national level Debate & orientations Adoption of country-specific recommendations Member States Conclusions Adoption of Stability and Convergence Programmes, and National Reform Programmes Dialogue Orientations: AGS & Alert Mechanism Report Proposals for country-specific recommendations including preventive arms of SGP and EIP Debate Endorsement of country-specific recommendations Dialogue European Council conclusions Spring Dialogue results of surveillance Implementation in national budgets Reviews 2

Annual Growth Survey: five priorities for 2012 The Spring European Council endorsed the AGS priorities: Pursuing growth-friendly fiscal consolidation Restoring normal lending to the economy Promoting growth and competitiveness Tackling unemployment and the social consequences of the crisis Modernising public administration

A reinforced economic governance Six-pack (entered into force on 13 December 2011) - Timely, graduated and effective mechanisms for compliance, including financial sanctions (for euro area Member States) - Preventing and correcting macro-economic imbalances: first issue of the Alert Mechanism Report Two-pack (ongoing discussions) - Monitoring and assessing draft budgetary plans - Enhanced surveillance for euro area Member States facing severe difficulties with regard to their financial stability Treaty on Stability, Coordination and Governance (signed on 2 March 2012 by 25 Member States, intergovernmental agreement) Enters into force following ratification by at least 12 euro area Member States

A plan for growth in Europe Commission proposals for youth unemployment (Youth Action Teams in 8 Member States) and SMEs access to finance Implementation of the Single Market Act, particularly the Service Directive Complete the Digital Single Market by 2015 Internal market in energy by 2014 Forthcoming "employment package” Forthcoming Communication on growth and jobs for Greece Project Bonds by June 2012

Meeting our targets for 2020 EMPLOYMENT 75% of the population aged 20-64 should be employed (68.6% in 2010) INNOVATION 3% of the EU's GDP should be invested in R&D (2.0% in 2010) CLIMATE / ENERGY A reduction of CO2 emissions by 20% Share of renewable energies up to 20% (11.6% in 2009) An increase in energy efficiency by 20% EDUCATION The share of early school leavers should be under 10% (14.1% in 2010) At least 40% of the younger generation should have a degree or diploma (33.6% in 2010) POVERTY 20 million fewer people should be at risk of poverty (close to 2 million more people in 2010 compared to 2009) 6

European Council conclusions, March 2012: “Europe 2020 is Europe's strategy for jobs and growth and its comprehensive response to the challenges it is facing. In particular, the five targets set out for 2020 remain fully relevant and will continue to guide the action of Member States and the Union to promote employment; improve the conditions for innovation, research and development; meet our climate change and energy objectives; improve education levels and promote social inclusion in particular through the reduction of poverty.” « However, efforts undertaken to date remain insufficient to meet most of these targets. It is therefore urgent to concentrate on the implementation of reforms, with a particular attention to measures which have a short-term effect on jobs and growth. »

Youth unemployment is very high in some countries Youth unemployment rates (November 2011) % of labour force < 10 10 - 20 20 - 30 30 - 40 > 40 Source: European Commission

A “Youth on the move” Pact (1) EACH MEMBER STATE TO: Develop youth jobs plans by mid-April as part of National Reform Programmes Guarantee job, education or training for each young person within 4 months of leaving school Agree with social partners to increase number of apprenticeships and traineeships Re-direct EU Structural Funds to give priority to youth unemployment Use existing EU support schemes to facilitate youth mobility (with EU and/or top-up national funding) Presentation of J.M. Barroso to the informal European Council, 30 January 2012 9

A “Youth on the move” Pact (2) WHERE YOUTH UNEMPLOYMENT IS SIGNIFICANTLY ABOVE EU AVERAGE: Action teams with Commission, Member States & social partners to develop youth jobs plans Use of unallocated EU Structural Funds to fund training and work experience Presentation of J.M. Barroso to the informal European Council, 30 January 2012 10

… and boosting the competitiveness of our SMEs Access to finance Access to markets EU schemes for SMEs: Direct funding and loans Guarantees Working capital EIB EU market for venture capital Innovative financing instruments (project bonds) At home: Enforce Single Market legislation Fast-track Single Market Act Use of public procurement Abroad: Support for internationalisation New trade agreements Cutting red-tape E-government and e-commerce 3 days to start a business Reduction of late payments Exemptions for micro-firms Presentation of J.M. Barroso to the informal European Council, 30 January 2012 11

Venture capital is in short supply in Europe Venture capital investments by investment stage (% GDP) Early stage investments Expansion and replacement investments EU firms have traditionally much less access to venture capital than their US counterparts. The crisis has further limited access. Source: European Private Equity and Venture Capital Association (EVCA), European Commission

Time to start a business (calendar days) Reducing red tape (1) Time to start a business (calendar days) The Small Business Act for Europe has set the target of 3 days to start a business by 2012 It currently takes 6.5 days to start a business in Europe, at a cost of € 400. The agreed EU target is 3 days by 2012, for less than € 100. Source: European Commission

European Semester: working together on next steps March: EU-level guidance from Spring summit (based on Annual Growth Survey) Now: MS to prepare youth jobs plan in each National Reform Programme Commission / Member State action on youth unemployment in worst affected Member States (accelerating / redirecting structural funds for youth and SME support) 13 April: Member State submit National Reform Programmes and Stability/Convergence programmes May: Commission issues proposal for country-specific recommendations 28-29 June: European Council decisions on country-specific recommendations

What is your role in the European Semester? President Barroso: « chaque fois qu'on a un Conseil Européen, nous avons tous les gouvernements qui discutent d'Europe 2020, et après, pour vous parler très franchement, je ne vois pas au niveau national le même type de débat. Il n'y pas une véritable appropriation du débat, à tous les niveaux, par toutes les composantes de la société civile. » “I believe it is critical on these efforts, namely about Europe 2020 Strategy, the ownership at the national level of these reforms not only by the national parliaments but also by social partners and the regions.” Conclusions, European Council, March 2012: In this process, in which social partners and regions have an important role to play, full use will be made of the tools offered by the European Union's new economic governance.

What is your role in the European Semester? Thank you for the integrated report including the contributions of national ESCs. Welcome an input on the proposals for Country Specific Recommendations to be issued by the Commission on 30 May, in view of the June European Council. Welcome your views on the state of play of implementation of the CSRs in your Member State, need for new CSR, reformulation.. The Commission will propose to reinforce the involvement of social partners in coordination of economic and employment policies at EU level. Communicate on Europe 2020 in your Member State!