Rebooting the EU's Economy Valdis Dombrovskis European Commission Vice President for Euro and Social Dialogue Riga, 2016

Headwinds Moderate recovery (2%) in the EU is supported by 1. Low oil prices 2. Low energy prices 3. Low interest rates 4. Euro depreciation Tailwinds 1. Slow emerging market growth 2. Weak global trade 3. Heightened uncertainty a.Geopolitical situation b.Security concerns

Challenges Competitiveness constraints - structural rigidities in labour and product markets High unemployment and social inequality Weak domestic demand Low investment The Single Market is not yet perfect

Economic priorities Investment Fiscal Responsibility Structural Reforms

Structural Reforms at the EU level EU Internal Market Goods and Services Digital Single Market Energy Union Capital Markets Union Better regulation for jobs, growth and investment

Structural Reforms at National Level Improving the labour market, creating jobs Reducing segmentation in the labour market Implementing flexicurity Shifting tax burden from labour to less detrimental areas (consumption, property, capital) Sustainable pension systems in an ageing society Developing modern social security systems

Flexibility in the goods and services market Opening up closed professions Removing barriers for investment Enhancing research and development - quantity and quality Improving governance Structural Reforms at National Level

Stage 1 "Deepening by doing" to Economic Union – convergence, jobs and growth Competitiveness Boards Macroeconomic Imbalances Procedure European Semester Financial (Monetary) Union Bank Union Capital Markets Union Fiscal Union – fiscal sustainability and stability European Fiscal Board Political Union Democratic legitimacy and accountability Stage 2 "Completing EMU" to Convergence and Benchmarking Macroeconomic Stabilization function Euro area Treasury Treaty Change

THANK YOU! Valdis Dombrovskis European Commission Vice President for Euro and Social Dialogue Riga, 2016