Recommendation 2002/549 - Broad guidelines of the economic policies of the Member States and the EC - Main contents

official title

 

Legal instrument	Recommendation
Number legal act	Recommendation 2002/549
Original proposal	COM(2002)191
CELEX number i	32002H0549

Avis juridique important

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Council Recommendation of 21 June 2002 on the broad guidelines of the economic policies of the Member States and the Community

Official Journal L 182 , 11/07/2002 P. 0001 - 0050

Council Recommendation

of 21 June 2002

on the broad guidelines of the economic policies of the Member States and the Community

(2002/549/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular to Article 99(2) thereof,

Having regard to the recommendation from the Commission,

Having regard to the discussion by the European Council on 21 June 2002 in Seville,

Whereas a Resolution on the recommendation from the Commission was adopted by the European Parliament,

HEREBY RECOMMENDS:

TABLE OF CONTENTS

>TABLE>

• I. 

  GENERAL ECONOMIC POLICY GUIDELINES

• 1. 

  INTRODUCTION

The EU has a well-defined economic policy strategy that is oriented towards the pursuit of growth- and stability-oriented macroeconomic policies, capable of adequately responding to changing economic circumstances in the short run, and towards improving the long-term capacity for sustainable, job-creating and non-inflationary growth. The 2002 Broad Economic Policy Guidelines (BEPGs) adapt and update this strategy in the light of the political orientations of the Barcelona European Council (15 and 16 March 2002), also taking into account the development of the sustainable development strategy. They have been drawn up against the background of the examination of the implementation of the 2001 BEPGs and the assessment of the economic situation and outlook as presented in the Commission's Spring 2002 Economic Forecasts.

Section 2 sketches the economic background to these guidelines and identifies the key economic policy challenges. Section 3 then describes the general policy recommendations that are applicable to all Member States and the Community. Within the overall strategy, policy priorities differ somewhat across Member States due to differences in economic performance, prospects, structures and institutions. Taking due account of them, Part II presents the country-specific economic policy guidelines.

In line with continued efforts to draw lessons from experience for strengthened coordination, and in line with the Barcelona European Council's urge to streamline relevant processes and to focus on action for implementation rather than on the annual elaboration of guidelines, the format and frequency of the BEPGs may change as from 2003. Against this background, the 2002 BEPGs opt for continuity with the previous year's edition.

• 2. 

  MAIN PRIORITIES AND POLICY REQUIREMENTS

2.1. Economic recovery is taking off

The EU economy was in 2001 marked by a sharp and unexpected slowdown in economic activity. Macroeconomic policies were put to the test and employment growth decelerated.

However, there are now increasing signs that the economy has stabilised and is already picking up. The response of economic policy, sound fundamentals, an improvement in confidence, and in external demand, allied with the unwinding of the impact of a series of adverse economic shocks, have provided the platform for this recovery. The smooth introduction of the euro in 1999 and the notes and coins in 2002 brings a welcome note of stability and confidence. Notwithstanding persisting downside risks and uncertainty, expectations are that the EU economy would gather strength to reach a growth rate close to or above potential in the second half of 2002 and into 2003, i.e. at the time when the recommendations in these guidelines are to be implemented.

As labour market developments reflect the economic situation with a lag, employment and unemployment trends are unlikely to improve visibly before 2003. It is expected that inflationary pressures remain contained over the medium term and that, in the course of 2002, HICP inflation will stabilise at levels...

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