Recommendation 2003/555 - Broad guidelines of the economic policies of the Member States and the EC (for the 2003-2005 period) - Main contents

official title

 

Legal instrument	Recommendation
Number legal act	Recommendation 2003/555
Original proposal	COM(2003)170
CELEX number i	32003H0555

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Council Recommendation of 26 June 2003 on the broad guidelines of the economic policies of the Member States and the Community (for the 2003-2005 period)

Official Journal L 195 , 01/08/2003 P. 0001 - 0054

Council Recommendation

of 26 June 2003

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

(for the 2003-2005 period)

(2003/555/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 19-20 June 2003,

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. 

  MEETING THE LISBON STRATEGIC GOAL - THE ECONOMIC POLICY CONTRIBUTION

The EU is at a crucial juncture in its history. Following the successful introduction of euro notes and coins, the EU is now on the eve of an historic enlargement which will increase its size to 25 Member States and create an economic entity with a population of more than 450 million. At the same time, the world economy has been facing several uncertainties casting a shadow on economic prospects, certainly in the short-term but possibly also in the medium-term.

At Lisbon, the EU set itself a new strategic goal for the current decade: "to become the most competitive and dynamic knowledge-based economy in the world capable of sustainable economic growth with more and better jobs and greater social cohesion". The current global economic environment reinforces the need to a speedy implementation of the Lisbon strategy. Successful implementation of this strategy depends upon simultaneous and coherent policy action being taken in a wide range of areas in the economic, social and environmental domains. These broad economic policy guidelines, while taking account of short-term requirements, concentrate on the contribution that economic policies can make over the next three years to the Lisbon agenda. In line with the arrangements on streamlining and the conclusions of the Brussels Spring European Council, the BEPGs focus on the key economic policy issues and priorities for the next three years. They are at the heart of the policy coordination endeavour that underpins economic governance in the EU and its Member States. The guidelines testify to the EU's recognition of the imperative for higher and sustainable growth rates and its resolve to take the necessary action to achieve this result. Sound macroeconomic conditions and policies are a prerequisite for a sustainable increase in economic prosperity. A stronger entrepreneurial spirit and improved investment in knowledge and innovation, and reform of employment systems are key to increasing productivity and opening up new opportunities for growth. Better functioning and more competitive labour, product and capital markets are indispensable to achieve a more flexible economy and increase potential growth. Due regard must also be paid to economic, social, and environmental sustainability concerns to ensure that efforts will produce the expected results in the longer term.

In addition to these broad economic policy guidelines (BEPGs), Member States should fully implement the employment guidelines and the associated recommendations, which are required by the Treaty (Article 128 (2)) to be consistent with the BEPGs.

The general economic policy guidelines in Part I are applicable to all Member States and to the Community. Part I includes a section on the euro area, addressing its specific challenges. Within the overall strategy, key economic policy challenges may differ across Member States due to differences in economic performance, prospects, structures and institutions. Taking due account of...

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