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Europe 2020: the new economic strategy of the European Union

On March 26, 2010, under the English presidency of the European Council reached agreement on key elements of Europe 2020, the new strategy proposed by the European Commission with the objective to accompany the release of financial crisis and the challenges of the next decade such as globalization, climate change and population aging.

Communication Europe 2020 - A strategy for smart growth, sustainable and inclusive, filed on March 3 last year by the European Commission, represents the evolution of the Lisbon Strategy, launched in 2000, has failed in implementing its main goals . The three priorities that have been identified for the next decade are:

• smart growth: building an economy based on knowledge and innovation;

• sustainable growth: promoting a more efficient resource, greener and more competitive

• inclusive growth: promoting an economy with a high rate of employment conducive to social and territorial cohesion.

EU 2020, which turns on its hinges innovation, growth and employment, has five priority objectives to be pursued over the next ten years to reach an employment rate of at least 75% of the population including between 20 and 64 years, make up from 1, 9 to 3% of GDP investment in research and development, sustainable growth through a restructuring of the economy e lo sviluppo della “green economy”, raggiungendo i traguardi 20/20/20 in materia di clima ed energia posti nel 2008; fare scendere sotto il 10% la quota di giovani che abbandonano la scuola e fare salire al 40% almeno la quota dei laureati; strappare 20 milioni di persone al rischio povertà, anche mediante un sostegno mirato dei fondi strutturali, in particolare del FSE, e agendo contemporaneamente sia sul fronte formazione e occupazione sia su quello della protezione sociale, nonché attuando misure specifiche dirette alle categorie particolarmente a rischio quali disabili e minoranze.

Seguendo le raccomandazioni della Commissione gli obiettivi generali saranno tradotti e suddivisi in obiettivi nazionali differentiated. The Commission will contribute to the debate on national targets, leaving the final word to the individual member states, which will prepare the so-called National Reform Programmes "which will set out the detailed actions that governments will undertake to implement the new strategy. It is precisely in the consideration of the differences between countries lies the big difference with the strategy of the Lisbon agenda. Each member state must, in fact, submit each year its program which targets it intends to achieve compliance with the benchmarks. Following the EU will consider the efforts made by individual countries are sufficient or not, a mechanism already adopted in the economic field with regard to public finances, where states must report annually to the stability program.

If the States 'virtuous' will be rewarded with incentives and benefits in accessing European funds, those in default will be the subject of recommendations by the EU, which will be followed by 'warning policy', that is true and their alarms by the Commission. However, there are no penalties for non-compliant states.

The latter in particular has drawn criticism from those who say that once again has been proposed a model of governing the economy weakened and mostly reduced to the management mechanisms of the traditional dialectic between the EU institutions and member governments, however, often proven to be ineffective. In this sense, the European Union, even following the adoption of the Lisbon Treaty confirms that the practice of unanimity in the strategic sectors of defense and economic policy, risk losing the propellant charge that has characterized the last decades in favor a reaffirmation of the power of member states.

Waiting for the next summit in June, which will be presented national goals and defined the details of the overall strategy, we can see how the goals identified in the Commission's proposed strategy are clear and easily measurable, however, they do not appear easy to achieve. The European Union is still crossed by many divisions, evidenziatesi especially in the last period with regard to the crisis in Greece, and many member states still seem to have the tools and resources needed to achieve these objectives.

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The Mechanism of the excessive deficit, proposals for overcoming conflict and
tax policy, other than monetary, it is the responsibility of the States of 'euro area but is subject to specific guidelines or rather the restrictions laid at Community level, these tax rules are set in both Trattato di Maastricht sia nel Patto di Stabilità e Crescita e di Crescita e nelle sue successive modifiche.

La disciplina fiscale nel Trattato di Maastricht
Il Trattato di Maastricht in tema fiscale prevede secondo l’(art 104C) che gli stati membri debbano evitare disavanzi pubblici eccessivi, la Commissione sorveglia l'evoluzione della situazione di bilancio e dell'entità del debito pubblico negli Stati membri, al fine di individuare errori rilevanti.
In particolare esamina la conformità alla disciplina di bilancio sulla base di due criteri
a) Nel caso in cui il rapporto deficit/PIL superi un valore di riferimento previsto del 3%, salvo che il ratio has declined substantially and continuously and reached a level that approaches the reference value, and the excess over the reference value is only exceptional and temporary and the ratio remains close to the reference value.
b) In the event that the debt ratio exceeds a reference value of 60%, unless the ratio is sufficiently diminishing and approaching the reference value at a satisfactory pace.
The Maastricht Treaty also provides guidance on the procedure to be followed if a member state fails to comply with one or both of the fiscal criteria in this regard will be a report by the Commission and a Council Recommendation to the Member State, in which the restrictive measures will be required in case of persistent overshoot percentage. Application will then be given more or less counter-sanctions, such additional information, reduction of European loans, fines and interest-bearing deposit.

the Stability and Growth Pact (SGP)
The Stability and Growth Pact by the EU comes from the recognition of the crucial importance of ensuring the continuation of budgetary discipline initially prescribed for the third stage of Economic and Monetary Union began on 1 January 1999.
The objective is to ensure that, once introduced the single currency, is maintained the discipline followed by the Member States relating to the budget. The PSC in this context the reference to the Treaty strengthens and clarifies the procedure to be adopted in the presence of excessive public deficits.
Formally, the Stability and Growth Pact consists of a number of Community instruments and the Council of Europe among which the most important is to be linked to repressive measures against the Member Regulation (EC) No 1467/97 on the implementation of the excessive deficit procedure where a Member State exceeds the reference value, namely a deficit exceeding 3% of gross domestic product (GDP) (part repressive)
crucial commitment requested by the PSC is the pursuit the medium-term objective of achieving a balance of the budget close to balance or in surplus, which will allow Member States to deal with normal cyclical fluctuations while keeping the deficit within the reference value of 3% of GDP, so long as it is a autodisciplinante-mechanism with the objective of sound fiscal policies and adequate margins of anti-cyclical

Implementation of the Stability and Growth
excessive deficits procedure is initiated where a Member State exceeds the public deficit criterion target of 3% of gross domestic product (GDP). If the Council finds occur, it sends the recommendations Member State concerned to take the necessary steps to remedy that situation. If the Member State fails to comply with the recommendations or does not provide for measures to remedy the situation, the Council may impose sanctions against that country, initially in the form of interest-free deposit with the Community, the deposit in question is in converted into a fine principle, if within two years from the excessive deficit is corrected.
The identification and request for correction, where an excessive deficit is identified in the public accounts of a state is realized at the same time when the Council makes recommendations to the Member State concerned, within un termine massimo di quattro mesi lo Stato membro deve mettere in pratica la correzione del deficit eccessivo che dovrebbe essere completata nell'anno successivo alla constatazione del disavanzo eccessivo, ammesso che non sopraggiungano circostanze eccezionali.
Ci sono poi una serie di sanzioni cui lo stato deve far fronte nel caso in cui non adempia alle raccomandazione che sono state intimate. La costituzione di un deposito infruttifero (in % del PIL e in % della differenza tra deficit/PIL e obiettivo 3%) che a seconda della riduzione del deficit viene abrogato o convertito in ammenda.