PROGRESS REPORT ON THE EUROPE 2020 STRATEGY
EUROPEAN COMMISSION
Brussels, 23.11.2011
COM(2011) 815 final
VOL. 2/5 - ANNEX I
ANNEX
PROGRESS REPORT ON THE EUROPE 2020 STRATEGY to the
COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL
COMMITTEE AND THE COMMITTEE OF REGIONS
Annual Growth Survey 2012
1.
INTRODUCTION
In 2010, the European Council agreed on a comprehensive response to the challenges that Europe is currently facing: the Europe 2020 strategy. In the current climate, this strategy has become more relevant than ever. GDP in the EU grew in the first quarter of
2011, but has slowed down substantially since then. Economic growth is now expected to come to a virtual standstill towards the end of the year.1 In the euro area, this is exacerbated by the continuing sovereign debt crisis and remaining fragilities in the banking sector. In this situation, households and businesses lack confidence and therefore hold back on consumption and investments. In addition, with strained public finances, there is very limited room for further expansionary fiscal policy to boost growth.
This situation weighs heavily on future growth prospects, having wide-spread negative effects on business operations, on the labour market – with the young and low-skilled being particularly hit, and on government finances - both on the revenue and expenditure side. At the same time, the global environment is becoming ever more competitive, with emerging economies climbing up the technology ladder.
In the face of its deepest economic crisis since its inception, the EU must redouble its efforts to accelerate growth, productivity and job creation. There is no longer a distinction to be made between the short and the long-term as longer-term economic prospects have an immediate short-term impact on countries' borrowing costs. Longerterm reforms have to be pursued in parallel to shorter-term measures.
The Europe 2020 strategy rightly puts an
Brussels, 23.11.2011
COM(2011) 815 final
VOL. 2/5 - ANNEX I
ANNEX
PROGRESS REPORT ON THE EUROPE 2020 STRATEGY to the
COMMUNICATION FROM THE COMMISSION TO THE EUROPEAN
PARLIAMENT, THE COUNCIL, THE EUROPEAN ECONOMIC AND SOCIAL
COMMITTEE AND THE COMMITTEE OF REGIONS
Annual Growth Survey 2012
1.
INTRODUCTION
In 2010, the European Council agreed on a comprehensive response to the challenges that Europe is currently facing: the Europe 2020 strategy. In the current climate, this strategy has become more relevant than ever. GDP in the EU grew in the first quarter of
2011, but has slowed down substantially since then. Economic growth is now expected to come to a virtual standstill towards the end of the year.1 In the euro area, this is exacerbated by the continuing sovereign debt crisis and remaining fragilities in the banking sector. In this situation, households and businesses lack confidence and therefore hold back on consumption and investments. In addition, with strained public finances, there is very limited room for further expansionary fiscal policy to boost growth.
This situation weighs heavily on future growth prospects, having wide-spread negative effects on business operations, on the labour market – with the young and low-skilled being particularly hit, and on government finances - both on the revenue and expenditure side. At the same time, the global environment is becoming ever more competitive, with emerging economies climbing up the technology ladder.
In the face of its deepest economic crisis since its inception, the EU must redouble its efforts to accelerate growth, productivity and job creation. There is no longer a distinction to be made between the short and the long-term as longer-term economic prospects have an immediate short-term impact on countries' borrowing costs. Longerterm reforms have to be pursued in parallel to shorter-term measures.
The Europe 2020 strategy rightly puts an