It also sets out the first steps towards creating a closer Economic and Monetary Union, which we will need to study in more detail.
Summary of Key Points
The Council Conclusions “confirms the priority to address financial market tensions, restore confidence and boost growth, …. And to preserve the EMU, smart, sustainable and inclusive growth, based on sound finances, structural reforms and investment to boost competitiveness”’
They agreed a Compact for Growth and Jobs: reconfirming action on growth-friendly fiscal consolidation, restoring normal lending to the economy, promoting growth and competiveness and tackling unemployment and the social consequences of the crisis – with actions on youth unemployment – for all young people to receive employment or education/training, which can be supported by the ESF “and implementing effective policies to combat poverty and support vulnerable groups. MS should implement Job Plans and finance temporary recruitment through ESF. Other actions focus on deepening the single market including on energy, reducing regulatory burden, strengthening innovation in R+D.
Endorsed the Country-specific Recommendations
Emphasized the role of MAFF and Structural Funds in strengthening growth and employment. – using ESF to provide loan guarantees for knowledge and skills, resources efficiency, strategic infrastructure and access to finance for SMEs , and reallocating fund for research and innovation, SMEs, youth employment and 55 million EU for more growth enhancing measures…. with MS able to reconsider reallocations within their national envelopes.
Presented the report “Towards a Genuine Economic and Monetary Union – setting out 4 building blocks – integrated financial framework, integrated budgetary framework, economic policy framework and strengthened democratic legitimacy and accountability. An interim report will be presented in October and a final report by end of 2012.