How can we ensure that structural reforms are being re-oriented from cost-cutting to a sustainable economic model? It needs to be done at EU level. It is essential for the EU to develop a real socio-economic governance based on a long-term strategy for sustainable growth. We want European policies and tools to ensure re-convergence in Europe as well as national ownership of reforms rather than one-size-fits-all measures.
This is how we can achieve real progressive reforms favouring social cohesion, efficient taxation and innovation, resource-efficiency and a sustainable industrial pattern.
This new policy mix would put social issues are on par with economic considerations.
This is particularly crucial within the Economic and Monetary Union, to ensure that competitiveness and growth are pursued through improvements in employment and productivity, rather than through internal devaluation and persistently contradictory fiscal policies.
Instruments such as the European Semester should be rebalanced towards more delivery on the Union‘s employment and social objectives, as well as a change in the political structures responsible for its implementation.
So, it is important to continue reviewing European fiscal rules and governance mechanisms so as to enable greater counter-cyclicality and ensure that public budgets can play their role as economic stabilizers.
This new balance in socio-economic governance should also be reflected in the review of the Europe 2020 Strategy.