I’ll make an attempt to list the achievements and the omissions in the European Council conclusions from the meeting on the 17 June 2010 on the EU economy.
The Europe 2020 Strategy – it is supposed to promote a series of reforms aimed at competitiveness and employment, placing research and development at the centre of economic initiatives for the next decade. The aim is to raise to 75% the employment rate for women and men aged 20-64, raising combined public and private investment levels in research and development to 3% of GDP, reducing greenhouse gas emissions by 20%, reducing school drop-out rates to less than 10%, and aiming to lift at least 20 million people out of the risk of poverty and exclusion.
Economic governance – explicit objective for strengthening both the preventive and corrective arms of the Stability and Growth Pact; introducing the concept of dynamic debt; a scoreboard to better assess competitiveness developments and imbalances and allowing for an early detection of unsustainable or dangerous trends; publication of results of ongoing stress tests by banking supervisor; introduction of systems of levies and taxes on financial institutions to ensure fair burden-sharing and to set incentives to contain systemic risk.
Iceland – start of accession negotiations.
Estonia – adoption of the euro on 1 January 2011.
Iran – new sanctions based on UN Security Council Resolution 1929.
Omissions – the European Council failed to produce any specific measures on dealing with growth imbalances and actual, serious fiscal policy coordination. In other words the European Council delayed taking painful decisions on the future of economic governance in the European Union, while setting strategic objectives that may or may not produce effective results.