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Council of the 
 
 

 European Union 
   
 
Brussels, 23 October 2015 
(OR. en) 
    13348/15 
 
 
 
 
 
 
ECOFIN 798 

 
 
UEM 383 
 
COVER NOTE 
From: 
Secretary-General of the European Commission, 
signed by Mr Jordi AYET PUIGARNAU, Director 
date of receipt: 
22 October 2015 
To: 
Mr Jeppe Tranholm-Mikkelsen, Secretary-General of the Council of the 
European Union 
No. Cion doc.: 
COM(2015) 601 final 
Subject: 
Recommendation for a COUNCIL RECOMMENDATION On the 
establishment of National Competitiveness Boards within the Euro Area 
 
 
Delegations will find attached document COM(2015) 601 final. 
 
Encl.: COM(2015) 601 final 
 
13348/15 
 
MS/sr 
 
 
DGG 1A 
 
EN 
 


   
EUROPEAN 
  COMMISSION 
 
Brussels, 21.10.2015  
COM(2015) 601 final 
 
Recommendation for a 
COUNCIL RECOMMENDATION 
On the establishment of National Competitiveness Boards within the Euro Area 
 
EN 
 
  EN 

 
 
 
Recommendation for a 
COUNCIL RECOMMENDATION 
On the establishment of National Competitiveness Boards within the Euro Area 
THE COUNCIL OF THE EUROPEAN UNION, 
Having regard to the Treaty on the Functioning of the European Union, and in particular 
Article 292, in conjunction with Articles 121(2) and 136 thereof, 
Having regard to the recommendation of the European Commission, 
Whereas: 
(1) 
While there is a need to improve the coordination and the surveillance of 
competitiveness developments within the Union, the recent crisis made visible that 
Member States whose currency is the euro ('euro area Member States')  can be 
particularly subject to the possible build-up and sudden unwinding of macroeconomic 
imbalances that may spill-over into other euro area Member States. In the absence of 
flexible nominal exchange rates, they also need adequate adjustment mechanisms to 
country-specific shocks. Competitiveness dynamics are of relevance both for the 
accumulation and correction of macroeconomic imbalances (e.g., trade and current 
account deficits, stocks of domestic and external liabilities) and an effective 
adjustment to asymmetric shocks. Competitiveness deterioration may also be 
responsible for reduced potential growth, which makes high debt less easy to be paid 
back. Coordination of policies having a bearing on competitiveness dynamics would 
help to ensure that competitiveness developments are compatible with the objective of 
a smooth functioning of the economic and monetary union (EMU). While this 
Recommendation is addressed to the euro area Member States, the other Member 
States are also encouraged to set up similar bodies.  
(2) 
The European Semester, in particular the macroeconomic imbalance procedure as 
established in Regulation (EU) No 1176/2011 and Regulation (EU) No 1174/2011, 
provides a framework for integrated economic policy coordination and surveillance. In 
view of the need to foster progress with structural reforms in the competitiveness 
domain, these existing mechanisms need to be backed by stronger national ownership 
of reform agendas. To this purpose, raising independent policy expertise at national 
level and reinforcing the policy dialogue between the Union and the euro area Member 
States appear warranted. 
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(3) 
The setting up of national competitiveness boards in charge of tracking performance 
and policies in the field of competitiveness should contribute to the enhancement of 
ownership of the necessary policies and reforms at national levels and to improving 
the knowledge basis for Union economic policy coordination in the field of 
competitiveness. These boards should assess competitiveness developments and 
policies, but also provide policy advice for reform implementation, taking into account 
national specificities and established practices. 
(4) 
The scope of intervention of competitiveness boards should span a comprehensive 
notion of competitiveness. Wage dynamics as well as non-wage factors and 
productivity drivers and dynamic considerations related to investment, innovation and 
the attractiveness of the economy to businesses should fall under the remit of these 
boards. 
(5) 
Competitiveness boards should be entrusted with the capacity to ensure high-quality 
economic analysis as the basis for their advisory role. 
(6) 
Competitiveness boards should be independent from the ministries or public 
authorities that deal with competitiveness-related issues. The competitiveness boards 
should also be unbiased, in the sense that they should not convey only or mainly views 
of specific groups of stakeholders. Such independence and unbiasedness requirements 
are aimed at ensuring that the advisory role of competitiveness boards adequately 
reflects expert judgement formulated in the general interest. 
(7) 
The characteristics of the competitiveness boards should be in compliance with Article 
152 of the Treaty and should take into account the national practice and institutions for 
wage formation. In accordance with Article 28 of the Charter of Fundamental Rights 
of the European Union, their functioning should not affect the right of workers and 
employers, or their respective organisations, to negotiate and conclude collective 
agreements at the appropriate levels or to take collective action in accordance with 
Union law and national laws and practices. 
(8) 
The Commission should coordinate the activities of the competitiveness boards with a 
view to fostering the achievement of euro-area-wide objectives and taking into 
account inputs from the system of competitiveness boards in Union economic policy 
coordination. 
(9) 
Competitiveness boards should compile and publish their analysis and advice in an 
annual report. In order to ensure that euro-area and Union objectives are taken into 
account in the work of the boards consultations between the Commission and the 
boards should take place for the production of these reports and during fact-finding 
missions to Member States. The reports will inform the Commission analysis 
undertaken in the context of the European Semester and the Macroeconomic 
Imbalances Procedure. 
(10)  In order to ease coordination at supra-national level, there should be one identifiable 
competitiveness board in each Member State. However, to carry out their activities 
properly, competitiveness boards could in turn rely on different separate existing 
bodies, provided that they meet the common principles exposed above. 
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(11)  Monitoring and enforcement of the Country-Specific Recommendations (CSRs) 
should remain at Union level, within the European Semester and the application of the 
Macroeconomic Imbalance Procedure as established in Regulation (EU) No 
1176/2011. 
 
 
 
HAS ADOPTED THIS RECOMMENDATION: 
 
I. Objectives and scope 
1. 
The objective of this Recommendation is the setting up of national competitiveness 
boards to monitor performance and policies in the field of competitiveness, thereby 
contributing to foster sustained economic convergence, and to increase ownership of 
the necessary reforms at the national level. 
2. 
This Recommendation is addressed to the euro area Member States. The other 
Member States are also encouraged to set up similar bodies. 
 
II. Establishing competitiveness boards 
3. 
Each Member State should have in place a competitiveness board tasked with: 
(a) 
Monitoring competitiveness developments in the Member State concerned, 
taking into account factors that can affect prices and quality content of goods 
and services relative to global competitors in the short term (including labour 
costs) as well as longer-term drivers such as productivity and innovation 
capacity, which are relevant not only for the relative performance of the 
economy but also for its growth potential and the capacity to attract 
investment, businesses and human capital; 
(b) 
Informing the wage setting processes at national level by providing relevant 
information; 
(c) 
Monitoring policies linked to competitiveness in the Member State concerned, 
including contributing to ex-post evaluation of policies; and 
(d) 
Assessing policy challenges and formulating policy advise in the field of 
competitiveness. The advice of competitiveness boards should take into 
account the broader euro-area and Union dimension. The boards should, inter-
alia, provide advice on  the implementation of the Country-Specific 
Recommendations addressed to the concerned Member State by the Council in 
the context of the European Semester; 
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4. 
Each Member State should identify one competitiveness board, which could in turn 
rely on different existing bodies. 
5. 
Competitiveness boards should carry out their activities on a continuous basis. They 
should publish their analysis, and advice in an annual report. They should be engaged 
in contacts with the Commission and competitiveness boards of other Member States 
with the aim of coordinating views. 
 
 
 
III. Characteristics of the competitiveness boards 
6. 
Competitiveness boards should be structurally independent or endowed with 
functional autonomy vis-à-vis any public authority dealing with competitiveness-
related issues of the Member State (in particular ministries, administrations, public 
institutes, public agencies). They should be underpinned by national legal provisions 
ensuring a high degree of functional autonomy and accountability, including: 
(a)  a statutory regime grounded in national laws, regulations or binding 
administrative provisions; 
(b)  not taking instructions from any public authorities dealing with 
competitiveness-related issues or from any other public or private body; 
(c)   the capacity to communicate publicly in a timely manner; 
(d)  procedures for nominating members on the basis of their experience and 
competence ; 
(e)  adequate resources and appropriate access to information to carry out their 
mandate. 
7. 
Competitiveness boards should consult relevant stakeholders (e.g. national actors or 
groups of actors, including social partners, who participate in the economic and 
social dialogue of the Member States on a regular basis) but should not convey only 
or mainly the opinions and the interests of a particular group of stakeholders. 
8. 
Competitiveness boards should have the ability to carry out economic and statistical 
analyses with a high degree of quality, including as recognised by the academic 
community. 
 
IV. Articulation with the European Semester 
9. 
The Commission should facilitate coordination between national competitiveness 
boards and exchange views with them, in particular to ensure the consideration of 
euro-area and EU objectives in the work of the boards. Contacts should be envisaged 
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ahead of the production of their annual reports and during fact-finding missions to 
Member States. 
10. 
The independent expertise provided by those boards, including through the annual 
reports, will be used to inform the Member States and Commission analysis in the 
European Semester and the macroeconomic imbalance procedure. 
 
V. Accountability and transparency 
11. 
As a rule, the analyses produced by those boards should be made public. 
 
VI. Final provisions 
12. 
The Member States are invited to implement the principles set out in this 
Recommendation by [date of adoption of this recommendation + 6 months]. 
13. 
By [date of adoption of this recommendation + 12 months], the Commission is 
invited to prepare a progress report, on the basis of relevant information from 
Member States, on the implementation and the suitability of this Recommendation, 
including whether the adoption of binding provisions appears necessary. 
 
Done at Brussels, 
 
For the Council 
 
The President 
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