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
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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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