This is an HTML version of an attachment to the Freedom of Information request 'Protokoll Hochrangige Gruppe 13.10.2015'.


 
 
 
 

Council of the 
 
 

 European Union 
   
 
Brussels, 13 June 2016 
(OR. en) 
    10083/16 
 
 
 
 
 
 
ECOFIN 590 

 
 
UEM 248 
 
NOTE 
From: 
General Secretariat of the Council 
To: 
Permanent Representatives Committee/Council 
No. prev. doc.: 
13348/15 ECOFIN 798 UEM 383 
No. Cion doc.: 
COM(2015) 601 final 
Subject: 
Recommendation for a COUNCIL RECOMMENDATION on the 
establishment of National Productivity Boards 
- Transmission to the European Council 
 
 
Delegations will find here attached the post EFC version of the draft Council recommendation on 
the establishment of National Productivity Boards. 
The ECOFIN Council of 17 June 2016 is invited to transmit the recommendation to the European 
Council in accordance with Article 121(2) of the Treaty on the Functioning of the European Union 
(TFEU). The Council will proceed to the formal adoption of the text in the annex after the European 
Council has discussed its conclusions on it, in accordance with Article 121(2) TFEU. 
 
 
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COUNCIL RECOMMENDATION 
On the establishment of National Productivity Boards 
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)  Potential growth in the Euro Area and in the European Union as a whole has slowed down 
considerably since 2000. The downward trend in potential output growth is notably due to a 
steady decline in the contribution of total factor productivity. Since 2008, economic growth 
has been further weakened by a fall in investment. Looking forward, economic growth will 
ultimately depend on increasing productivity. Raising productivity is a multi-faceted 
challenge which requires a set of well-balanced policies aimed notably at supporting 
innovation, increasing skills, reducing rigidities in the labour and product markets, as well as 
allowing a better allocation of resources. While there is a need to improve the productivity 
and competitiveness performance 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 and other Member States. In the absence 
of flexible nominal exchange rates, they need adequate adjustment mechanisms to country-
specific shocks. Productivity and  competitiveness dynamics are of relevance both for the 
 
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accumulation and correction of macroeconomic imbalances (e.g., trade and current account 
deficits, stocks of domestic and external liabilities) and for the effective adjustment to 
asymmetric shocks. Research and analysis of policies having a bearing on productivity and 
competitiveness dynamics should provide a basis for developments compatible with the 
objective of a smooth functioning of the economic and monetary union.  
(2) 
While this recommendation is addressed to the euro area Member States, other Member 
States are  encouraged to identify or set up similar bodies. Other Member States declaring 
their intention to follow up on this recommendation should be allowed to participate on 
equal terms in all aspects of the cooperation related to the productivity boards.   
(3) 
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 
fostering progress with structural reforms, these existing mechanisms should benefit from 
strong national ownership. For this purpose, ensuring independent analysis at the national 
level and reinforcing the policy dialogue in Member States appears warranted.  
(4) 
The setting up of national productivity boards that track developments and inform the 
national debate in the field of productivity and 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. These boards 
should analyse productivity and competitiveness developments including relative to global 
competitors, taking into account national specificities and established practices.   
 
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(5)   The scope of diagnosis and analysis by productivity boards spans a comprehensive notion of 
productivity and competitiveness.  They should take into account the long-term drivers and 
enablers of productivity and competitiveness, including innovation, and the capacity to 
attract investment, businesses and human capital and address cost and non-cost factors that 
can affect prices and quality content of goods and services, including relative to global 
competitors in the short term. 
(6) 
Moreover, independent high-quality economic analysis of policy challenges increases 
transparency in policy debates. Assessing policy challenges could raise awareness of all 
stakeholders. This can have a positive impact on public support and ownership for necessary 
reforms. Also, if and to the extent foreseen in their national mandate, the board could assess 
the effects of policy options by making trade-offs of policy explicit.   
 (7)  Productivity boards should be endowed with functional autonomy vis-à-vis any public 
authority in charge of the design and implementation of policies in the field of productivity 
and competitiveness in the Member State or at European level  In particular, they should be 
able to produce independent analysis within the scope of their area of work. The 
composition of productivity boards, while subject to national discretion, should 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 productivity  boards are empowered to produce expert analyses formulated in the general 
interest. 
(8) 
The characteristics of the productivity boards should fully observe Article 152 of the Treaty 
and shall respect 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. 
 
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(9) 
Productivity  boards should be engaged in contacts with productivity  boards of other 
participating Member States with the aim of exchanging views and best practices, also 
taking into account the broader Euro area and Union dimension. The Commission could 
facilitate the exchange of views between the productivity boards of all participating Member 
States. There should also be a regular discussion between the productivity  boards and the 
Economic Policy Committee on issues within the latter's area of competence, involving 
relevant experts in non-participating Member States. 
(10)  Productivity boards should carry out their activities on a countinuous basis. They should 
make their analyses publicly available and publish an annual report, which could be 
integrated into an already existing report. The independent expertise provided by those 
boards, including through the annual reports, could be used by Member States and the 
Commission in the context of the European Semester and the Macroeconomic Imbalance 
Procedure.  
(11)  In order to ease exchange of views at supra-national level, there should be one identifiable 
productivity  board in each Member State. It is important to build on existing structures in 
order to preserve what already works and to minimize administrative costs. Where 
appropriate the productivity  board could be based on an already established and respected 
national structure including as regards the involvement and consultation of stakeholders. 
However, to carry out their activities properly, productivity  boards could in turn rely on 
different separate and existing bodies, provided that their analysis is of the same high 
quality.  
(12)  This recommendation does not alter the assigned responsibilities for the European Semester, 
including designing and monitoring of the Country Specific Recommendations, or the 
application of the Macroeconomic Imbalance Procedure as established in Regulation (EU) 
No 1176/2011. 
 
 
 
 
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HAS ADOPTED THIS RECOMMENDATION: 
 
I. Objectives and scope 
1. 
The objective of this Recommendation is the setting up or identification of national 
productivity  boards to analyse developments and policies in the field of productivity and 
competitiveness, thereby contributing to foster ownership and implementation of the 
necessary reforms at the national level, and hence foster sustained economic growth and 
convergence. 
2. 
This Recommendation is addressed to the euro area Member States. The other Member 
States are also encouraged to set up or identify similar bodies. 
3. 
The application of this recommendation should fully observe Article 152 TFEU and shall 
respect national practices and institutions for wage formation. This recommendation takes 
into account Article 28 of the Charter of Fundamental Rights of the European Union, and 
accordingly does not affect the right to negotiate, conclude or enforce collective agreements 
or to take collective action in accordance with national law and practices. 
 
 
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II. The productivity  boards 
4. 
Each Member State should have in place a productivity  board tasked with: 
(a) 
Diagnosis and analysis of productivity and competitiveness developments in the Member 
State concerned. The analysis should take into account euro area and union aspects and 
address the long-term drivers and enablers of productivty and competitiveness, including 
innovation, and the capacity to attract investment, businesses and human capital and address 
cost and non-cost factors that can affect prices and quality content of goods and services 
including relative to global competitors in the short term. Analysis would be based on 
transparent and comparable indicators; and 
(b) 
Independent analysis of policy challenges in the field of productivity and competitiveness, 
and, if and to the extent foreseen in their national mandate, assessment of the effects of 
policy options, making trade offs of policy explicit. 
5. 
Each Member State should identify one productivity  board, which could in turn rely on, or 
consist of different existing bodies. 
6. 
Productivity boards should carry out their activities on a continuous basis. They should 
make their analyses publicly available and publish an annual report. They should be engaged 
in contacts with productivity  boards of other Member States with the aim of exchanging 
views and best practices, and where appropriate produce joint analysis, also taking into 
account the broader Euro Area and EU dimension. The Commission will on a regular basis 
exchange views with all participating productivity  boards, including during fact-finding 
missions to Member States, and could faciliate the exchange of views between the 
productivity  boards.  
 
 
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III. Characteristics of the productivity  boards 
7. 
Productivity  boards should be endowed with functional autonomy vis-à-vis any public 
authority in charge of the design and implementation of policies in the field of productivity 
and competitiveness in the Member State or at European level . To fullfill the tasks of this 
present recommendation they should be underpinned by national provisions ensuring a 
high degree of functional autonomy and accountability, including: 
the capacity to communicate publicly in a timely manner; 
procedures for nominating members on the basis of their experience and competence; 
appropriate access to information to carry out their mandate. 
8. 
Productivity  boards should be objective, neutral and fully independent regarding analysis 
and content. They may consult relevant stakeholders, but should not convey only or mainly 
the opinions and the interests of a particular group of stakeholders. 
9.  
Productivity  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. The 
analysis could be produced by existing and separate bodies provided that it is of the same 
high quality. 
 
IV. Articulation with the European Semester 
 10. 
The independent expertise provided by those boards, including through the annual reports, 
could be used by Member States and the Commission in the context of the European 
Semester and the Macroeconomic Imbalance Procedure. This recommendation does not 
alter the assigned responsibilities for the European Semester, including designing and 
monitoring of the Country Specific Recommendations, or the application of the 
Macroeconomic Imbalances Procedure as established in Regulation (EU) No 1176/2011. 
 
 
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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 of the euro area are invited to implement the principles set out in this 
Recommendation by no later than date of adoption of this recommendation + 18 months.  
13. 
By date of adoption of this recommendation + 30 months, the Commission is invited to 
prepare a progress report, on the basis of relevant information from all Member States on 
the implementation and the suitability of this Recommendation, including whether the 
adoption of further provisions appears necessary. If warranted, the report shall be 
accompanied by a proposal to adapt this Recommendation.  
 
Done at Brussels, 
 
For the Council 
 
The President 
 
 
 
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