On 16 February, EU Ministers of Economy and Finance discussed the Greek deficit and the implementation of the Directive on Services.
Greek Deficit
The Council placed binding obligations on Greece to reduce its deficit by 4% points this year (from the estimated 12.7% deficit for 2009) and to bring it below 3% of Gross Domestic Product (GDP) by 2012. Ministers also announced a list of reforms that Greece should implement to remedy its public finances, including reductions in civil service recruitment, a pay freeze for the civil service, tax reform and a steep cut in the number of Greek municipal authorities.
Ministers asked Greece to present a first report by 16 March 2010 setting out the timetable for implementing budgetary target measures for 2010, and another outlining the policy measures needed to comply with the Council's decision should be submitted by 15 May 2010 (quarterly reports should be submitted thereafter).
The Council welcomed the Commission's examination of the issues regarding the Greek government deficit and debt statistics (click here to download the report) and urged the Greek government to address the technical procedures in the Greek national services, as well as the improvements to the governance and institutional structures as identified in the report.
This issue was also discussed at the Economic and Financial Affairs Council on 19 January and at the informal EU Council meeting on 11 February.
EU Single Market - Directive on Services
Ministers underlined that there are still significant internal and external challenges in moving towards an EU single market and maintaining long-term global competitiveness which will require a commitment to a broad set of ongoing single market reforms, like the Directive on Services which aims to remove barriers to the cross-border provision and establishment of a very wide range of services.
The Council stressed the importance of the internal market for services as a key element for ensuring competitive pricing, enhancing competitiveness more generally, and increasing potential growth and employment. Ministers called for a comprehensive implementation of the Services Directive, urging the Member States that have not met the transposition deadline of 28 December 2009, to do the utmost to implement the Directive as soon as possible.
Background information
The Services Directive aims to remove barriers to the cross-border provision and establishment of a very wide range of services, including training and education, and services provided by legal and tax advisers (for further details, please visit the European Commission website on the Services Directive). It also aims at dismantling barriers affecting consumers or businesses wanting to have access to services from other Member States, as well as enhancing recipients' rights and the quality of services.
In order to implement the directive, Member States must bring into force the laws, regulations and administrative provisions necessary to comply with it. In this process, they must review national rules, and set up a point of single contact for service providers, put in place electronic procedures and intensify administrative cooperation.
For more information, please read the Council Conclusions .
Next meetings of the Economic and Financial Affairs Council (ECOFIN):
16 March
15-17 April (informal)
18 May
8 June