Brussels, Nov 22 (EFE). - The European Commission (EC) today urged the Member States of the European Union (EU) to carry out structural reforms that allow boosting investment and increase the growth of real wages to support domestic demand, without neglecting the "responsible" fiscal policies.
With these proposals, Brussels urgently needs to find the balance between support for economic expansion and sustainability of public finances, in particular by reducing high levels of debt.
Recommendations are part of the so-called "autumn package of the European semester", which contains the evaluations of the budgets of the eurozone countries for 2018, with the exception of Greece, and orientations for the economic policies of the countries of the single currency and of the Twenty-eight.
The Executive of the EU highlights the economic growth and the improvement of the market but stresses that salaries increase "slowly" and that the priority now is to ensure that "the strong growth momentum" is maintained and "benefits all members of our societies. "
Thus, it urges to promote investment as a means to support expansion and to increase productivity and growth in the long term, in addition to insisting on the the need for structural reforms to make the European economy "more stable, inclusive, productive and resilient".
"Fiscal policies should find balance appropriate between ensuring the sustainability of public finances and supporting economic expansion. priority, "Brussels said in a statement.
For the eurozone in particular, the European Commission also calls for reforms aimed at increasing productivity, improving the environment institutional and business, facilitate investment, support the creation of quality jobs and reduce inequality.
"The eurozone economy is growing at its fastest pace in ten years and its average deficit will fall below 1% of GDP next year, from 6% in 2010. However, several Member States continue to bear high levels of public debt, that limit their ability to invest in the future, "said the Commissioner of Economic Affairs, Pierre Moscovici.
Thus, the Community Executive proposes to countries with a deficit or a high external debt increase productivity, while those with surpluses are asked to promote the growth of wages and boost investment and domestic demand.
After the revelation of the "roles of paradise", on the activities of public figures in opaque territories, Brussels calls on the countries of the euro area, also, to combat the "aggressive" tax planning, which avoids paying taxes.
In addition, the EC urges countries to reduce the levels of unproductive credits, as well as to complete the single market, the Economic and Monetary Union and the Banking Union, including the European Deposit Guarantee System and the entry into operation of the Single Resolution Fund firewall (FUR).
After proposing last year a fiscal stimulus of 50,000 million euros, a first step towards an expansionary policy, in 2017 Brussels opts for a budgetary position neutral.
Regarding the budget plans of the euro partners, the Commission fears that Belgium, Italy, Austria, Portugal and Slovenia fail to meet the deficit targets agreed with Brussels for 2018.
In addition, for Belgium and Italy also anticipates a breach of debt reduction targets.
The high Italian public debt is especially worrying to the Commission, to the extent that the Vice-President of the Community Executive, Valdis Dombrovskis, and Commissioner Moscovici have sent a letter to the authorities of the country to notify their intention to review the fulfillment of the debt objectives next spring.
As the EU Executive recommended today to close the procedure due to excessive deficit to the Kingdom United, only France and Spain are in that process.
Although it is expected that France will put its deficit below 3% and abandon that procedure after 2018, the EC will also it indicates that it could not respect its commitments under the Stability and Growth Pact next year.
As for Spain, it expects it to reduce its deficit below 3% in 2018, although it warns that it will not fulfill the agreed objective of taking it to 2.2%.