ECOFIN Council endorses measures to boost growth of European economy
In preparation for the forthcoming European Council meeting in Brussels, EU finance ministers formally adopted an interim report on the 'European initiative for growth' in Luxembourg on 7 October. Drawn up by the Economic and Financial Committee, the interim report examines the Commission's initiative for mobilising investment in key areas, most notably trans-European network projects (TENs), innovation, and research and development (R&D), with a view to raising potential growth, improving productivity and competitiveness, and creating jobs. Debating the report's findings, EU ministers at the ECOFIN Council agreed that the growth initiative should be seen as a part of the process of structural reform in the context of the Lisbon strategy, and not be regarded as conflicting with the commitments contained in the Broad Economic Policy Guidelines and the Stability and Growth Pact. Noting the vital role that efficient networks and research infrastructures can play in a knowledge based economy, finance ministers also agreed that the initiative is right to place emphasis on investing in trans-European network projects, innovation, and (R&D). To foster growth in these areas, the Council endorsed the report's recommendations to the Commission and the European Investment Bank (EIB) with regard to further exploring ways of increasing public and private sector investment in TENs, innovation and R&D projects, as well as facilitating partnerships between the public and private sectors. Specifically, the report calls for better coordination of the procedures between EIB financing, Structural Funds, the TENs budget line and the Sixth Framework Programme. Ministers also underlined the need for Member States to redirect government expenditure to foster growth-enhancing investment. In terms of selecting projects for funding, the report states that priority should be given to projects that best contribute to the completion of the internal market and that are conceived within the context of an enlarged Europe. Furthermore, since resources are limited, the report argues that the initiative should also concentrate on reducing barriers to projects with high economic returns. To facilitate this process, the Council backed the report's call for the establishment of a 'quick start programme' to identify projects which fulfil these prerequisites. The report, endorsed by the ECOFIN Council, will be forwarded for discussion at the Brussels European Council on 16 and 17 October. Based on further contributions from the Commission, EIB and Member States, a final report will be tabled at the next ECOFIN meeting on 25 November.