Recommendations on social policies. A proposal by the European Commission on “economic governance and macroeconomic imbalances” published on September 29th provides for the implementation of an alert mechanism at the level of the European Union (EU) with scoreboards and indicators to prevent crisis scenarios as Greece witnessed. The proposal provides, “If macroeconomic imbalances are identified, recommendations should be addressed to the Member State concerned to provide guidance on appropriate policy responses. The policy response of the Member State concerned to imbalances should be timely and should use all available policy instruments under the control of public authorities. It should be tailored to the specific environment and circumstances of the Member State concerned and cover the main economic policy areas, potentially including fiscal and wage policies, labor markets, product and services markets and financial sector regulation.” In other words, the European Commission reserves the right to prescribe the solutions it judges best to restore the competitiveness of some economies and force the Member States to comply with the Stability and Growth Pact.
ces should be timely and should use all available policy instruments under the control of public authorities. It should be tailored to the specific environment and circumstances of the Member State concerned and cover the main economic policy areas, potentially including fiscal and wage policies, labor markets, product and services markets and financial sector regulation.”
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