EN Official Journal of the European Union L 183/1

COUNCIL RECOMMENDATION

of 25 June 2009

on the 2009 update of the broad guidelines for the economic policies of the Member States and the Community and on the implementation of Member States’ employment policies

(2009/531/EC)

THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty establishing the European Community, and in particular Article 99(2) and Article 128(4) thereof,

Having regard to the recommendation from the Commission,

Having regard to the conclusions of the European Council on 13 and 14 March 2009,

Having regard to the opinion of the Employment Committee,

Whereas:

(1) The Council adopted, on 12 July 2005, Recommendation 2005/601/EC on the broad guidelines for the economic policies of the Member States and the Community (2005 to 2008) (1) and Decision 2005/600/EC on Guidelines for the employment policies of the Member States (2), which together form the ‘Integrated guidelines for growth and jobs’. Member States were invited to take the Integrated guidelines for growth and jobs into account in their national reform programmes (hereafter ‘NRPs’).

(2) The 2006, 2007 and 2008 Spring European Council identified and confirmed four priority areas (R & D and innovation, business environment, employment opportunities and an integrated energy/infrastructure policy) which are the pillars of the renewed Lisbon Strategy. Within these areas the European Council agreed a limited number of specific actions which it urged Member States to complete by set deadlines.

(3) In accordance with the conclusions of the 2006 Spring European Council, the Member States present annual reports on the implementation of the national reform programmes (hereafter ‘implementation reports’).

(4) On the basis of the Commission’s analysis, a number of country-specific recommendations were issued to the Member States in 2007 and in 2008.

(5) In order to pursue the Lisbon strategy for growth and jobs in a coherent, integrated manner, these recommendations were adopted in a single instrument. This approach reflected the integrated structure of the NRPs and implementation reports, as well as the necessary consistency between the employment guidelines and the broad economic policy guidelines of Article 99(2) of the Treaty, as underlined in Article 128(2) thereof.

(6) The 2008 Spring European Council launched a second cycle of the renewed Lisbon Strategy, which will be completed in 2010. The Council adopted, on 14 May 2008, Recommendation 2008/390/EC on the broad economic policy guidelines for the Member States and the Community (2008 to 2010) (3), and, on 15 July 2008 Decision 2008/618/EC on guidelines for the employment policies of the Member States (4), which together form the current ‘Integrated guidelines for growth and jobs’.

(7) Following this, Member States confirmed, updated or drew up new NRPs, which they submitted to the Commission by October 2008 together with an implementation report. In order to reinforce coordination of reforms and enhance the multilateral surveillance process in the Council, the 2008 Spring European Council asked Member States to set out detailed and concrete actions addressing their specific policy response to the Integrated Guidelines, country-specific recommendations and ‘points to watch’ in their NRPs and the subsequent annual implementation reports.

(8) In the context of the current economic downturn, the European Council in 2008 agreed on a European Economic Recovery Plan (hereafter ‘the Recovery Plan’), based on a proposal of the Commission. This plan provides for a coordinated budgetary stimulus, within the Stability and Growth Pact, to boost demand and restore confidence, taking account of Member States’ starting positions and efforts already undertaken in response to the economic problems. The Recovery Plan envisages that the budgetary stimulus be accompanied by an acceleration of structural reforms, grounded in the Lisbon Strategy, to stimulate the economy whilst boosting the Union’s long-term growth potential, notably by promoting the transition towards a low-CO2 emitting, knowledge-intensive economy. It also presents proposals to stimulate EU labour markets, notably through the implementation of integrated ‘flexicurity’ policies focused on activation measures, and skills. These are essential in promoting employability and ensuring rapid re-integration into the labour market.

(9) The Commission and the Council will assess measures taken to respond to the economic downturn in line with the principles set out in the Recovery Plan as agreed by the European Council, inter alia, taking due account of the need to ensure the reversibility of the fiscal deterioration, improving budgetary policy-making, and ensuring long-term sustainability of public finances.

(10) The country-specific recommendations addressed in Council Recommendation 2008/399/EC of 14 May 2008 on the 2008 update of the broad guidelines for the economic policies of the Member States and the Community and on the implementation of Member States’ employment policies (5) should now be updated, to reflect the progress made with the implementation of the NRPs and the principles of the Recovery Plan. These recommendations should be implemented swiftly. The Commission will provide assistance as part of the Lisbon partnership, monitor and regularly report on progress.

(11) To fully implement the Lisbon strategy for growth and jobs, this Recommendation should also contain specific recommendations to the Member States belonging to the euro area.

(12) The European Parliament has adopted a resolution regarding this Recommendation (6),

HEREBY RECOMMENDS that Member States should take action along the lines set out in the Annex.

Done at Luxembourg, 25 June 2009. For the Council The President L. MIKO

(1) OJ L 205, 6.8.2005, p. 28.

(2) OJ L 205, 6.8.2005, p. 21.

(3) OJ L 137, 27.5.2008, p. 13.

(4) OJ L 198, 26.7.2008, p. 47.

(5) OJ L 139, 29.5.2008, p. 57.

(6) Opinion of 11 March 2009 (not yet published in the Official Journal).