The agenda for Prime Minister Joseph Muscat’s first EU summit

The meeting of the European Council being held today and tomorrow is Prime Minister Joseph Muscat’s first official engagement outside the country since he took office, as well as his first opportunity as Prime Minister to meet with heads of state or government of the other 26 member states of the European Union.

Dr Muscat has, over the past days, spoken about this meeting and emphasised continuity on the issues to be discussed as well as on the fact that he will be assuring our EU partners on the new government’s commitment to the EU. In his first address to the nation last Monday, Malta’s new head of government also spoke of the need to shoulder responsibilities as EU members and that he was ready to take firm decisions in negotiations with the European Union.

This meeting of the European Council marks the conclusion of the first phase of the 2013 European Semester. The European Semester, first launched in January 2011, is a policy coordination tool at EU level forming part of the Union’s strategy to strengthen economic governance, ensure budgetary discipline and promote job creation.

In his letter to the members of the European Council, President Herman Van Rompuy referred to recent forecasts that indicate that economic recovery in the EU will be slow and fragile.

“Therefore, in 2013 we must continue to press on with structural reforms that will boost European competitiveness and will further reinforce confidence in the European economy,” he said. For this to happen, new sources of growth and jobs need to be tapped and the Union must also proceed with the deepening of the single market by removing remaining barriers. Van Rompuy states that for this to happen, national positions need to be more flexible and member states must be more willing to compromise

Also on the agenda of the European Council is a review of the progress being made by member states in implementing the 2012 country-specific recommendations. Annually, the European Commission analyses the economic situation of every member state and puts forward recommendations on measures tailored to the particular issues that each member state is facing that the member states should adopt over the coming 12 months. It is the European Council that is responsible for the final adoption of these recommendations.

The 2012 recommendations for Malta were the following: 1. A reinforcement of the budget

ary strategy 2. Immediate action to ensure the long-term sustainability of the pension system, including further increasing the retirement age 3. Steps to reduce the high rate of

early school leaving 4. Reform of the system of wage bargaining and wage indexation (COLA) 5. Greater effort to promote energy efficiency and increase the share of energy produced from renewable sources 6. Strengthening the banking sector When these recommendations were adopted in June 2012, Malta objected to Recommendations 2 and 4 and described the process leading to the adoption of the recommendations as one that “dictates draft recommendations which are a fait accompli from the outset” rather than “encouraging member states to agree with and take ownership of the recommendations - thereby increasing the possibility of their implementation.”

The 27 heads of state and government are also expected to guide member states on the 2013 Stability and Convergence programmes. The Stability and Growth Pact, a rule-based framework established to coordinate national fiscal policies, requires member states to submit stability or convergence programmes to the European Commission. These programmes seek to ensure sound public finances through the multilateral surveillance of national budgets and the coordination of economic policies.

The European Council will also guide member states on the implementation of the Europe 2020 “flagship initiatives”, particularly those in relation to the agenda for new skills and jobs, industrial policy, the innovation union and the digital agenda. The Europe 2020 Strategy, the Union’s strategy for growth, lays down seven flagship initiatives to be implemented by the EU and the member states by 2020.

Prior to the European Council meeting, Dr Muscat will also be meeting Prime Ministers and leaders belonging to the Party of European Socialists to discuss common policies and goals to be achieved during the Council.