European semester 2014
The European Semester , or country-specific recommendations, from 2014 were recommended by EU Economic and Monetary Affairs Commissioner Olli Rehn to the member states of the European Union , in particular the euro zone , as measures to be recommended to increase the competitiveness of the states. This article is a summary of the individual countries.
Germany
The Federal Republic of Germany is recommended to increase the efficiency of the health and care system, since Germany spends a considerable part of the budget on it, but the system is no better than in other EU countries such as Great Britain, which in relative terms spend significantly less. In addition, the tax system is to be simplified, and the debt brake in the federal states is to be checked more closely, as some federal states such as Berlin or Bremen differ greatly from it. The state-supported Landesbanken are to reorganize their business activities in order to become more crisis-resistant in the future and more independent of the interbank market.
The government should also consider improving wages in Germany, since productivity in Germany is rising significantly faster than wages, the supply of all-day childcare facilities and schools is to be increased, and tax incentives for second earners are to be abolished. With the energy transition, care must be taken that the costs will not rise to the previous high degree and that the electricity and gas networks must be adapted to the new conditions in order to guarantee security of supply.
The German railway system is to receive improved competition through a separation of infrastructure and freight / passenger transport, as this means a high inhibition threshold for new market entrants. The service sector should be more liberalized, especially the construction sector, in order to increase productivity.
Austria
The Republic of Austria should take measures to raise the retirement age from the current average of 58.4 years, especially with regard to the retirement of civil servants, as the EU Commission sees a risk to the sustainability of public finances here. As in Germany, the health and care system is to be made more efficient. The high tax and contribution burden for low-wage earners should be reduced and compensated for by real estate taxes and an update of the tax base, as this measure would be both more socially just and more growth-friendly. The labor market opportunities of women and older workers should be improved through childcare and long-term care services. Measures are to be taken against the high school dropout rates.
The obstacles faced by service companies with regard to the requirements for legal form and participation in share capital are to be removed and the creation of new companies to be made easier. In addition, more public contracts are to be put out to tender, as this results in savings potential for the state budget.
France
France should reduce its high budget deficit. B. by setting more ambitious targets for annual health expenditure, limiting pension costs and tightening family and housing benefits. In addition, Commissioner Rehn is convinced that the elimination of overlaps in administration and the merging of individual regions offers further savings potential. The administrative, tax and accounting regulations for companies are to be simplified. Competition in the service sector is to be increased, for example by opening up regulated professions.
In addition, France should try to ensure that the fixed gas and electricity prices for private customers do not rise too much and that the Spanish gas network is connected to the European gas network. Rail passenger services are to be opened, as these measures have so far hardly been taken in France.
The entire tax system is to be simplified and the tax burden is also to be reduced, especially on the employers' side, as these are the highest in the entire OECD . Inefficient income and corporate tax reliefs and subsidies with harmless effects are also to be abolished, and the tax base is to be expanded. Together with the social partners, the system of benefits for the unemployed and the rigid labor market are to be reformed. As there are relatively few incentives to return to work in France, in particular through unemployment benefits of up to € 6,000. The vocational education system is also to be reformed, in which more efforts are made against early school leavers, as well as the expansion of apprenticeship training and the education of the low-skilled.
Italy
Italy should step up efforts to reduce the budget deficit and, above all, the high level of debt by improving the efficiency of public administration and privatization. Production costs are to be reduced by placing the tax burden more on consumption, property and the environment than on production; this includes adjusting taxes on diesel fuel to the level of gasoline. In addition, the cadastral system, the fight against tax evasion, the collection of tax debts, the tax system and the fight against the shadow economy are to be improved. The limitation periods for corruption cases are to be increased, as many cases only became known after the short limitation periods and are therefore not punished. The competencies of the anti-corruption authorities and civil justice are also to be strengthened.
An improvement in social protection for the unemployed, a stronger link between active and passive labor market policy, improvement of employment agencies and more financial incentives for second earners are also planned. Vocational training should focus more on on-the-job training. Reducing the barriers and barriers to competition in professional and local public services, insurance, fuel distribution, retail and postal services is another point in the recommendations for Italy.
The workability of the traffic and port authorities is to be improved and infrastructure connections to the hinterland to be expanded.