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European Commission eases austerity time frame

Some Eurozone countries will be allowed to ease austerity cuts, following a package of recommendations from the European Commission.

France, Spain, Portugal, Slovenia and the Netherlands will all be given more time to complete their austerity plans, and targeted to reform labour market and pensions.

Included in the Commission’s recommendations to the UK are calls to improve the availability of bank and non-bank finance to SMEs and the pursuit of a long-term infrastructure plan.

Elsewhere, the report recommends focus on improving the employment rate among women and young people, and calls for further improvement of housing supply.

European Commission President, José Manuel Barroso, said: “Now is the time to step up the fundamental economic reforms that will deliver growth and jobs, which our citizens, especially our young people, anxiously expect.

“This is the only way to address the two lasting legacies of this crisis – the serious loss of competitiveness in many of our Member States, and persistent unemployment, with all its social consequences.

“The recommendations issued by the Commission are part of our comprehensive strategy to move Europe beyond the crisis. They are concrete, realistic, and adapted to the situation of each of our Member States.”

The recommendations do not apply to countries currently under a macroeconomic adjustment programme, including: Greece, Ireland, Portugal and Cyprus.

More on the country-specific recommendations can be found here.

This was posted in Bdaily's Members' News section by Tom Keighley .