Brussels - Plans by the Governments of the European Union to reduce budget deficits and to stimulate their economies are often too vague and step quite ambitious, Executive of the bloc warned Tuesday in a broader effort to prevent another economic crisis.
For the first time this year, the EU should present their plans for government budgets and economic reforms to the European Commission as part of an annual exercise introduced last fall, when the block was shaken by a strong economic recession.
The recommendations of the political Committee by countries seeking to catch the unsustainable developments before they lead to another systemic crisis, such as that which has already pushed five States of the EU - countries euro, Greece, Ireland and Portugal and the Romania and the Latvia - to search billions of euros in aid.
However, some programs (presented by the Member States) show an insufficient level of ambition and others lack specificity, "President of the Commission José Manuel Barroso told reporters in Strasbourg, France."
Some States do not enough to reduce government expenditure in accordance with the rules of the EU and do not have clear plans for getting back to people at work, at the discretion of the Commission. Unemployment and long-term unemployment among young people and women are also serious problems in the countries which were not so harshly affected by the crisis, the Commission warned.
The EU has limits on debt and deficits for years, but these rules have been violated on several occasions before the crisis. The budget and the recommendations for reform are part of a larger push to make these rules more effective - and expand them to include dangerous trends such as housing and banking bubbles, but their implementation is still in individual States and depends largely on name and shame by the Commission and the other countries of the EU.
A separate law that would allow fines be levied on countries whose finance and economies are out of the line is currently be combated by the Member States and the European Parliament.
"Our economies are interdependent to a degree never before, and this requires that cooperate us more closely and more effectively than we have in the past," Barroso said.
Recommendations give the EU the opportunity to highlight defects in healthier economies, like the Germany, Austria and Netherlands, at a time where much of his attention is focused on already reached-out countries. This is important because the Ireland and the Spain, which are now facing severe budget challenges, have long been considered model States as problems in the markets of the housing and banking sectors have been ignored.
In addition to the budgetary plans, EU Member States were also requested to clarify how they plan such more general targets that stimulate renewable energy, reduce emissions of carbon dioxide and for a stay of children in school.
While States are on track to meet those promises, "additional efforts will be necessary to achieve the objectives in the areas of employment, research and development, energy efficiency, higher education and the reduction of poverty" said Barroso.
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