25 March of 2011. European council decisions1.

The four objectives:

1. Foster competitiveness: Progress will be assessed on the basis of wage and productivity

developments and competitiveness adjustment needs. To this aim, particular attention

will be given to the following

a. measures to ensure costs developments in line with productivity such as:

i. Review the wage setting arrangements, the degree of centralization in

the bargaining process and the indexation mechanisms.

ii. Ensure that wages settlements in the public sector support the

competitiveness efforts in the private sector.

b. Measures to increase productivity

i. Unjustified restrictions on professional services and the retail sector.

ii. Improve education, promote R&D, innovation and infrastructure.

iii. Removing red tape and improving the regulatory framework for

business particularly for SMEs.

2. Foster employment

a. Labour market reforms to promote “flexicurity”2, reduce undeclared work and

increase labour participation;

b. life long learning;

c. tax reforms, such as lowering taxes on labour to make work pay while preserving

3. Enhance t he sustainability of public finances:

a. Pensions, health care and social benefices will be evaluated in terms of

sustainability. Also

i. Aligning the pension system to the demographic situation by aligning

the effective retirement age with life expectancy or by increasing

participation rates.

ii. Limiting early retirement schemes

b. National fiscal rules. Translation of fiscal EU rules in national legislation to

ensure fiscal discipline at both national and sub-national levels.

4. Reinforce financial stability. Member states will put in place national legislation for

baking resolution. Bank stress test will be undertaken under regular basis and the level

of private debt for banks, households and no-financial firms closely monitor.

5. Tax police coordination. Member states commit in structured discussions on tax policy

issues to ensure the exchange of best practices, avoidance of harmful practices and fight

against fraud and tax evasion. Developing a common corporate tax based will contribute

to fiscal sustainability and the competitiveness of European businesses.

1 The heads of the state or government of EU member states, along with its President and the president of the

commission 2 Flexicurity wiki definition