EU approves the Compact for Growth and Jobs

  • 2012-06-29

BRUSSELS - EU leaders in Brussels have endorsed the Compact for Growth and Jobs which sets out measures to boost economic growth and jobs in Europe. The European Council meeting has also approved country-specific recommendations for enhancing economy in each EU member state.

President Dalia Grybauskaitė, currently attending the European Council meeting, underlined that the Compact was an important tool aimed to resolve the issues of economic recession in the European Union, yet strict financial discipline must be also further observed.

"Economic situation in the European Union is very complicated. We have to act responsibly, within our financial capacity, and to exploit fully the instruments designed to boost economic growth. The Compact is an important measure which will contribute to achieving EU's economic growth and, at the same time, ensuring fiscal discipline," the President said.

The participants of the meeting were looking for ways to combat the recession and boost Europe's economic growth.

The Compact outlines a roadmap for addressing the economic issues at the national and European levels and for strengthening the Economic and Monetary Union. 120 billion euro support to boost business, reallocating structural funds and expanding the European Investment Bank's overall lending capacity is among key measures spelled out in the Compact.

The Compact also includes measures to reduce unemployment, strengthen the business environment, conduct tax reform, and create the EU internal energy market.

Recommendations to Lithuania include continued efforts to reduce the budget deficit, promote employment, conduct an overall pension reform, reduce poverty and social exclusion, improve energy efficiency in buildings, and implement the reform of state-owned enterprises.

According to the President, at this European Council meeting the first steps have been made towards resolving the issues of banks in the euro zone. However, she said, it is still a long way to go. The leaders of the euro area member states have agreed on more effective banking supervision mechanism, with greater involvement of the European Central Bank, and on increased efficiency in exploiting the European Stability Mechanism with the aim to ensure financial stability across the euro zone.

The European Council has invited to strengthen cooperation with EU neighbors seeking to ensure the international nuclear safety requirements.