The convergence program.

National Reform Program
Anette Björnsson
European Commission, DG EMPL
General
• NRP is done according to the needs of the
Member State
• Therefore there is no predefined format
• But it should be in line with the commonly agreed
• Employment guidelines
• Annual Growth Survey
But there is some mandatory content
• It should contain
• The national targets
• An answer to the country specific
recommendations y(t-1)
• An answer to the Euro Plus Pact
• Cross references to the Stability/Convergence
Programmes
General content of an NRP
• Macro economic scenario and surveillance
 The convergence program.
• National objectives
• How the country is going to achieve the five
objectives in the Europe 2020
 Either as a general description or as sections
devoted to each of the 3 growth areas
• The response to the CSR
 Either described in the text or only as the
mandatory annex
• The country's response to the Euro Plus Pact
Euro Plus Pact – a reminder
Assuring the link between the following
• fostering competitiveness
• fostering employment
• contributing to the sustainability of public
finances
• reinforcing financial stability
 Thereby using the integrated guidelines
More information on NRP 2012
All MS NRPs are available here:
• http://ec.europa.eu/europe2020/reaching-thegoals/monitoring-progress/national-programmes2012/index_en.htm
• Contains the NRP, the annexes 1 (response to
CSR) and 2 (progress on Europe 2020 targets)
and the convergence program and in some cases
also a description of the governance
Country Specific Recommendations
1. In year (t-1) the Member State receives
recommendations on the basis of that year's
NRP
2. These recommendations should be taken into
consideration in year (t) and answer the
following questions
• Did the policies in year (t) take the CSR for year
(t-1) into consideration
• Is there a visible impact/development
State of
Yearly
Progress
Overall and
and
(including
yearly
cumulate
the
change in
d effect Descrip Assumptions of
implemen
Risk of
government
Description Legal/admini
on GDP tion of
the model,
Formal
tation implemantio revenue and
of the
strative
and other the
including
objectives stage,the
n (if
expendiute
measure
instruments
main
model variables and
sequence relevant) (reported in
macreocn used
parameters
and
mln.
omic
timing of
national
variables
the
currency)
(4)
measure)
Measure 1
Public
finance
Labour
Market
Product
and
service
market
Financial
market
CSR 1
CSR 2
CSR 3
Measure 2
Measure 3
Measure 1
Measure 2
Measure 3
Measure 1
Measure 2
Measure 3
Measure 1
Measure 2
CSR 4
Measure 3
CSR 5
Measure 1
Measure 2
Measure 3
1
Measures Measure
Measure 2
with an
impact
on
macroec Measure 3
onomic
scenario
(3)
(1) This classification is in line with that already used within the framework of CSRs monitoring
under the first European Semester.
(2) The number of CSRs differs across Member
States
(3) Regardless the main area of intervention, it includes any sort of structural measures planned or enacted by Member States that are not under a
previous CSRs, but have an impact on macroeconomic scenario
(4) Other macroeconomic variables mainly refer to the main components of domestic demand (private
consumption and investment) and employment.
Annex 2: Reporting table on national Europe 2020 targets and other key commitments
Progress on implementation
List of measures and their state of play that were implemented The estimated impacts of the measures
in response to the commitment
(qualitative and/or quantitative)
National 2020 headline targets
National 2020 employment target [..]
National 2020 R&D target [..]
GHG emission reduction target [..]
Renewable energy target [..]
National energy efficiency target [..]
National early school leaving target [..]
National target for tertiary education [..]
National poverty target [..]
Euro-plus pact commitments (if relevant)
Euro Plus Pact commitment on …
Other (if relevant)
Other key bottlenecks identified in the NRP
Main (new or updated) commitments in the
NRP for the next 12 months
Main commitments in relation to each of the
AGS priorities, as relevant
New/updated Euro Plus Pact commitments
New/updated commitments in relation to the
2020 targets (per target)
Other commitments (e.g. in relation to key
bottlenecks identified in the NRP, as relevant)
Foreseen main measures
The estimated impacts of the measures
(qualitative and/or quantitative)
Analysis carried out to establish the
CSRs – JAF and EPM
JAF
•
•
•
•
•
•
Indicator based assessment system
General and specific policy areas
Supporting Member States in establishing their priorities
Contribute to an overall assessment of progress at EU level.
It is a joint Commission, EMCO and SPC tool
Aim:
• Clarify key employment challenges and potential risk areas by
monitoring structural reforms under the employment guidelines both
quantitatively and qualitatively
• Monitoring of progress towards the EU headline targets, quantitatively
What is a JAF? Example
• Policy area 1: increase labour market
participation
• Overall indicator: employment rate
• Sub-indicators:
• Employment gender gap
• Employment rate in old-age group in relation to
the total population in that age group
• NEET
• Employment rate for low-skilled
• Employment rate for non-EU nationals
Country A (Sub-population w eighted scores)
Country A (unw eighted scores)
Total 20-64
Total 20-64
Men 20-64
Men 20-64
Women 20-64
Women 20-64
OWs 55-64
Ow s 55-64
OW men 55-64
OW men
55-64
OW w omen 55-64
OW w omen 55-64
Youth 20-29
Youth 20-29
Low -skilled 20-64
Low -skilled 20-64
Non-nationals 20-64
Non-nationals 20-64
-14.0
-12.0
-10.0
-8.0
-6.0
-4.0
-2.0
0.0
-4.0
-3.5
-3.0
-2.5
-2.0
-1.5
-1.0
-0.5
0.0
Analysis carried out to establish the
CSRs – JAF and EPM (cont)
EPM
• The results produced by the JAF will feed into the
Employment Policy Monitor
• It assures a clear, transparent, concise and easy way to
analyse the development
• can be used to identify at a glance the main employment
challenges for the European Union and for each Member
State
Employment policy area
1. Increase labour market participation
2. Enhancing labour market functioning;
combating segmentation
3. Active labour market policies
4. Adequate and employment oriented social
security systems
5. Work-life balance
6. Job creation
7. Gender equality
8. Improving skill supply and productivity;
Lifelong learning
9. Improving education and training systems
10. Wage setting mechanisms and labour cost
developments
Key employment
challenges
Particularly good labour
market outcomes
2012 general challenges
A. Low participation or high unemployment
For women due to insufficient access to childcare, insufficient fiscal treatment of second earners and gender pay gaps
For older workers due to weak participation in lifelong learning and remaining early retirement schemes
For young people, migrants and low skilled workers due to low funding and weak targeting of ALMPs
B. Existence of unemployment traps
Due to weak incentives to take up paid work
C. Weak competitiveness positions
Due to unfavourable wage developments
Due to delays in positive productivity developments
D. Challenges gaining importance in 2012
Labour market segmentation, driven by employment protection legislation
Increasing long-term unemployment, caused by mismatches in terms of skills and geography
An effective NRP
• The content of a NRP should be conscise and clear
• It should be clear that challenges identified in year
(t-1) are targeted
• There should be a clear link between the LM and the
rest of the economy through the convergence
program and the Euro Plus Pact.
• Looking at the employment package
• Governance is even more emphasised
• More monitoring is suggested also at the level of
employment policies
• For 2013 the emphasis will be put also on the areas
suggested for moving closer to achieving the targets for
2020 and return to a positive growth path.