The European Commission has recommended different ways to boost the socio-economic condition of their member countries. The recommendations are of a mixed bag and if you want to know the highlights of those recommendations, then keep on reading below.
The French economy is a bit damning. The measures given by the fiscal consolidation isn’t enough to make sure that the country will be able to meet its economic target. There are areas of the French government wherein the socialist government will not be pleased. The commission also stressed the cost of French labour stating that the firm’s profitability has reduced. The European Commission highlighted the current flaws in the economy of French particularly the government’s lack of strategy.
The report of the Commission stressed that Germany should improve its condition to support domestic demand by simply reducing high taxes and the contributions to social security, especially for people with low wage. The Commission also asked the country to come up with a more ambitious measure to stimulate competition, especially in the services sector, educations, infrastructure, and research.
The Commission is somewhat in doubt on the latest budget forecast of Italy stating that the budgetary targets are not supported by detailed measures. By coming up with a detailed budget measures, the domestic debate between Matteo Renzi; Italian prime minister and his critics will be revived.
The European Commission suggested that Spain should reinforce their 2014 budgetary strategy and that the country should thoroughly specify the underlying measures for 2015 and beyond.
In 2011, the EU’s budget was € 140 billion, which is actually not enough when compared with the total national budget of the 27 EU member states. So, basically the average EU citizen is only paid 67 cents daily to finance the yearly budget in 2010. As a matter of fact, the EU budget is smaller than the budget intended to the medium-sized member state such as Belgium and/or Austria.
Looking at the EU budget in a more detailed way
Some people think that the commission has the highest budget, but in reality it is not. In fact, the EU budget is always balanced. The national budget continues to increase its spending. Who decides the EU budget? Well, the yearly EU budget is decided by the elected politicians both in the European Council and the European Parliament. The EU Commission proposed a Multiannual Financial Framework, which will be adopted as per the democratic procedures.
The European Commission has all the rights to propose law for adoption by the EU Council and the European Parliament. The primary role of the commission is to make proposals that will meet its obligations under the EU treaties. Prior to making proposals, the European Commission will first consult its stakeholders. Basically, the stakeholders and the commission in general will assess the potential economic, environmental, and social impact of the proposal.
This would only mean that the commission has the ability to legislate if the said action is more effective at the European level than the national, local, and regional level. If it is for the greater good of all, then it is important to implement the agreed objectives. Once the legislation of the commission is adopted, the commission will then make sure that the legislation will be correctly applied by its member countries.
The greater interest of the commission
The European Commission represents the best interest of the commission as a whole. It encompasses the new legislation of the European Union Council and the European Parliament. Furthermore, it ensures that the laws governing the European Commission will be strictly and correctly implemented by the member countries. The term commission pertains to the 28 commissioners and the institution as a whole.
The European Union is comprised by different countries and each of them is considered rich when it comes to economy and way of life. But it is not always a bed of roses for the member countries. As a matter of fact, about 200,000 companies across the European Union suffers bankruptcy or about to face bankruptcy on a yearly basis. This has led to about 1.7 million people risking their livelihood. There are a lot of things that should be done to make sure that the failing companies will be able to restructure at the earliest possible stage and be able to stay in the business.
The need for reform
It is a must to reform the national insolvency as it will be good for all concerned. It will protect and safeguard not only the businesses, but as well as the jobs. Furthermore, it will reduce the risk for investors, encourages cross border investment, and most importantly, it will improve the returns for creditors. How to achieve a consistent and stable system?
To come up with a more consistent system, the European Union recommends to the national governments to come up with the necessary measures that will help businesses to restructure at a very early stage. This is even more effective as compared with pushing the companies towards liquidation; although it is always the case.
What are the possible measures that would be greatly beneficial for the companies facing possible bankruptcy?
- To help the companies in restricting prior to court proceeding or any insolvency.
- To provide companies who are facing difficulties a breathing space of up to 4 months to fully adapt to the restricting plans prior to the creditor’s launching enforcement proceedings.
- To cancel the entrepreneurs debt within three years after the bankruptcy.