The European Commission makes annual country-specific reform recommendations to each member state to guide national policy regarding structural reform. The recommendations cover a wide range of issues, including public finances and structural reforms in areas such as taxation, pensions, public administration, services, and the labour market, especially youth unemployment. They offer bespoke policy advice based on a review of each member state's economic and social performance in the previous year and EU-wide priorities for employment and growth. The current country-specific recommendations adopted by the European Commission in May 2013 hope to move Europe beyond the crisis and strengthen the foundations for growth.

The extra "breathing space" allowed for certain member states to meet deficit-reduction obligations and boost growth was welcomed by MEPs during the joint economic affairs and employment committee debate with Commissioners Olli Rehn and László Andor. At the debate MEPs also expressed their reservations concerning the analysis and economic theories underlying austerity recommendations.

MEPs welcomed the fact that this year's recommendations grant France, Spain and Poland an extra two years, and Belgium, Netherlands and Portugal an extra year, to meet deficit-cutting requirements. Nevertheless, concern was expressed that the recommendations are much more rigorous for small member states than for larger ones and that member states receiving support, like Greece or Portugal, are made to forgo democracy in the economic decision-making process.

Some MEPs complained that the analysis and economic theories on which the Commission had based its prescription of austerity were fragmented or inadequate, and stressed the need for democratic decision making in order to secure popular support for reforms. Many MEPs expressed dissatisfaction that the European Parliament was not involved in the decision-making process and not adequately informed.

In March, Member States agreed on the five priorities proposed by the Commission for 2013: pursuing differentiated growth-friendly fiscal consolidation, restoring normal lending to the economy, promoting growth and competitiveness, tackling unemployment and the social consequences of the crisis and modernising public administration.

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