Suggestions have been drawn by EU president Herman Von Rompuy together with European Commission president Manuel Barroso to improve each and every EU states’ competitiveness and develop more rigorous control on eurozone economies. We would actually see wage increase on this proposal which is linked to productivity and to profits of other businesses.
The draft is likely to land on the desks of EU’s 27 prime ministers over the weekend. This outline was made due to the constant pressure of the Germans for a better guideline set up for the EU states. Though this will only be a voluntary measure on which each state has the option to adopt it or not.
They made sure that every member’s concern is taken into consideration as they have made this proposal not enforceable to every state. This is an effort to overcome Netherland’s opposition to what they see as the EU having powers that should only be the coming from each member states.
The proposal will also deal with minimum rates for corporate tax, increase in retirement age and pensions. This will be discussed by the eurozone leaders at their March 11 special summit.
There will be no sanctions for countries that will not follow the targets but they believe that naming and putting them to shame will be sufficient enough to improve their performance.
