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THE COMMITTEE OF THE REGIONS



- points out that, in the process of reforming the Stability and Growth Pact, we should not neglect its main purpose, namely creating an economy with strong foundations for the prosperity of the citizens of the European Union, with more and better jobs;

- encourages the European Commission to seek an optimum combination of policies and instruments in order to minimise the impact of budget cuts in the main policy areas of the "Europe 2020" strategy;

- calls on the European Commission to seek solutions that raise European citizens' awareness of the European endeavour and help to enhance the democratic functioning of the European Union;

- urges the Member States to apply the principle of bottom-up compliance with the rules of the Stability and Growth Pact, incorporating the necessary budget discipline into national law by means of institutional changes where necessary;

- notes the failure to give proper consideration to the role of local and regional authorities both in shaping guidelines and in implementing budgets. The Committee recommends that it should play an assisting role in the European semester procedure, possibly by means of a response to the European Commission's annual progress report, to be discussed at the Spring Council. The objectives of economic policy coordination should be strengthened by ensuring a proportionate degree of regional and local authority participation, particularly for regions that enjoy legislative power in those areas.