President Barroso underlined that this was possible because all sides have gone the extra mile and said: "This is a good deal for Europe, for European citizens and for the European economy." He pointed to the main elements of the agreement: more flexibility on both payments and commitments, frontloading of expenditure linked to youth employment, research, education and SMEs as well as the possibility to increase the aid for most deprived people. He also stated that the deal confirms the agreement reached for the 2013 amending budget. He finally pointed out that the Compact for Growth discussed at today's European Council cannot exist without a fund for growth and concluded: "Our fund for growth is the European budget" and thanked the representatives of the other institutions for their true European spirit. The deal will now be submitted to the European Parliament and the Council for formal endorsement.
European Council
The European Council in Brussels this afternoon will discuss practical measures to get Europe growing again. President Barroso will call for a new consensus on how to combat youth unemployment and increase financing for the economy. President Barroso has put a number of ideas on the table and will call for an ambitious approach from the European Council on these issues.
Specifically, the Commission proposes that the €7 billion Youth Employment Initiative should be front loaded so that it is committed in 2014 and 2015 rather than over the seven-year period of the next budget.
One of the biggest obstacles to recovery is the lack of normal lending to the real economy, especially SMEs. The Commission believes that more can be done by working with the European Investment Bank, and President Barroso will put concrete ideas on the table on how to do this.
Having a business friendly environment is also an important part of the mix. The Commission has adopted a communication to address the Top 10 most burdensome pieces of EU legislation, as identified by SMEs. The communication details the action taken or to be taken to address each of them.
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