The report calls for a change in economic strategy to ensure that the focus is not only on fiscal consolidation but also on growth and employment friendly policies. The report calls for the creation of a European funding mechanism that will serve as an incentive for more convergence in the EU, to repair the damage caused by the austerity policies of the past few years.
The Commission finally accepts that growth and jobs should be at the heart of economic policy - rather than a narrow focus on fiscal discipline. It has also recognised that all EU countries have to engage in managing the crisis, not just countries in financial difficulty. Economic growth has not recovered and Europe is in danger of stagnation and deflation, as outlined in the recent independent Annual Growth Survey 2014.