Economic policy

In a review of how far member states implemented the EU's "broad economic policy guidelines" for 1999, the European Commission judged that progress was average to disappointing with wide variations of performance from country to country. The Commission said EU countries made good progress in consolidating public finances, developing the EU single market and adopting "active" labour market policies. It said the level of state aids, although falling, was "generally still too high", especially in Germany, Italy and Portugal. Implementation of single market legislation improved, although Greece, France, Ireland, Luxembourg and Portugal were singled out as laggards.

Public procurement rules were poorly implemented. Liberalisation of the railway, water and postal sectors was slow. Reform of unemployment benefit systems except in a few countries such as the UK - was modest and piecemeal, contributing to high unemployment. In addition, little had been done to dismantle rigid employment protection laws and excessive dismissal costs deterring staff recruitment in some member states. The Commission said there were "no substantial reforms" of German or Belgian benefit systems or of employment protection laws in Belgium, Germany and Italy. Employment protection in France "has been tightened slightly, if anything", it noted.