This week the European Parliament held a debate in advance of the preparatory meetings for this year's European Semester. The European Semester was set up in 2011 following the financial and economic crisis. It is based on the Europe 2020 strategy which member states have implemented into individual targets and policies. However, the European Commission feels that cooperation by all member states on such matters is necessary to achieve the desired results and further growth. As a result the European Semester was established. It is a six month process during which the Commission outlines the spending and economic priorities for the year ahead. It is therefore an annual cycle of economic policy coordination among member states.

As part of the European Semester the European Commission publishes an Annual Growth Survey (AGS) towards the end of each year. The AGS for 2013 consists of five priorities aimed at boosting growth and employment, following growth friendly fiscal consolidation, restoring normal lending to the economy, promoting growth and competitiveness for today and tomorrow, tackling unemployment and the social consequences of the crisis and finally modernising public administration. In addition, the AGS highlights the need to tackle youth unemployment which is rising in many member states across Europe. In March this AGS will be discussed by the European Council as the AGS is applicable to all EU member states. Country specific recommendations will then be presented, which member states must include in their national budgets. The recommendations can be go as far as affecting a member states taxes, labour market, unemployment benefits and social benefits such as pensions.

The European Parliament currently plays an advisory role in the European Semester process. During the debate held in the parliament this week it was concluded that the Parliament needs to have a greater say in identifying the priorities for the year ahead. The reason for this is to develop greater and more transparent democratic legitimacy and accountability. In order to achieve this it is important that the citizens of Europe have a clearer picture of the European Union and a better understanding as to why the proposed reforms are necessary. The way to reach citizens is through their national parliaments, but as was pointed out at the debate, national members of parliament are out of the loop when it comes to European issues as they are not debated in national parliaments. In addition, discussions on European issues generally take place in EU jargon, which is not understood by all citizens. It was therefore suggested that debates on European issues should be held simultaneously in the national parliaments of member states every two months. It was felt this would bring the European affairs closer to the citizen, as there are questions about whether austerity is the right solution to the crisis.

Addressing the European Parliament Olli Rehn presented the Commission policy priorities for the year ahead. They will be based on three steps: economic policy, growth and unemployment. In terms of economic policy, Mr Rehn expressed the need to continue the "eurozone rebalancing". Although this is beginning to happen, Europe must not isolate itself from the world economy. Currently some member states are loosing competitiveness; this can be seen from the increasing structural unemployment coupled with falling global market shares. It is therefore important for Europe to remain globally competitive; a particular emphasis was placed on the competitiveness of Europe's industry, manufacturing and services. To boost growth and create jobs more support is necessary in research and innovation. In addition, education and training is required to develop the labour market. Finally, greater fiscal consolidation is necessary.

These priority steps for the year ahead follow a similar line to the Blueprint towards deeper and genuine Economic and Monetary Union, which the Commission has already presented. This aims to restore confidence in Europe. Its outlines short, medium and long term plans to get Europe back on track. The medium to long term plans envisage treaty changes furthering integration.