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145-539: The primary objective of the Just Transition Mechanism is to mitigate the worst socio-economic effects of the transition into a climate neutral economy, which can prove difficult for regions highly dependent on carbon-intensive industries. These areas usually count with lower GDP rates than the European average as well as certain degree of economic stagnation which makes them ever more vulnerable to

290-509: A base year. The result would be that the GDP in 2000 equals $ 300 million × 1 ⁄ 2 = $ 150 million , in 1990 monetary terms. We would see that the country's GDP had realistically increased 50 percent over that period, not 200 percent, as it might appear from the raw GDP data. The GDP adjusted for changes in money value in this way is called the real GDP . The factor used to convert GDP from current to constant values in this way

435-581: A central framework of processes within the EU socio-economic governance. The European Semester is a core component of the Economic and Monetary Union (EMU) and it annually aggregates different processes of control, surveillance and coordination of budgetary, fiscal, economic and social policies. It also offers a large space for discussions and interactions between the European institutions and Member States . As

580-682: A comparison with the Commission forecasts. Any differences will have to be explained and justified. The programme contains more precisely budgetary and fiscal assumptions for 3 years such as the planned deficit, the level of indebtedness and some macroeconomic scenarios. The commission publishes and sends to the Council its proposal of recommendation in view of the adoption of the Country-specific recommendations (CSRs). The documents contains policy guidelines for each country. It states

725-518: A country becomes increasingly in debt, and spends large amounts of income servicing this debt this will be reflected in a decreased GNI but not a decreased GDP. Similarly, if a country sells off its resources to entities outside their country this will also be reflected over time in decreased GNI, but not decreased GDP. This would make the use of GDP more attractive for politicians in countries with increasing national debt and decreasing assets. Gross national income (GNI) equals GDP plus income receipts from

870-521: A country's borders, but by an enterprise owned by somebody outside the country, counts as part of its GDP but not its GNI; on the other hand, production by an enterprise located outside the country, but owned by one of its citizens, counts as part of its GNI but not its GDP. For example, the GNI of the US is the value of output produced by American-owned firms, regardless of where the firms are located. Similarly, if

1015-650: A country's citizens at home and abroad rather than its "resident institutional units" (see OECD definition above). The switch from GNP to GDP in the United States occurred in 1991. The role that measurements of GDP played in World War II was crucial to the subsequent political acceptance of GDP values as indicators of national development and progress. A crucial role was played here by the U.S. Department of Commerce under Milton Gilbert where ideas from Kuznets were embedded into institutions . The history of

1160-406: A country's production has increased (or decreased, if the growth rate is negative) compared to the previous year, typically expressed as percentage change . The economic growth can be expressed as real GDP growth rate or real GDP per capita growth rate . GDP can be adjusted for population growth, also called Per-capita GDP or GDP per person . This measures the average production of a person in

1305-772: A crucial role in guiding nations toward sustainable energy sources. As per IRENA's Annual Review (2023), Europe collectively held 1.8 million jobs in the renewable energy sector, with approximately 1.6 million within the 27 member states of the European Union (EU-27). Notably, women constitute less than one-third (32%) of the renewable energy workforce. The issue arises from the Just Transition Mechanism's sectorial and territorial focus, favoring male-dominated sectors and neglecting those where women are disproportionately represented, often characterized by low wages and job insecurity. This trend threatens to reinforce existing gender segregation and other disparities within these sectors and

1450-635: A detailed analysis of the challenges their economy face, as well as policy suggestions for tackling these challenges. The reports are also intended to provide the basis for a dialogue between the Member States and the European Commission under the form of bilateral meetings which follow their release. The country reports are important for States in view of the preparation of their National Reform Programmes as well as their Stability or Convergence Programmes. The European Council discusses

1595-404: A gender lens highlight the importance of seeing women as not a homogeneous group. According to an intersectional perspective, the groups most likely to be left behind are those whose marginalization and disadvantage cross over in multiple ways, strengthening one another. The discourse surrounding the concept of a Just Transition has brought increased attention to the notion of gender mainstreaming,

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1740-560: A gradual inclusion of social, economic, and employment objectives and it is governed by mainly three pillars which are a combination of hard and soft law due a mix of surveillance mechanisms and possible sanctions with coordination processes. The main objectives of the European Semester are noted as: contributing to ensuring convergence and stability in the EU; contributing to ensuring sound public finances; fostering economic growth; preventing excessive macroeconomic imbalances in

1885-615: A just and fair transition in the European context Even though gender equality and the Just Transition are top priorities for the European Commission, the degree to which the European Green Deal and the Just Transition Mechanism foster a “just” and “socially fair” transition has been subject to scrutiny. Scholars and civil society organizations argue that the European Green Deal has paid little attention to gender, often characterizing it as “gender-blind” and arguing that

2030-488: A just transition to a low-carbon economy, emphasizing the need to shift away from supporting traditional energy sources and towards embracing a just transition that prioritizes renewable energy . The Territorial Just Transition Plans assess the territories and projects where the Just Transition Funds will be allocated, as well as constituting one of the prerequisites to access funding. A study has found that

2175-621: A just transition. A study on the TJTP process in Sweden revealed the existence of a risk of sidelining already marginalized actors in favor of industrial interests. The results of the study suggest the Just Transition Mechanism, and the Just Transition Fund in particular, may focus too heavily on compensating the industry for the losses it may incur as a result of the energy transition, potentially overlooking broader societal issues. In

2320-584: A key tool of the NextGenerationEU Plan , the Recovery and Resilience Facility emerged as a financial support for member states through loans and grants. The European Council decided to use some of the existing EU macro-economic instruments to facilitate the implementation and the management of the Recovery and Resilience Facility, notably the EU budget but also the European Semester. Consequently,

2465-401: A low-carbon economy lies in the current financial support for fossil fuels . Critics argue that establishing just transition funds will inadvertently lead to the indefinite subsidizing of the fossil fuel industry. To address this issue and effectively achieve the EU's Energy & Climate 2030 and 2050 targets, experts call for a proactive policy overhaul and a re-allocation of finances to ensure

2610-424: A network of environmental NGOs operating Central and Eastern Europe -, which argues these plans do not reflect the potential needs of the regions in question. Recent research has highlighted the lack of sufficient funding for the Just Transition Fund in order to meet the EU's 2030 and 2050 climate goals. Critics believe that the 17.5 billion euros of the Just Transition Fund and the overall 55 billion euros comprising

2755-673: A rapid erosion of public support for the EU , a significant re-balancing between social, economic, and employment objectives has been visible in the policy orientation of successive European Semesters. In the 2017 European Commission’s reflection paper on deepening the Economic and Monetary Union , the European Commission suggested that the Semester could be further reinforced by fostering cooperation and dialogue among member states at different levels to ensure and encourage stronger domestic implementation of reforms. It's

2900-592: A recurrent cycle of budgetary cooperation among the EU Member States, it runs from November to June and is preceded in each country by a national semester running from July to October in which the recommendations introduced by the Commission and approved by the Council are to be adopted by national parliaments and construed into national legislation. The European Semester has evolved over the years with

3045-579: A single overarching framework: the European Semester. Before 2010, the European economic governance consisted of 2 pillars: the budgetary surveillance since the adoption of the Stability and Growth Pact (SGP) in 1997 and the socio-economic coordination initiated by the Lisbon Strategy in the early 2000. Since the Eurozone crisis , the economic dimension of the Economic and Monetary Union (EMU)

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3190-474: A special report by the European Court of Auditors on gender mainstreaming within the EU budget has played a pivotal role in bringing attention to the Commission's shortcomings in meeting its commitments. The report served as a critical assessment, revealing that the Commission had not lived up to its promises. Gross domestic product Gross domestic product ( GDP ) is a monetary measure of

3335-408: A study by Alexandris Polomarkakis, it was discovered that market-driven objectives often overshadow social considerations. Another aspect of the policy that is being scrutinized by scholars is the disproportionate focus of the policy on the technical and technological aspects, at the expanse of the potential social impacts of the transition. This criticism is also in line with CEE Bankwatch Network -

3480-544: A substantial definition of what constitutes a just transition for individuals rather than corporations. Lastly, the Bankwatch Network argues that industrial actors' interests are hidden behind the promise of employment, but frequently, these projects fall short of generating the number of jobs they assert. The NGO explains that the expense incurred in creating these jobs often surpasses that in other sectors, attributing these facts to an effort by companies to sidestep

3625-411: A term initially introduced during the 1995 Beijing Conference . To achieve a future that is both “gender-just and climate-just”, Allwood (2020) emphasizes the necessity of not only analyzing the relationship between gender equality policy and climate policy but also exploring the interplay between gender mainstreaming and climate mainstreaming. Emphasizing the importance of alignment with these objectives,

3770-496: A €7.5 billion budget line. In May of the same year, the Commission tabled yet another proposal, increasing Just Transitions Fund budget from €7.5 billion to €40 billion. The initial size of the Just Transition Fund raised some doubts about its capacity to address the objectives of the just transition. However, the final sum was set to €17.5 billion in 2021, mainly due to the Frugal Four’s opposition to increasing their contributions to

3915-467: Is US$ 5,040,107.75 (in a million). Predictably, as a developed country, Japan has a higher GNI (by 182,779.46, in millions of USD), which is indicative that the production level in the country is higher than that of national production. On the other hand, the case with Armenia is the opposite, with GDP being lower than GNI by US$ 196.12 (in million). This demonstrates that countries receive investments and foreign aid from abroad. The Total income divided by

4060-420: Is a well-known fact that traditional gender norms are extremely strong in the coal-mining industry/mining communities, benign women primarily confined to domestic duties. The study showed that the decline and closure of mining had extensive psychological and physical health effects on women such as increased domestic violence and a double-burden for women as they needed to look for low skilled jobs to compensate for

4205-541: Is also seen as an opportunity for the European Semester to become more effective, as this process makes the soft governance dimension of the European Semester harder. In sum, in 2022, the European Semester is to provide its economic and employment policy scope while adapting to the Recovery and Resilience Facility. With the EU’s strategy of competitive sustainability, further shifting of economic policy coordination has taken place in line with COVID-19 crisis challenges. This shift

4350-425: Is also sometimes expressed as: The third way to estimate GDP is to calculate the sum of the final uses of goods and services (all uses except intermediate consumption) measured in purchasers' prices. Market goods that are produced are purchased by someone. In the case where a good is produced and unsold, the standard accounting convention is that the producer has bought the good from themselves. Therefore, measuring

4495-558: Is available for almost every country in the world, allowing inter-country comparisons. It is measured consistently in that the technical definition of GDP is relatively consistent among countries. GDP does not include several factors that influence the standard of living. In particular, it fails to account for: The European Semester The European Semester of the European Union was established in 2010 as an annual cycle of economic and fiscal policy coordination. It provides

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4640-518: Is calculated as the difference between public spending and the potential GDP growth. Indeed, Regulation (EU) n°1175/2011 amending one of the two regulation constituting the Stability and Growth Pact states that the MTO shall be between -0,5% of the GDP and the equilibrium or exceeding it . All the Member states that haven't reach a certain reference rate of public spending (deficit) based on GDP growth in

4785-838: Is calculated this way it is sometimes called gross domestic income (GDI), or GDP (I). GDI should provide the same amount as the expenditure method described later. By definition, GDI is equal to GDP. In practice, however, measurement errors will make the two figures slightly off when reported by national statistical agencies. This method measures GDP by adding incomes that firms pay households for factors of production they hire – wages for labour, interest for capital, rent for land and profits for entrepreneurship. The US "National Income and Product Accounts" divide incomes into five categories: These five income components sum to net domestic income at factor cost. Two adjustments must be made to get GDP: Total income can be subdivided according to various schemes, leading to various formulae for GDP measured by

4930-474: Is called the GDP deflator . Unlike consumer price index , which measures inflation or deflation in the price of household consumer goods, the GDP deflator measures changes in the prices of all domestically produced goods and services in an economy including investment goods and government services, as well as household consumption goods. Real GDP can be used to calculate the GDP growth rate, which indicates how much

5075-473: Is contributed at each stage of production. This approach mirrors the OECD (Organisation for Economic Co-operation and Development) definition given above. Gross value added = gross value of output – value of intermediate consumption. Value of output = value of the total sales of goods and services plus the value of changes in the inventory. The sum of the gross value added in the various economic activities

5220-489: Is important to note that, despite this achievement, Greece ranks lowest on the Global Gender Gap Index in 2023, coming behind Romania, Cyprus, and Hungary. This stark contrast emphasizes the necessity of a JTM that not only addresses environmental concerns but also ensures equitable social and gender outcomes. It highlights the complex interplay between environmental policies and social dynamics, emphasizing

5365-404: Is known as "GDP at factor cost". GDP at factor cost plus indirect taxes less subsidies on products = "GDP at producer price". For measuring the output of domestic product, economic activities (i.e. industries) are classified into various sectors. After classifying economic activities, the output of each sector is calculated by any of the following two methods: The value of output of all sectors

5510-587: Is that GDP defines its scope according to location, while GNI defines its scope according to ownership. In a global context, world GDP and world GNI are, therefore, equivalent terms. GDP is a product produced within a country's borders; GNI is product produced by enterprises owned by a country's citizens. The two would be the same if all of the productive enterprises in a country were owned by its own citizens and those citizens did not own productive enterprises in any other countries. In practice, however, foreign ownership makes GDP and GNI non-identical. Production within

5655-414: Is the broader one and the more sensitive for the Member States (mainly because of its social component) and deals with soft law. This pillar under the European semester framework aims at ensuring the surveillance and preventing the apparition of budgetary imbalances. In case of imbalances, corrective measures are taken. The legislative acts and treaties under this pillar are the following: Article 126 of

5800-575: Is the one that concerns the capacity of subnational actors, regional and local authorities, as well as their contributing role in policy formulation. Critics argue that the European Commission's approach to a just transition, with its Just Transition Mechanism (JTM), is inadequate for achieving social justice and overall well-being. (Heffernan, 2022) The narrow focus on equipping workers with green economy skills overlooks broader distributive justice concerns within climate policies, as well as wider issues related to social protection and inclusion. Scholars argue

5945-453: Is then added to get the gross value of output at factor cost. Subtracting each sector's intermediate consumption from gross output value gives the GVA (=GDP) at factor cost. Adding indirect tax minus subsidies to GVA (GDP) at factor cost gives the "GVA (GDP) at producer prices". The second way of estimating GDP is to use "the sum of primary incomes distributed by resident producer units". If GDP

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6090-505: The Commission can launch an investigation in a Member State that can lead to sanctions. For example, Spain got fiscal sanctions under that procedure because of the Autonomous Community of Valencia that had misrepresented its statistics. This pillar aims at monitoring and preventing the emergence of macroeconomic imbalances . In its annual Alert Mechanism Report, the Commission gives an assessment for each country on

6235-624: The Commission to other European institutions : the Council , the European Central Bank , the European Parliament and to the European Economic and social committee . This report marks the beginning of the annual cycle of the macroeconomic imbalance procedure (MIP) in identifying and addressing the risks of macroeconomic imbalances in accordance with articles 3 and 4 of Regulation (EU) No 1176/2011 on

6380-495: The Council will recommend measures that the States shall take and the Commission will be in charge of closely monitoring their implementation. If there is no improvement, the Commission can publish a recommendation that publicly recognizes the non-compliance with the corrective measures. This will be automatically adopted by the Council unless a qualified majority of Member States oppose to it. The Commission may also recommend to

6525-445: The Council : It gives a detailed project of economic reforms that each country will implement. It also contains all the reforms the country has taken (and will take) to address the country recommendations of the previous years or simply the reforms that the country has taken regarding its own situation. This document contains also specific policies that the country will implement in order to strengthen employment and growth. Furthermore,

6670-503: The EU member states ’ economic policies were coordinated separately and yet the member states’ economies were (and still are) closely interdependent under the Economic and Monetary Union. Therefore, the countries found it appropriate to coordinate their economic policy procedures under a common time-based framework as well as to facilitate and harmonize their national budgetary, growth and employment policy goals, while taking into consideration various EU set of targets. The European Semester

6815-717: The European Union Emission Trading System to include the concept of Just Transition. According to Mr. Martin’s proposal, 2% of the ETS revenue would be employed to fund worker reskill programs in the face of the green transition. The proposal failed due to lack of support from the European Commission and the Council of the European Union . In 2017, the Commission launched the Coal Regions in Transition (CRIT) platform, designed to facilitate

6960-480: The European Union member states regarding their fiscal and economic policies. It is embedded in the architecture of the Economic and Monetary Union of the European Union and was created after the Financial crisis of 2007–08 and the Eurozone crisis . These international economic crisis deeply affected the EU member states and demonstrated the need for an enhanced economic and fiscal governance. Prior to 2010,

7105-617: The Human Development Index or Better Life Index , as better approaches to measuring the effect of the economy on human development and well being . William Petty came up with a concept of GDP, to calculate the tax burden , and argue landlords were unfairly taxed during warfare between the Dutch and the English between 1652 and 1674. Charles Davenant developed the method further in 1695. The modern concept of GDP

7250-427: The Stability and Growth Pact ). The Medium-term objective (MTO) is the deficit taken in a broader period of time and that is not subjected to economic cycles effects and budgetary short-term measures. The MTO is an important parameter taken into account by the Commission during its assessment of the budgetary situation of a Member State. The MTO must lead to an equilibrium of the deficits of each Member State and

7395-466: The Stability and Growth Pact ). Furthermore, Regulation n°472/2013 in its article 6 states that if a Member State requests financial assistance, an evaluation shall be made on the sustainability of its government debt. In case of an excessive deficit, a deviation from the MTO or from the adjustment path, the Commission can activate the corrective phase of the SGP and recommend during the European semester

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7540-470: The Treaty on the functioning of the European Union prohibits excessive deficits. Besides, the protocol n°12 states 3% of the GDP as maximum . The multilateral surveillance is a part since 2011 of the European Semester. Therefore, each Member State has to give to the Commission and the Council in its stability programme all the information concerning its deficit ratio (article 3 of Regulation n°1466/97 of

7685-485: The market value of all the final goods and services produced and rendered in a specific time period by a country or countries. GDP is often used to measure the economic health of a country or region. Several national and international economic organizations maintain definitions of GDP, such as the OECD and the International Monetary Fund . The ratio of GDP to the total population of

7830-401: The 2020 Annual Sustainable Growth Strategy, there was a tremendous shift of priorities which stressed the transition towards a sustainable and inclusive economy, technological progress, sustainable solutions and demographic changes. Indeed, the 2020 Strategy has four dimensions; environmental sustainability, productivity gains, fairness and macroeconomic stability. It is a report addressed from

7975-655: The AGS priorities focused on fiscal consolidation, tackling unemployment and the social consequences of the crisis as well as modernizing public administration. From 2015-2018, the focus shifted to boosting investment, pursuing structural reforms, and responsible fiscal policies. Furthermore, in 2019, the priorities stressed that policy efforts at national level should focus on delivering high-quality investment and reforms which increase productivity growth, inclusiveness and institutional capacity, while continuing to ensure macro-financial stability and sound public finances. Finally, in

8120-540: The CSRs is done by Country Teams which are led by the Secretariat-General of the European Commission with contributions from desk officers and several responsible from relevant Directorate-Generals of the European Commission . It has to follow a deliberative and evidence-based process. At the national level, the European Commission engages European Semester Officers (ESOs) who are economic policy experts with

8265-411: The Commission overlooks certain highly carbon intensive “NUTS 3” regions because they fall within a “NUTS 2” region not considered highly carbon intensive. This implies that the allocation methodology may unfairly disadvantage certain countries, resulting in them receiving less funding than they require. Another criticism made in the literature is that the major challenge in achieving a just transition to

8410-544: The Commission's reluctance to impose further constraints ono the EU budget . The Just Transition Fund was launched in 2021, as part of the Next Generation EU program. Regardless, it experienced several hurdles during its implementation. Initially, Eastern Member States proposed delaying implementation of the EU's green agenda to focus instead on the economic repercussions of the Covid‐19 pandemic . Additionally,

8555-517: The Council the imposition of sanctions, the conditions of which are detailed in Article 4 of Regulation n°1174/2011 . In 2018, 12 countries were subjected to an in-depth review from the Commission because they faced macroeconomic imbalances: Bulgaria, Croatia, Cyprus, France, Germany, Ireland, Italy, the Netherlands, Portugal, Slovenia, Spain and Sweden. Socio-economic coordination relates to

8700-656: The Country Specific Recommendations and the National Reforms Programmes, facilitating the elaboration of plans in order to assess the reform trajectories. In addition, the European Semester timeline will be used to facilitate the exchange of information among the different actors along the process. Although the use of the European Semester as the tool for the Covid-crisis Recovery plan faces criticism, it

8845-460: The EU as a whole. Meanwhile Eastern European countries favoured a less ambitious framing that would take into consideration the national circumstances of each Member State, their degree of technological development and their respective capacity to implement the Union’s 2030 and 2050 climate objectives. In January 2020, the Commission tabled its initial proposal for the Just Transition Fund, consisting of

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8990-490: The EU budget. The Just Transition Mechanism comprises €55 billion, to be invested over the 2021-2027 period. It is organized around three different budget lines, namely the Just Transition Fund (JTF), Invest EU and the Public Sector Loan Facility. The Just Transition Fund counts €20.28 billion in grants for the period 2021-2017. This sum will be invested in the regions and territories most affected by

9135-400: The EU, national and regional level. Despite the acknowledgement by the Commission of the importance of an active social dialogue and the recognition that a successful transition requires policies designed with citizen involvement, NGOs and citizens were excluded from the formulation process. Several studies on the Just Transition Mechanism have showed that one of the most undervalued criticisms

9280-489: The EU; and implementing the Europe 2020 strategy. However, the rate of the implementation of the recommendations adopted during the European Semester has been disappointing and has gradually declined since its initiation in 2011 which has led to an increase in the debate/criticism towards the effectiveness of the European Semester. The European Semester was initiated in 2010 with the aim of providing better coordination between

9425-464: The EU’s 2050 climate objectives and the Commission's approval of Territorial Just Transition Plans submitted by the Member States. Another point of contention was the discrepancies between Western and Eastern Member States regarding the framing of the EU’s climate-neutrality objectives. A group of countries including Sweden, Austria, Luxembourg, Denmark and Spain wanted to apply the climate neutrality target to each Member State individually and not just to

9570-808: The Economic Policy Committee (EPC), the Employment Committee (EMCO), and the Social Protection Committee (SPC) discusses and debates the draft of the country-specific recommendations, which are in turn discussed and endorsed by the European Council . Finally, in July, the Council formally adopts the country-specific recommendations, and the member states are supposed to take these recommendations into account in their national decision-making and in

9715-450: The European Commission , Directorate-General for Economic and Financial Affairs , Directorate-General for Employment, Social Affairs and Inclusion , Directorate-General for Taxation and Customs Union for discussion and finally to the college of commissioners for approval. In June, the Council of the EU in its different formations such as Employment, Social Policy, Health and Consumer Affairs Council (EPSCO) and advisory bodies such as

9860-425: The European Semester also has a hard law component. Within hard law, the processes of budgetary as well as macroeconomic assessments and recommendations mentioned as legally engaging States in regulations or in treaties, must be observed. That means that States can be subjected to sanctions in case of non-compliance. The first and the second pillars of the European Semester form the hard law component. The third pillar

10005-472: The European Semester became “the main institutional vehicle” for the Recovery and Resilience Facility, and they now encompass each other. The Recovery and Resilience Facility requires from the member states, for the use of the financial support, plans and strategies with reforms and public investment projects. The main European Semester’s tools used to integrate the Recovery and Resilience Facility are

10150-550: The European Semester widened with the announcement by the European Parliament , the Council and the European Commission of the implementation of a social dimension within the third pillar, through the European Pillar of Social Right . In 2020, with the outbreak of the COVID-19 crisis , the European Semester requirements were simplified. During the 2020 round of the European Semester, the main steps basically remained

10295-751: The European Union’s 2050 climate objectives and the Commission's approval of the individual Territorial Just Transition Plans drafted by the Member States through the European Semester Framework . Each Territorial Just Transition Plan will detail the national strategies for transitioning into a more sustainable economy, identifying the regions and communities most affected by the phase out of high-carbon industries. These plans include measures for economic diversification, job creation, retraining programs for workers, infrastructure development for clean energy, and other projects that will facilitate

10440-712: The Guidelines for the Employment Policies of each country. Furthermore, the States are monitored by a scoreboard of indicators set up in the European Pillar of Social Rights ( Council decision 2018/1215 of 16 July 2018 ). It's a draft recommendation made by the Commission in view of the Council recommendation. The document prescribes measures that the Eurozone Member States have to implement in order to tackle critical issues for

10585-489: The Just Transition Mechanism are inadequate to cover the social costs associated with the transition toward climate neutrality. The Bankwatch Network (2021) argues that the Just Transition Fund is minuscule- between 1% and 3%- to effectively support the transition of these regions. The primary beneficiaries are anticipated to be Germany, Poland, and Romania, while Estonia, Bulgaria, and the Czech Republic will experience

10730-423: The Just Transition Mechanism. However, studies indicate that the combination of climate change and environmental decline, particularly extensive pollution, will exacerbate challenges faced by healthcare systems, compounding the demands from an aging population in Europe. Additionally, education plays a vital role in achieving long-term sustainability, underscoring the importance of incorporating women in all aspects of

10875-494: The access to the recovery funds to the establishment of a conditionality clause regarding the promotion of rule of law, fiscal discipline, and the achievement sustainable development goals. This drove them to clash with countries such as Hungary and Poland, who proceeded to veto the post‐pandemic recovery programme and the EU Multiannual Financial Framework , hijacking in the process the approval of

11020-427: The accounting year. ) So for example if a car manufacturer buys auto parts , assembles the car and sells it, only the final car sold is counted towards the GDP. Meanwhile, if a person buys replacement auto parts to install them on their car, those are counted towards the GDP. According to the U.S. Bureau of Economic Analysis, which is responsible for calculating the national accounts in the United States, "In general,

11165-569: The adoption of the Euro . Moreover, the 60% criterion was taken over in the Protocol on the procedure regarding excessive deficits attached to the Lisbon Treaty (article 1). For the multilateral surveillance, each Member State has to give to the Commission and the Council in its stability programme all the information concerning its indebtedness ratio (article 3 of Regulation n°1466/97 of

11310-401: The basis of its economic and financial situation using different indicators. There are two types of indicators: The countries that are facing (or that may face) macroeconomic imbalances are subjected to an in-depth analysis that can lead to the opening of an excessive macroeconomic imbalance procedure. If a Member State has seen an excessive macroeconomic imbalance procedure launched against it,

11455-412: The broader labor market. Advocates for a just transition to a well-being economy argue for the adoption of an ecofeminist approach to policymaking. This approach emphasizes sustainable jobs not only in terms of employment but also in contributing to overall well-being. Unfortunately, sectors with a significant representation of women, such as healthcare and services, are often disregarded in the context of

11600-425: The carbon intensity of a country’s “ NUTS 2 ” regions, which measures greenhouse gas emissions using "NUTS 2" data, as well as data related to employment and production in industrial sectors. However, concerns have been raised about the instability and high correlation of the data. The point made by scholars is that “NUTS 3" areas that are significant contributors to carbon emissions and require financial support during

11745-540: The concept of GDP should be distinguished from the history of changes in many ways of estimating it. The value added by firms is relatively easy to calculate from their accounts, but the value added by the public sector , by financial industries, and by intangible asset creation is more complex. These activities are increasingly important in developed economies, and the international conventions governing their estimation and their inclusion or exclusion in GDP regularly change in an attempt to keep up with industrial advances. In

11890-407: The concepts of “climate justice” and “gender justice” may be constrained within its framework. Some studies are even calling for a reconceptualization of the European Green Deal, or even a “feminist European Green Deal”, suggesting the need to shift its focus from being a “growth strategy” primarily concerned with expanding the economy to a genuine well-being policy centered on nurturing both people and

12035-444: The context of the Just Transition Mechanism, understanding these broader social disparities and gender dynamics is crucial for evaluating the effectiveness and fairness of the proposed transition policies. It emphasizes the need for a comprehensive approach that addresses not only environmental concerns but also social and gender inequalities. This perspective further underscores the challenges and complexities that arise when implementing

12180-413: The coordination of national and European socio-economic policies with the objective of promoting growth and jobs. The 2011 European Semester was dominated by the pursuit of fiscal consolidation and macroeconomic austerity with limited concern for social cohesion and inclusion goals. However, as the sovereign debt crisis within the Eurozone morphed into a broader economic and employment crisis, leading to

12325-401: The country. GDP per capita is often used as an indicator of living standards. The major advantage of GDP per capita as an indicator of the standard of living is that it is measured frequently, widely, and consistently. It is measured frequently in that most countries provide information on GDP every quarter, allowing trends to be seen quickly. It is measured widely in that some measure of GDP

12470-490: The deadlock at the Next Generation EU negotiations further complicated the fund's deployment. One of the main points of contention during the negotiation was the opposition of the Frugal Four to the issuing of so called " corona bonds " and grants; preferring the use of loans instead. A tentative agreement was reached in the Council on July 17, 2020. Regardless, some issues still persisted. The Frugal Four demanded to link

12615-420: The document the orientation and the objectives of its budgetary policies for 3 years. The document should demonstrate how the country is in the path in reaching its Medium-Term Objective (MTO) and how it will prevent and correct its macroeconomic/budgetary imbalances. The stability programmes must contain macroeconomic forecasts that are provided by an independent authority and that will be reviewed and subjected to

12760-574: The economic policy of the euro area on the basis of the Commission 's recommendation. The Council also adopts conclusions on the Alert Mechanism Report and on the Annual Growth Survey. During these 2 months, the national parliament of each Member State adopts its budget. At the end of the month, the Commission publishes its Country reports. The reports underline for each State the economic situation and forecasts,

12905-418: The economic situation of the countries of the EU . It endorses the AGS and lists the broad economic priorities that need to be adopted by the member states. These guidelines allow Member States to develop their stability programs (for euro area members) or convergence programs (for non-euro area members states) and their national reform programmes. Each member state sends two documents to the Commission and

13050-447: The energy transition may face exclusion from their otherwise intended Just Transition Fund allocations. When applying the Just Transition Fund criteria to pinpoint regions with 'high carbon intensity' at both the “NUTS 2” and “NUTS 3” levels, studies found that 40 percent of the “NUTS 3” regions identified as having high carbon intensity were not part of the “NUTS 2” regions identified with the same characteristics. The current calculation by

13195-478: The energy transition of coal mining areas. In 2018, Jerzy Buzek , former Polish Prime Minister and member of the European People’s Party Group at the European parliament, tabled a proposal for the creation of a “Just Energy Transition Fund”. This initiative consisted of a €4.8 billion fund aimed at supporting the energy transition of coal mining areas. This proposal never materialized into law due to

13340-616: The fossil fuel industry. In their working paper argue that in mining communities, women often find it challenging to break away from established gender norms. They may encounter pressure to engage in paid work when family incomes decrease, all while managing household and caregiving responsibilities. A publication by the Stockholm Environment Institute (SEI) assessed the distributional effects of past mine closures and declines, aiming to provide insights for ongoing and future planning related to energy transitions. It

13485-452: The functioning of the Single currency area. The opinion assesses the conformity of the draft budgetary plan of each Member state in line with the fiscal and budgetary rules (first pillar). It also gives an overview of the implementation of each State regarding the Country-specific recommendation (CSRs) addressed during the former European semester. The Council adopts the recommendations on

13630-418: The green transition. These loans and grants are only accessible by legal entities established under the public or private law regimes of the different Member States; on the condition that their investment projects contribute to addressing the social, economic and environmental challenges deriving from the implementation of the Union’s 2030 climate and energy targets. In Sarkki et al. (2022), the study discusses

13775-440: The highest aid intensity per capita. The skeptical viewpoint presented by Theisen (2020) suggests that the Just Transition Fund may serve as a tool for the European Commission to secure political support from Eastern member states for the EU's Climate Law and 2050 carbon neutrality. Criticisms also involve the allocation of the funds and the eligibility criteria set by the Commission. The Commission's approach relies on two criteria:

13920-454: The imperative for a holistic approach to transition strategies. Schollars argue that approaching climate change through a gendered lens involves more than directing attention solely towards women. Women constitute a diverse group, and gender disparities intersect with various structural inequalities such as class, ethnicity, nationality, health, sexual orientation, age, and geographical location. Several studies that examine climate change through

14065-553: The income approach. A common one is: The sum of COE , GOS and GMI is called total factor income; it is the income of all of the factors of production in society. It measures the value of GDP at factor (basic) prices. The difference between basic prices and final prices (those used in the expenditure calculation) is the total taxes and subsidies that the government has levied or paid on that production. So adding taxes less subsidies on production and imports converts GDP(I) at factor cost to GDP(I) at final prices. Total factor income

14210-443: The information required (especially information on expenditure and production by governments). The raw GDP figure as given by the equations above is called the nominal, historical, or current GDP. When one compares GDP figures from one year to another, it is desirable to compensate for changes in the value of money—for the effects of inflation or deflation. To make it more meaningful for year-to-year comparisons, it may be multiplied by

14355-684: The international market. Total GDP can also be broken down into the contribution of each industry or sector of the economy. GDP is often used as a metric for international comparisons as well as a broad measure of economic progress . It is often considered to be the world's most powerful statistical indicator of national development and progress. However, critics of the growth imperative often argue that GDP measures were never intended to measure progress, and leave out key other externalities , such as resource extraction , environmental impact and unpaid domestic work . Alternative economic indicators such as doughnut economics use other measures, such as

14500-479: The key challenge that the economy is facing which can lead to macroeconomic, financial and budgetary imbalances as well as defining long-term economic and social objectives for Europe. The annual growth survey is based on the progress towards the Europe 2020 targets, the macroeconomic report analyzing the EU economic situation and the joint employment report. The AGS priorities have evolved overtime: From 2011 to 2014,

14645-572: The lost family income. The areas that rank the worst on gender equality coincide with those that are the focus of Just Transition Mechanism. In the first place, the primary effects of job losses connected to coal phaseout will be felt in Poland's vast coal-mining regions, Greece, Bulgaria, and Romania. According to the Gender Equality Index, Romania, Greece and Poland rank last when it comes to gender equality among EU27. This demonstrates

14790-509: The macroeconomic, fiscal and budgetary reforms that need to be taken or the way of addressing challenges. These recommendations need to be followed and implemented by the Member States. The CSRs are drafted after a thorough assessment of the progress made from the previous year's CSRs, and a detailed analysis of the National Reform Programmes and Stability or Convergence Programmes. The initial preparation and drafting of

14935-470: The medium term (unique to each Member State based on projections) have to follow a trajectory of adjustment defined by the Commission and the Council . The maximum of 60% of indebtedness relative to the GDP of each Member State was first inserted in the Protocol on the excessive deficit procedure of the Maastricht Treaty (article 1) in order to prepare the convergence of the States towards

15080-558: The most important period of the semester if we take into account the five documents that are produced: the Annual Growth Survey; the Alert Mechanism Report; the Joint Employment Report; the Commission’s recommendation for the euro area; and the Commission’s opinions on draft budgetary plans. The European semester begins with the submission from the Eurozone Member States of their draft budgetary plans. This also marks

15225-414: The most recent trends in terms of economic and social policies and establishes the general economic and social priorities for the EU. It also provides the Member States with policy guidance for the upcoming year. The Commission gives in the document an overview of the state of the European economy and looks at what has been accomplished in the past years in terms of growth, jobs and investment. It also gives

15370-525: The necessary funds to pursue the EU’s climate objectives. In the context of the Just Transition Fund, the Frugal Four pushed for the establishment of monitoring and reporting mechanisms to ensure a transparent use of these funds; questioning the readiness of Eastern and Southern European countries to comply with EU standards. This was translated into policy by linking access to the Just Transition Fund to two key conditions: Member States' adherencethe to

15515-561: The next year’s national budget. All CSRs adopted in the context of the European Semester since 2011 are registered in the CSR database, which is the main tool for recording and monitoring each member state's annual progress with the implementation of CSRs. In response to the Covid-19 crisis , the EU adapted its socio-economic governance and decided to provide financial support to all member states in order to help them recover. In that context, as

15660-519: The opening of an excessive deficit procedure . The council automatically adopts the recommendation against a Eurozone Member State unless a qualified majority of the States oppose to it (reversed qualified majority) following the procedure stated in the Fiscal compact. For the Non-Euro Members, the council has to agree on the Commission 's recommendation with a qualified majority of

15805-533: The overall situation of the employment, the social priorities and the economic stability inside the European Union. It also delivers overall recommendations for the Eurozone and a specific opinion on the draft budgetary plans of the Eurozone countries. The AGS is a communication from the Commission to the other European institutions . It is a comprehensive document of the Autumn Package which analyses

15950-594: The paradox of the "equity illusion" in the context of the Just Transition Mechanism. It emphasizes the importance of placing marginalized groups at the center of discussions, particularly in connection to social rights policies. The main criticism being made is that affirmative action policies, including the European Green Deal and the Just Transition Mechanism, may serve the interests of policymakers and existing industrial concerns rather than promoting societal transformation. Some critics view these initiatives as potential " greenwashing " that prioritizes industrial interests over

16095-466: The planet. A key critique of the Just Transition Mechanism and the distribution of funds is target specific industries characterized by a male dominated workforce. The World Resources Institute underscores the potential for the shift to renewable energy to create 18 million jobs globally by 2030, but this transition is anticipated to result in the loss of around 6 million jobs in high-carbon sectors. The International Renewable Energy Agency (IRENA) plays

16240-539: The policy focuses too much of its attention on unemployment policies rather than social protection. Critics contend that the EU's strategy for the transition does not align with the International Labour Organization (ILO) Guidelines, which stress the importance of integrating territorial/sectorial policies and social investment policies into a robust social protection system that ensures social rights for all citizens. They argue that it lacks

16385-427: The polluter pays principle, seeking public funds to meet their environmental restoration obligations.. Social disparities in Europe are varied, encompassing differences in income, gender, ethnicity, age, and various social classifications. Approximately 20% of the EU population (109 million people) experience poverty or social exclusion, with uneven distribution across regions. The 2023 Gender Equality Index focuses on

16530-463: The population is the Per capita income . The international standard for measuring GDP is contained in the book System of National Accounts (2008), which was prepared by representatives of the International Monetary Fund , European Union , Organisation for Economic Co-operation and Development , United Nations and World Bank . The publication is normally referred to as SNA2008 to distinguish it from

16675-471: The prevention and correction of macroeconomic imbalances. Several indicators are used in order to determine the countries that need an in-depth review (IDR) because of the macroeconomic risk they face or may face. This report is mandated by article 140 of the Treaty on the functioning of the EU . This document outlines the important social and employment achievements or developments in the EU . It also gives actions that were taken by Member States in line with

16820-430: The previous edition published in 1993 (SNA93) or 1968 (called SNA68) SNA2008 provides a set of rules and procedures for the measurement of national accounts. The standards are designed to be flexible, to allow for differences in local statistical needs and conditions. Within each country GDP is normally measured by a national government statistical agency, as private sector organizations normally do not have access to

16965-526: The process of drafting these plans and their approval is excessively restrictive, distant, and lacking in democratic elements to guarantee the essential engagement of social partners. This criticism is in line with the report of the CEE Bankwatch Network, which argues that in most cases the final updated version of these plans is not publicly available. This phenomenon has been exacerbated by the lack of meaningful collaboration between actors at

17110-512: The products must be bought by somebody, therefore the value of the total product must be equal to people's total expenditures in buying things. The income approach works on the principle that the incomes of the productive factors ("producers", colloquially) must be equal to the value of their product, and determines GDP by finding the sum of all producers' incomes. Also known as the Value Added Approach, it calculates how much value

17255-457: The programme gives an overview of the strategic investments and the use of the structural funds made by the state. The situation of the country regarding the objectives of the current framework strategy (currently Europe 2020) are also reported. The measures adopted in the National Reform Programmes should be precise and represent immediate and comprehensive budgetary consequences in relation to national objectives and targets. Each country sets in

17400-488: The progress regarding the implementation of the Country-specific recommendations addressed by the Council in the previous years, the reform priorities that the country needs to endorse as well as a summary of the possible in-depth investigation launched under the AMR. Country reports also cover all areas of macroeconomic or social relevance with the aim of monitoring the progress of Member States. Countries can find in their report

17545-476: The promotion of social cohesion policies, employment generation and economic diversification. The establishment of the Just Transition Mechanism coincides with the EU’s growing concerns with climate change and its effects on society, the economy and the living standards of the population. In 2016, Édouard Martin , member of the European Parliament for the Socialists and Democrats , proposed an amendment to

17690-445: The ratio between the value of money in the year the GDP was measured and the value of money in a base year. For example, suppose a country's GDP in 1990 was $ 100 million and its GDP in 2000 was $ 300 million . Suppose also that inflation had halved the value of its currency over that period. To meaningfully compare its GDP in 2000 to its GDP in 1990, we could multiply the GDP in 2000 by one-half, to make it relative to 1990 as

17835-415: The region is the GDP per capita and can approximate a concept of a standard of living . Nominal GDP does not reflect differences in the cost of living and the inflation rates of the countries; therefore, using a basis of GDP per capita at purchasing power parity (PPP) may be more useful when comparing living standards between nations, while nominal GDP is more useful comparing national economies on

17980-457: The requirement of all Impact Assessment to have a gender-impact assessment. Despite efforts, gender equality in Europe progresses at a slow rate, with the Gender Equality Index projecting that at the current pace, it will take almost three generations to achieve gender equality. The European Commission's Gender Equality Strategy 2020-2025 acknowledges the importance of diversity and intersectionality in its framework for attaining gender equality. In

18125-587: The rest of the world minus income payments to the rest of the world. In 1991, the United States switched from using GNP to using GDP as its primary measure of production. The relationship between United States GDP and GNP is shown in table 1.7.5 of the National Income and Product Accounts . Another example that amplifies the difference between GDP and GNI is the comparison of developed and developing country indicators. The GDP of Japan for 2020

18270-549: The role of bringing the Semester closer to national stakeholders by overseeing the implementation of the CSRs, feeding the Country Teams with CSR analysis, national insights and sentiments, and sometimes explaining complex details of EU economic governance to the national stakeholders. When the draft has been formulated by the Country Teams, it is then submitted to the Director-Generals of Secretariat-General of

18415-408: The same result. They are the production (or output or value added) approach, the income approach, and the speculated expenditure approach. It is representative of the total output and income within an economy. The most direct of the three is the production approach, which sums up the outputs of every class of enterprise to arrive at the total. The expenditure approach works on the principle that all of

18560-467: The same, but in response to the high socio-economic uncertainty of the crisis, some measures were made more flexible for the Member States . As opposed to other years, the 2020 European Semester recommendations mainly focused on broad areas that were the most related to the sanitary crisis, such as investments on healthcare, preservation of employment, research and development and the preservation of

18705-432: The significance of approaching the Just Transition agenda from a gender perspective from the very beginning. The World Resources Institute highlights that phasing out coal is crucial for reaching climate neutrality since coal is the most polluting fossil fuel. According to WRI's analysis, Greece has made the fastest reduction in coal usage among the top 10 countries globally, going from 51% in 2014 to 10% in 2022. However, it

18850-540: The single market. Created in a context of crises, the European Semester will be adapted in 2021 in response to the COVID-19 crisis. The Recovery and Resilience Facility, as part of the NextGenerationEU (that aims at helping the EU recover from the sanitary crisis), was integrated into the European Semester framework. The European economic governance is formed by 3 pillars that were taken over under

18995-499: The socially fair transition of the European Green Deal, emphasizing the effects of transitioning to a low-carbon society from an intersectional and gender perspective. Studies highlight the different impacts of climate change on men and women, with men contributing more to carbon emissions and women being more vulnerable to its negative effects. The establishment of the Just Transition Fund relied on an Impact Assessment conducted in 2018 that did not contain any reference to gender, despite

19140-401: The source data for the expenditures components are considered more reliable than those for the income components [see income method, above]." Encyclopedia Britannica records an alternate way of measuring exports minus imports: notating it as the single variable NX. GDP can be contrasted with gross national product (GNP) or, as it is now known, gross national income (GNI). The difference

19285-415: The start of a dialogue between the Member States and the Commission . Before the budget of each Member State is debated in its national parliament, the Commission needs to assess it according to numerous elements such as the macroeconomic and budgetary situation of the country or the council recommendations made during former semesters. The Commission releases three documents which explain and demonstrate

19430-635: The territories identified in the Territorial Just Transition Plans prepared by the Member States. The Public Sector Loan Facility is the third pillar of the Just Transition Mechanism. It involves a sum comprising €1.5 billion in grants, financed by the EU budget, and €10 billion in loans, from the European Investment Bank, mobilizing €18.5 billion of public investment. These funds aim to incentivize investment and economic growth in those areas most concerned by

19575-536: The total expenditure used to buy things is a way of measuring production. This is known as the expenditure method of calculating GDP. GDP (Y) is the sum of consumption (C) , investment (I) , government expenditures (G) and net exports (X − M) . Here is a description of each GDP component: C , I , and G are expenditures on final goods and services; expenditures on intermediate goods and services do not count. (Intermediate goods and services are those used by businesses to produce other goods and services within

19720-399: The transition into a climate-neutral economy. For that purpose, the EU has mobilized €20.28 billion in current prices. To be precise, the Just Transition Fund comprises €9248 million from the EU’s financial programme, €10872.9 million from Next Generation EU funds, and €167.7 million stemming from other countries and entities’ contributions. Access to the fund is conditional to the adoption of

19865-659: The transition to a greener economy. Through the InvestEU Just Transition Scheme, the European Investment Bank (EIB) will provide technical support and budgetary guarantees to incentivize investment in those areas that will bear the brunt of the green transition. It is expected to mobilize €15 billion in mostly private sector investments. These funds will be directed towards the development of sustainable energy infrastructures, transport, small business and education programs; targeting

20010-404: The transition. The just transition also involves a deep understanding of gender roles within mining communities. Women can be disproportionately affected by the transition in mining industries. The Center for Strategic & International Studies (CSIS) highlights the importance of recognizing the far-reaching influence of the mining sector across society and the deep-rooted gender inequality of

20155-624: The voting. A lot of countries such as Belgium or Italy were subjected to that procedure. Only 2 countries have never seen an excessive deficit procedure launched against them: Estonia and Sweden . All the Member States have to build their budgetary framework according precise rules detailed in Directive 2011/85 of the Six Pack . Those rules are notably related to accounting, statistics, realism in budgetary information, etc. In case of suspicion of data manipulation or wrong information,

20300-473: The words of one academic economist, "The actual number for GDP is, therefore, the product of a vast patchwork of statistics and a complicated set of processes carried out on the raw data to fit them to the conceptual framework." China officially adopted GDP in 1993 as its indicator of economic performance. Previously, China had relied on a Marxist-inspired national accounting system. GDP can be determined in three ways, all of which should, theoretically, give

20445-450: The worst effects of the energy transition . This is particularly the case for coal mining communities, which lack employment opportunities beyond the sector. For that purpose, the Just Transition Mechanism will help to mobilise at least €100 billion over the period 2021-2027, to be invested in regions highly dependent on carbon intensive industries - such as coal, lignite, oil shale and peat production facilities -; making special emphasis in

20590-535: Was created under the legal basis of the Six-pack and especially Regulation (EU) No 1175/2011 of the European Parliament and of the Council of 16 November 2011 amending Council Regulation (EC) No 1466/97 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies. The first Semester was initiated in 2011. At the end of 2017, the scope of

20735-486: Was enhanced and one additional pillar was added while the existing pillars were strengthened. The 3 Pillars that form the European Semester since the crisis include: The European Semester is a framework of processes that combines hard and soft law. Soft law refers to non-binding processes. Indeed, during the European Semester, there is a coordination between the Member States that are not legally engaged and not forced to comply with its outcomes or its targets. Nevertheless,

20880-493: Was first developed by Simon Kuznets for a 1934 U.S. Congress report, where he warned against its use as a measure of welfare (see below under limitations and criticisms ). After the Bretton Woods Conference in 1944, GDP became the main tool for measuring a country's economy. At that time gross national product (GNP) was the preferred estimate, which differed from GDP in that it measured production by

21025-617: Was meant to boost and improve the national strategies towards more fiscal, economic, employment and social policy coordination. It is based on different acts as well as on actions and development plans such as the Stability and Growth Pact (SGP), the European Employment Strategy , the Lisbon Strategy that sets the basis of the Open Method of Coordination and the Horizon 2020 strategy. The European Semester

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