Rapid economic growth at all costs being the dominant political mantra since the beginning of the crisis, EU environmental legislation has been the target of unrelenting pressures for easing, on allegations that it prevents businesses from growing and thus hampers economic recovery. A recent study by the OECD however adds evidence to the opposite conclusion: strict environmental regulations and policies do not harm export competitiveness. This conclusion is consistent with the findings of previous OECD studies, which prove that a stringent regulatory framework for the protection of the environment has no negative impact on productivity – instead, they can work together.

According to the working paper, “Environmental policies are not found to be a major driver of international trade patterns, but have some significant effects on specialisation. More stringent domestic policies have no significant effect on overall trade in manufactured goods, but are linked to a comparative disadvantage in "dirty" industries, and a corresponding advantage in "cleaner" industries. The effects are stronger for the domestic component of exports than for gross exports, yet notably smaller than the effects of e.g. trade liberalisation.”

1.     European Commission (ECFIN), Statement by the European Commission and the ECB following the second post-programme surveillance mission to Portugal (March 2015)

“Economic and financial conditions in Portugal have further improved since the conclusion of the first post-programme surveillance mission in autumn 2014. However, the economic recovery continues to be held back by the remaining macroeconomic imbalances. While the authorities reiterated their commitment to budgetary consolidation, efforts to reduce the underlying structural budget deficit need to continue. The structural reforms undertaken during the financial assistance programme are increasingly having an effect. Nevertheless, the reform agenda to further enhance medium-term growth prospects, job creation and competitiveness remains challenging.”

2.     European Commission (ECFIN), New Excessive Deficit Procedure steps published (18 May 2015)

3.     European Commission, Five Presidents' Report sets out plan for strengthening Europe's Economic and Monetary Union as of 1 July 2015 (22 June 2015)

“What’s in the Five Presidents’ Report concretely?

1. Towards an Economic Union of convergence, growth and jobs

2. Towards Financial Union

3. Towards Fiscal Union

4. Strengthening Democratic Accountability, Legitimacy and Institutions: From Rules to Institutions

5. The Social dimension of EMU

Next Steps: This report has put forward the principal steps necessary to complete EMU at the latest by 2025. The first initiatives should be launched by the EU institutions as of 1 July 2015. To prepare the transition between Stages 1 and 2, the Commission – in consultation with the Presidents of the other EU institutions – will present a "White Paper" in Spring 2017, assessing progress made in Stage 1 and outlining next steps needed. It will discuss the legal, economic and political preconditions of the more far-reaching measures necessary to complete EMU in Stage 2, and will draw on analytical input from an expert consultation group. Translating the Five Presidents’ report into laws and institutions should begin without delay.”

An EU-wide 1.3% reduction in CO₂ emissions between 2011 and 2012 marks the lowest recorded annual greenhouse gas emissions (GHG) since 1990: 19.2%. This brings the EU very close to the achievement of the 2020 emissions reduction target by 20%. Despite however the euphoria that this downward trend may generate, the main reductions are attributed to lower industrial activity and transport, primarily in crisis-stricken member states. Increased emissions since the previous year were recorded in the United Kingdom (3.2%), Germany (1.1%), Ireland (1.4%) and Malta (3.7%).

An environmentally and socially sustainable exit from the current financial crisis, in order to preserve the natural capital that underpins successful economic activity; is urgently needed, stresses WWF ahead of the Informal Meeting of the European Council gathering in Brussels on 23 May.