7. considers the mentioned indicators - "stable and sustainable macro-economy, prudent fiscal and monetary policies, sound macroeconomic policies" - too general and asks the Commission to inform Parliament, in its next annual report on the EC development policy, in detail on conditions and circumstances to be fulfilled in order to have the assurance that budget support is an adequate instrument;

In this respect, the continuation of the structural reforms envisaged in the 1998 Stability Programme and in the Progress Report on the Reform of Goods, Services and Capital markets is essential to allow non-inflationary employment-oriented growth.

These indicators are related to sustainable growth, economic dynamism and a sound, stability oriented macroeconomic environment.

(10) Whereas in its Resolution of 16 June 1997 on the establishment of an exchange-rate mechanism in the third stage of Economic and Monetary Union, the European Council issued firm political guidelines in accordance with which an exchange-rate mechanism is established in the third stage of EMU, hereafter referred to as 'ERM2`; whereas the currencies of non-participating Member States joining ERM2 will have a central rate vis-à-vis the euro, thereby providing a reference point for judging the adequacy of their policies; whereas the ERM2 will also help to protect them and the Member States adopting the euro from unwarranted pressures in ...[+++] the foreign-exchange markets; whereas, so as to enable appropriate surveillance in the Council, non-participating Member States not joining ERM2 will nevertheless present policies in their convergence programmes oriented to stability thus avoiding real exchange rate misalignments and excessive nominal exchange rate fluctuations;

The Commission adopted the Editorial section of the Employment in Europe 1996 report which states, inter alia, that : "The pursuit of stability-oriented macroeconomic policies.must be continued without giving in to technology pessimism, fear of global trade liberalisation or beggar-thy-neighbour attitudes through uncoordinated, stand alone- action.". The key political messages and policy conclusions which can be drawn from the Report are to: carry on with stability-oriented macroeconomic policies; promote increased demand; address t ...[+++]he structural rigidities; respect solidarity and social justice; redress the distortion against low- wage and low-skill groups; reinforce the skill level of the European workforce; implement preventive policies against long-term unemployment; and promote active labour market measures.

Key messages The key political messages and policy conclusions which can be drawn from the Employment in Europe 1996 Report are as follows: - Carry on with stability-oriented macroeconomic policies : The pursuit of stability-oriented macroeconomic policies which enhance confidence in financial markets and among consumers must be continued, without giving in to technology pessimism, fear of global trade liberalisation or beggar-thy-neighbour attitudes through uncoordinated, stand-alone action.