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On 20 February the Commission adopted for transmission to the Council a Communication on the economic situation in the Community in which, in accordance with the 1974 "convergence" Decision, it undertakes the traditional first-quarter examination of the economic policy guidelines contained in the latest Annual Economic Report (1). With the international economic environment proving somewhat more favourable than was expected as recently as the autumn, the Commission reckons that, as in 1984, real gross domestic product will grow by 2.4% in 1985. Inflation will decline further and the current account show a small surplus. Unemployment, however, is still at a worryingly high level and, taking the average for 1985, will rise slightly (from 10.9% in 1984 to an estimated 11.2%) although there are some signs of improvement. Against this background, the Commission is adhering to the main goal of its economic policy strategy as approved by the Council and set out in the Annual Economic Report for 1984. These goals are: - to achieve a stronger expansion in productive potential and to make use of the extra scope that is available for growth provided this is compatible with the objective of price stability; - to ensure that economic growth is more conductive to job creation (more jobs per percentage point of growth than in the past) and to set unemployment on a clear downward trend. All those responsible for economic policy (the Community, national governments, employers and unions) should contribute to and work closely together on this strategy. The key aspects are the following: - there should be an accelerated opening up and strengthening of the Community's internal market; - 2 - - the main task of monetary policy is to ensure internal and external stability, providing a money supply that accomodates the desired rate of growth; - financial policy in the countries ith large budget deficits should remain on a consolidation course but any room for manoeuvre used to underpin growth; - the Community and the national governments should examine the possibility of doing more to meet the existing need for public infrastructure investment offering high economic returns; - continuing the policy of wage moderation, economic policymakers should agree on such decisions on income trends and employment conditions (including working time) as are consistent with the employment objective and reconcile economic efficiency and social criteria. The closer the cooperation between Member States' governments and the broader the consensus reached in the dialogue between the two sides of industry, the more successful this policy will be.