policy coordination Although for tax policy coordination, there is no requirement to achieve certain improvements or implement specific measures, as member states only more vaguely: "commit to engage in structured discussions on tax policy issues, notably to ensure the exchange of best practices, the avoidance of harmful practices, and consideration of proposals to fight against fraud and tax evasion." The four key objectives listed above are intended to be addressed with individualized measures by all member countries of the pact, unless a Member State can "show that action is not needed" in a specific area. While the pact comes with specific strategies, these are not compulsory. Specifically the pact states: "The choice of the specific policy actions necessary to achieve the common objectives remains the responsibility of each country, but particular attention will be paid to the set of possible measures mentioned below." Each member state commits at an annual frequency to "agree at the highest level on a set of concrete [policy] actions to be achieved within 12 months". The actions and initiatives taken by each member state across the four common key objectives, shall after having been agreed, then be noted as an explicit part of their "National Reform Program" and/or "Stability/Convergence Program" reports, being published annually in March/April. Finally, in addition to this: "Member States also commit to consult their partners on each major economic reform having potential spill-over effects before its adoption". Competitiveness This area of the pact, is the same as several European countries had to address in the 1980s by abolishing Wage Indexation. The need for competitiveness improvements will be evaluated for each country upon analysis of its national Unit Labour Cost (ULC), a quantitative measure of wage costs per unit produced or serviced, and is to be addressed by measures that will reduce the cost of labour and/or measures that will increase productivity. Each country will be responsible for the selection of its own specific policy actions to improve competitiveness, but should mainly pick and choose between the following reform types: Labour cost reducing measures Reforming the "wage setting arrangements", and where necessary adjust the "degree of centralisation in the bargaining process" and "wage indexation mechanisms". Ensure wages in the public sector only increase at a modest pace (equal to or below the inflation rate), as this has a strong signaling effect on the wage setting in the private sector. Productivity increasing measures