Recommendation for a Council Recommendation on the economic policy of the Euro area

Further information:

The Commission recommends a broadly neutral fiscal stance and a balanced policy mix for the euro area as a whole. Member States are asked to step up their efforts to implement measures to fight aggressive tax planning. The recommendation also calls for policies that support sustainable and inclusive growth, and improve resilience, rebalancing and convergence. The Commission urges Member States to achieve significant progress towards completing the Single Market, particularly in services. Member States with current account deficits or high external debt should seek to raise productivity, while Member States with current account surpluses should promote wage growth and foster investment and domestic demand.

The Commission advocates the implementation of reforms that promote equal opportunities and access to the labour market, fair working conditions, social protection and inclusion. It also calls on euro area Member States to shift taxes away from labour, in particular for low-income and second earners.

The recommendation calls for continued work to complete the Banking Union, with regard to risk reduction and risk sharing, including a European Deposit Insurance Scheme and making the common backstop for the Single Resolution Fund operational. European supervision of financial institutions should be strengthened to prevent the accumulation of risks. The reduction of the levels of non-performing loans should also be accelerated and EU capital markets further integrated and developed to facilitate access to finance, especially for small and medium sized-enterprises (SMEs).

Finally, the Commission recommends swift progress on completing the Economic and Monetary Union in full respect of the Union's internal market and in an open and transparent manner towards non-euro area Member States.

The European Commission adopted on 22 November 2017 a draft Council Recommendation on the driving elements of the economic policy in the Eurozone.

The Council of the European Union adopted the Recommendation on 23 January 2018.

Council of the European Union: Press Release, 23.01.18: Council recommendation on the economic policy of the euro area http://www.consilium.europa.eu/en/press/press-releases/2018/01/23/council-recommendation-on-the-economic-policy-of-the-euro-area/

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