Fiscal policy guidance for 2024

Summary:

Communication adopted by the European Commission on 8 March 2023, providing Member States with guidance on the conduct and coordination of fiscal policy in 2024.

Further information:

Despite gradual improvements in the last months, the outlook for the European economy still faces headwinds and uncertainty. In this context, the European Commission urges fiscal policies to focus on ensuring medium-term debt sustainability as well as raising potential growth in a sustainable manner for the period 2023-2024.

In November 2022, the Commission adopted orientations for a reform of the European Union's (EU) economic governance framework, after discussions were originally launched in February 2020. While a return to the sole implementation of the existing framework would fail to acknowledge different circumstances in the aftermath of the COVID-19 (coronavirus) pandemic, a new legal framework is not yet in place. This transitory phase requires guidance for EU Member States on the conduct and coordination of fiscal policy that take into account the challenges facing public finances and the discussions on the future economic governance framework.

This guidance seeks to inform the preparation of Stability and Convergence Programmes in which Member States of the European Union (EU) lay out their medium-term fiscal-structural plans. The Communication was adopted by the Commission on 8 March 2023. On 13 March, the Eurogroup exchange views on fiscal policy guidance for 2024 based on this Communication.

Official

European Commission: Economic and Fiscal Governance: Fiscal policy guidance https://economy-finance.ec.europa.eu/economic-and-fiscal-governance/stability-and-growth-pact/fiscal-policy-guidance_en

European Commission: Press Release, 08/03/2023: Fiscal policy guidance for 2024: Promoting debt sustainability and sustainable and inclusive growth https://ec.europa.eu/commission/presscorner/detail/en/ip_23_1410

European Commission: Questions and answers: Commission presents fiscal policy guidance for 2024 (8 March 2023) https://ec.europa.eu/commission/presscorner/detail/en/qanda_23_1411

European Commission: Press remarks by Executive Vice-President Dombrovskis and Commissioner Gentiloni on the Fiscal policy guidance for 2024 (8 March 2023) https://ec.europa.eu/commission/presscorner/detail/en/speech_23_1542

Eurogroup: Eurogroup statement on the fiscal guidance for 2024 (13 March 2023) https://www.consilium.europa.eu/en/press/press-releases/2023/03/13/eurogroup-statement-on-the-fiscal-guidance-for-2024/

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News

Bloomberg, 07/03/2023: EU to Tell Member States to Start Reining In National Debt https://www.bloomberg.com/news/articles/2023-03-07/eu-to-tell-member-states-to-start-reining-in-national-debt

Reuters, 08/03/2023: EU ready to accept countries' own fiscal tightening goals for 2024 https://www.reuters.com/markets/europe/eu-executive-propose-countries-set-own-fiscal-targets-2024-2023-03-08/

EurActiv, 08/03/2023: EU Commission to police public deficits again in 2024 https://www.euractiv.com/section/economy-jobs/news/eu-commission-to-police-public-deficits-again-in-2024/

Euronews, 08/03/2023: Brussels to delay fines for excessive deficit until 2024, giving countries more time to adapt https://www.euronews.com/my-europe/2023/03/08/brussels-to-delay-fines-for-excessive-deficit-until-2024-giving-countries-more-time-to-ada

EUObserver, 08/03/2023: EU proposes temporary fix to debt and deficit rules https://euobserver.com/green-economy/156805

Bloomberg, 13/03/2023: Euro-Area Finance Chiefs Agree Need for Prudent Fiscal Policies https://www.bloomberg.com/news/articles/2023-03-13/euro-area-finance-chiefs-agree-need-for-prudent-fiscal-policies?leadSource=uverify%20wall

Reuters, 13/03/2023: Euro zone ministers back tighter fiscal stance for 2024 https://www.reuters.com/markets/europe/euro-zone-ministers-back-tighter-fiscal-stance-2024-2023-03-13/

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