Communication on orientations for a reform of the EU economic governance framework

Summary:

Communication adopted by the European Commission on 9 November 2022, setting out orientations for a reformed economic governance framework in the European Union (EU).

Further information:

The European Commission re-launched in October 2021 the public debate on the review of the EU's economic governance framework, providing an opportunity for relevant stakeholders to debate the need for reform based on existing and future challenges. This Communication incorporates the next step, outlining the Commission's orientations for a reform of the framework, addressing key economic and policy issues.

The objective of the reform is to facilitate effective economic surveillance, anchored in a common framework that ensures equal treatment and multilateral policy coordination. The framework should be robust to changing economic conditions and uncertainty, requiring a solid and predictable rule book and escape clauses for exceptional circumstances. It should also pursue an integrated approach whereby surveillance tools complement each other, in the context of the European Semester.

The Communication was adopted by the European Commission on 9 November 2022.

Official

European Commission: Economy and Finance: Economic and fiscal governance https://economy-finance.ec.europa.eu/economic-and-fiscal-governance_en

General Secretariat of the Council: Policies: Economic governance framework https://www.consilium.europa.eu/en/policies/economic-governance-framework/

European Commission: Press Release, 09/11/2022: Building an economic governance framework fit for the challenges ahead https://ec.europa.eu/commission/presscorner/detail/en/ip_22_6562

European Commission: Questions and answers: Building an economic governance framework fit for the challenges ahead (9 November 2022) https://ec.europa.eu/commission/presscorner/detail/en/qanda_22_6563

European Commission: Remarks by Executive Vice-President Dombrovskis at the press conference on the economic governance review (9 November 2022) https://ec.europa.eu/commission/presscorner/detail/en/statement_22_6726

European Commission: Remarks by Commissioner Gentiloni at the press conference on the economic governance review (9 November 2022) https://ec.europa.eu/commission/presscorner/detail/en/statement_22_6725

Greens/EFA EP Group: Press Release, 09/11/2022: Commission reform of fiscal rules welcome but could be more ambitious https://www.greens-efa.eu/en/article/press/commission-reform-of-fiscal-rules-welcome-but-could-be-more-ambitious

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News

Politico, 08/11/2022: Brussels seeks to end era of fiscal rigor https://www.politico.eu/article/brussels-seeks-to-end-fiscal-rigour-era/

Kathimerini, 08/11/2022: EU eyes longer, negotiated debt reduction paths in rules review https://www.ekathimerini.com/economy/1197463/eu-eyes-longer-negotiated-debt-reduction-paths-in-rules-review/

Reuters, 09/11/2022: EU Commission proposes longer, negotiated debt reduction paths for EU countries https://www.reuters.com/markets/europe/eu-commission-proposes-longer-negotiated-debt-reduction-paths-eu-countries-2022-11-09/

EurActiv, 09/11/2022: Commission proposes more individual debt rules for EU countries https://www.euractiv.com/section/economy-jobs/news/commisison-proposes-more-individual-debt-rules-for-eu-countries/

EUObserver, 09/11/2022: EU Commission pitches loosening fiscal rules for ‘new reality’ https://euobserver.com/eu-political/156405

RTÉ News, 09/11/2022: Commission proposes changes to EU's debt rules https://www.rte.ie/news/business/2022/1109/1335143-european-debt-rules-revamp/

The Irish Times, 09/11/2022: EU bids farewell to austerity with review of debt rules https://www.irishtimes.com/business/2022/11/09/eu-bids-farewell-to-austerity-with-review-of-debt-rules/

EurActiv, 10/11/2022: German finance minister sceptical of new EU debt rules https://www.euractiv.com/section/economic-governance/news/german-finance-minister-sceptical-of-new-eu-debt-rules/

Le Monde, 10/11/2022: Stability Pact: European Commission wants more flexible rules for member states https://www.lemonde.fr/en/economy/article/2022/11/10/stability-pact-european-commission-wants-more-flexible-rules-for-member-states_6003638_19.html

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Commentary and Analysis

EurActiv, 04/11/2022: Looming reform of EU debt and deficit rules: A look at current rules https://www.euractiv.com/section/economic-governance/news/reform-of-eu-debt-and-deficit-rules-these-are-the-current-rules/

EUObserver: Opinion, 08/11/2022: Post-2008 austerity has made EU citizens €3,000 per year worse off https://euobserver.com/opinion/156393

Social Europe, 08/11/2022: How to reform the European fiscal rules https://socialeurope.eu/how-to-reform-the-european-fiscal-rules

European Trade Union Confederation (ETUC): Press Release, 09/11/2022: EU’s economic rules will still hold back investment in an economy that works for people https://www.etuc.org/en/pressrelease/eus-economic-rules-will-still-hold-back-investment-economy-works-people

European Environment Bureau (EEB): Meta News, 09/11/2022: Enabling the EU wellbeing economy: we need a new pact, not a rule tweak https://meta.eeb.org/2022/11/09/enabling-the-eu-wellbeing-economy/

ING Think: Article, 09/11/2022: Towards another reform of Europe’s fiscal rules https://think.ing.com/articles/towards-another-reform-of-europes-fiscal-rules

Climate Action Network (CAN Europe): Blog, 09/11/2022: EC Orientations to reform the EU fiscal rules: Not yet enough to accelerate climate action and support people in the transition https://caneurope.org/blog_fiscal_reform_reaction/

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