Proposal for a Council Directive amending Directive 2011/85/EU on requirements for budgetary frameworks of the Member States

Author (Corporate)
Series Details COM (2023) 242
Publication Date 26/04/2023
Content Type

Summary:

Legislative initiative - tabled by the European Commission on 26 April 2023 - introducing amendments to Directive 2011/85/EU as regards the requirements for budgetary frameworks of the Member States of the European Union (EU).

Further information:

Council Directive 2011/85/EU set out detailed ruled for national budgets in the EU. This piece of legislation was adopted as part of the Six-Pack, to take into account the lessons of the global financial crisis and the Euro area sovereign debt crisis.

In 2019, the European Court of Auditors (ECA) published a report noting weaknesses as regards the efficacy of medium-term budgeting and independent fiscal institutions. The suitability of the Council Directive was also assessed by the European Commission in February 2020, highlighting progress and room for improvement in the existing set-up of national budgetary frameworks. In November 2022, the Commission put forward its orientations for a reform of the EU's economic governance framework.

The proposed Council Directive presents some amendments to the existing piece of legislation. The amendments aim at strengthening national ownership and the medium-term orientation of budgetary planning. It seeks to simplify existing legislation, clarify certain provisions, strengthen national ownership, promote a medium-term ownership, and improve the quality of public finance.

The proposed Council Regulation was adopted by the European Commission on 26 April 2023 as part of a legislative package seeking to reform the EU's fiscal framework. The European Parliament's relevant committee adopted its report on the draft law on 11 December. The Council of the European Union adopted its general approach to the text on 21 December. In the framework of the special consultation procedure, an informal agreement between the two institutions on the text for the draft law was reached on 10 February 2024.

Source Link Link to Main Source https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2023:242:FIN
Related Links
Official
European Parliament: Legislative Observatory: Procedure File for Proposal on Economic governance: requirements for budgetary frameworks of the Member States (2023/0136(NLE)) https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?lang=en&reference=2023/0136(NLE)
European Parliament: Legislative Train Schedule: Review of the economic governance framework (CWP 2023) https://www.europarl.europa.eu/legislative-train/theme-an-economy-that-works-for-people/file-economic-governance-review-(cwp-2023)
European Commission: Economy and Finance: Economic and fiscal governance https://economy-finance.ec.europa.eu/economic-and-fiscal-governance_en
European Commission: Press Release, 26/04/2023: Commission proposes new economic governance rules fit for the future https://ec.europa.eu/commission/presscorner/detail/en/ip_23_2393
European Commission: Questions and answers: Commission proposes new economic governance rules fit for the future (26 April 2023) https://ec.europa.eu/commission/presscorner/detail/en/qanda_23_2394
European Commission: Remarks by Executive Vice-President Dombrovskis and Commissioner Gentiloni at the press conference on the review of the EU's economic governance framework (26 April 2023) https://ec.europa.eu/commission/presscorner/detail/en/speech_23_2467
European Parliament: Press Release, 11/12/2023: Economic governance reform: improving credibility, ownership and scope for investment https://www.europarl.europa.eu/news/en/press-room/20231207IPR15733/
Council of the European Union: Press Release, 21/12/2023: Economic governance review: Council agrees on reform of fiscal rules https://www.consilium.europa.eu/en/press/press-releases/2023/12/21/economic-governance-review-council-agrees-on-reform-of-fiscal-rules/
Council of the European Union: Press Release, 10/02/2024: Economic governance review: Council and Parliament strike deal on reform of fiscal rules https://www.consilium.europa.eu/en/press/press-releases/2024/02/10/economic-governance-review-council-and-parliament-strike-deal-on-reform-of-fiscal-rules/
European Commission: Press Release, 10/02/2024: Commission welcomes political agreement on a new economic governance framework fit for the future https://ec.europa.eu/commission/presscorner/detail/en/ip_24_711
European Parliament: Press Release, 10/02/2024: Deal on EU economic governance reform https://www.europarl.europa.eu/news/en/press-room/20240205IPR17419/

ESO Records
Review of the European Union’s economic governance framework https://www.europeansources.info/record/review-of-the-european-unions-economic-governance-framework/

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