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

Summary:

Proposal tabled by the European Commission on 18 November 2020 for a Council Recommendation concerning the economic policy of the Eurozone.

Further information:

The proposed Recommendation presents tailored advice to euro area Member States on those topics that affect the functioning of the Eurozone as a whole. This year it also provides policy guidance on the priorities that euro area Member States should pursue in their Recovery and Resilience Plans (RRPs).

The recommendation calls on euro area Member States to make sure that their fiscal policies remain supportive in 2021. It also calls on Member States to reorient fiscal policies towards achieving prudent medium-term positions once epidemiological and economic conditions allow. It encourages Member States to strengthen national institutional frameworks and to implement priority reforms and investments that can make the euro area and its members more sustainable and resilient. Such reforms and investment measures should create the right conditions for the economic recovery consistent with the green and digital transitions. It also calls for the completion of the Economic and Monetary Union (EMU) and to strengthen the international role of the euro.

The Recommendation was published by the European Commission on 18 November 2020 as part of the Autumn Package of the 2021 European Semester.