Recommendation on the economic policy of the euro area

Summary:

On 21 November 2018 the European Commission presented a draft Council Recommendation on the economic policy of the euro area, which outlines an overall orientation for the collective challenges ahead, focusing on the years 2019 and 2020.

Further information:

The euro area is entering its sixth year of uninterrupted economic growth and the negative output gap is closing, but risks to the outlook are increasing and growth is expected to moderate. Against the backdrop of a gradual normalisation of monetary policy, appropriately differentiated fiscal policies and focus on structural reforms are needed to continue supporting growth in the short and long term.

Strengthening fiscal sustainability in the euro area and its member states while differentiating national policies in full respect of the Stability and Growth Pact and taking into account fiscal space is imperative to be able to react to the next crisis. Fiscal structural reforms also remain crucial for improving economic resilience, fiscal sustainability and strengthening the economic growth potential.

The draft Recommendation was presented as part of the 2019 European Semester Autumn Package, accompanied by a Staff Working Document providing an analysis of the euro area economy.

Official

EUR-Lex: SWD(2018)467: Commission Staff Working Document accompanying COM(2018)759 https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2018:467:FIN

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