Report on the application of Regulations (EU) No 1173/2011, 1174/2011, 1175/2011, 1176/2011, 1177/2011, 472/2013 and 473/2013 and on the suitability of Council Directive 2011/85/EU

Summary:

Communication published by the European Commission on 5 February 2020, which presents a review on the effectiveness of the European Union's economic surveillance framework.

Further information:

This Communication reviews the EU's economic governance framework, and in specific it assesses the application of the six- and two-pack legislation. It also sets out how the European Commission plans to consult interested parties to receive their views on the functioning of the economic framework and the possible ways to enhance its effectiveness.

The six-pack and two-pack legislation was introduced to address the vulnerabilities exposed by the economic and financial crisis. The legislative acts require the European Commission to review and report on the application of the legislation every five years. The start of a new political cycle at European level appeared as an opportunity to assess the effectiveness of the existing rules. The main questions addressed in this review are the extent to which the different surveillance elements were effective in achieving their key roles, namely:

• ensuring sustainable government finances and economic growth, as well as avoiding macroeconomic imbalances;
• enabling closer coordination of economic policies;
• promoting convergence in Member States’ economic performance.

The review finds that the surveillance framework supported the correction of existing macroeconomic imbalances and the reduction of public debt. It also promoted sustained convergence of Member States' economic performances and closer coordination of fiscal policies within the Euro area. However, the assessment highlghts that the fiscal framework became excessively complex as a result of the need to cater for a wide variety of evolving circumstances while pursuing multiple objectives.

This Communication was also used to launch a public debate on the economic governance framework. The engagement was set to take place through various means, including dedicated meetings, workshops and an online consultation platform.

• Alternative Source 1

Official

EUR-Lex: SWD(2020)210: Report on the application of Regulations (EU) No 1173/2011, 1174/2011, 1175/2011, 1176/2011, 1177/2011, 472/2013 and 473/2013 and Council Directive 2011/85/EU (Staff Working Document accompanying Communication) https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2020:210:FIN

EUR-Lex: SWD(2020)211: Review of the suitability of the Council Directive 2011/85/EU on requirements for budgetary frameworks of the Member States https://eur-lex.europa.eu/legal-content/EN/TXT/?uri=SWD:2020:211:FIN

European Commission: Press Release, 05/02/2020: Commission presents review of EU economic governance and launches debate on its future https://ec.europa.eu/commission/presscorner/detail/en/ip_20_170

European Commission: Economic governance review: Questions and answers (5 February 2020) https://ec.europa.eu/commission/presscorner/detail/en/qanda_20_171

European Commission: Remarks by Executive Vice-President Dombrovskis at the press conference on the review of EU economic governance and the launch of a debate on its future (5 February 2020) https://ec.europa.eu/commission/presscorner/detail/en/speech_20_204

European Commission: Remarks by Commissioner Gentiloni at the press conference on the review of EU economic governance and the launch of a debate on its future (5 February 2020) https://ec.europa.eu/commission/presscorner/detail/en/speech_20_205

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