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The EU is tackling the worst economic crisis since its foundation – governments and citizens alike have faced pressures like never before, unprecedented decisions have been taken in a very short timespan and this has been costly and painful. The crisis did not start in Europe and other major economies have suffered similar shocks.
Inside the EU, the impact has varied from country to country – some Member States rebounded quickly from the initial downturn but others are facing huge challenges. The Commission's forecasts show that economic recovery is gaining ground in the EU, but it remains uneven and subject to uncertainties.
A new EU economic governance is emerging. The legislative proposals of the Commission and the work of the Task Force headed by the President of the European Council will lead to a complete redesign of the EU tools to prevent macro-economic imbalances and reinforce the operation of the Stability and Growth Pact. In Spring 2011, Euro area Member States and several other Member States agreed to make additional efforts to foster competitiveness, employment, sustainability of public finances and financial stability as part of the Euro Plus Pact.
The EU is now implementing a new working method – the European semester – to ensure that collective discussion on key priorities takes place at EU level, before and not after national decisions are taken. The results of this discussion must then be effectively reflected in national decision-making, in particular in national budgets and structural reforms, so that national and EU efforts are brought together in the right sequence to deliver and monitor progress over time.
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