Communication on the 2021 Draft Budgetary Plans: Overall Assessment

Author (Corporate)
Series Details COM (2020) 750
Publication Date 18/11/2020
Content Type

Summary:

Communication published by the European Commission on 18 November 2020, summarising the assessment of the 2021 Draft Budgetary Plans (DBPs) submitted by Eurozone Member States as required by Regulation (EU) No 473/2013. It was published as part of the Autumn Package of the 2021 European Semester.

Further information:

The assessment takes into account the crisis caused by the COVID-19 (coronavirus) pandemic, the high level of uncertainty and the economic downturn resulting from the outbreak. It is based on the latest Country-Specific Recommendations (CSRs), and it takes into account the activation of the general escape clause of the Stability and Growth Pact (SGP). As indicated in the Annual Sustainable Growth Strategy 2021, Member States should continue to provide targeted and temporary fiscal support in 2021 to effectively address the pandemic, sustain the economy, and support the recovery. When economic conditions allow, fiscal policies should aim at achieving prudent medium-term fiscal positions and ensuring debt sustainability, while enhancing investment.

The Commission assessed that all DBPs are overall in line with the CSRs. Most of the measures support economic activity against the background of considerable uncertainty. Some measures set out in the DBPs of France, Italy, Lithuania and Slovakia do not appear to be temporary or matched by offsetting measures. Lithuania has submitted its Draft Budgetary Plan based on a no-policy-change scenario and is invited to submit an updated Draft Budgetary Plan. For Belgium, France, Greece, Italy, Portugal and Spain, given the level of their government debt and high sustainability challenges in the medium-term before the outbreak of the COVID-19 pandemic, it is important to ensure that, when taking supporting budgetary measures, fiscal sustainability in the medium-term is preserved.

Source Link https://eur-lex.europa.eu/legal-content/EN/ALL/?uri=COM:2020:750:FIN
Related Link(s)
Commentary and Analysis
EPRS: Briefing, November 2020: Key figures of 2021 Draft Budgetary Plans https://www.europarl.europa.eu/thinktank/en/document.html?reference=IPOL_BRI(2020)659613

Official
European Commission: European Semester: Draft budgetary plans 2021 https://ec.europa.eu/info/business-economy-euro/economic-and-fiscal-policy-coordination/eu-economic-governance-monitoring-prevention-correction/stability-and-growth-pact/annual-draft-budgetary-plans-dbps-euro-area-countries/draft-budgetary-plans-2021_en

ESO Records
2021 European Semester Autumn Package https://www.europeansources.info/record/2021-european-semester-autumn-package/

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