|Author (Corporate)||European Commission: DG Economic and Financial Affairs|
|Series Details||COM (2020) 750|
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.
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.
|Subject Categories||Economic and Financial Affairs|
|Subject Tags||Economic Governance | Situation, European Semester, National Budgets|
|International Organisations||European Union [EU]|