Proposal for a Regulation on a governance framework for the budgetary instrument for convergence and competitiveness for the euro area

Author (Corporate)
Series Details COM (2019) 354
Publication Date 24/07/2019
Content Type

Summary:

Legislative proposal - put forward by the European Commission in July 2019 - for a Regulation laying down provisions for the governance framework relevant for the budgetary instrument for convergence and competitiveness for the Eurozone.

Further information:

Action was taken by the European Union to preserve the stability and integrity of the euro area in the aftermath of the financial and debt crises. These steps were since complemented and strengthened by different initiatives to address the vulnerabilities in the architecture of the single currency zone in the longer term. However, some relevant gaps remained. These were detected and addressed in the Five Presidents' Report and in the Reflection Paper on the Deepening of the Economic and Monetary Union (EMU). One of the lessons of the crisis was that Member States whose currency is the euro should further enhance the resilience of their economies, through targeted structural reforms and investment, so as to foster convergence and competitiveness of the euro area as a whole.

In this context, the Euro Summit mandated the Eurogroup in December 2018 to work on a number of issues to contribute to the EMU, and notably on the design, modalities of implementation and timing of a budgetary instrument for convergence and competitiveness for the euro area and of the Member States participating in the exchange rate mechanism (ERM II) on a voluntary basis. This instrument should be subject to criteria and strategic guidance from Euro area Member States. A way forward was outlined by the European Commission's Communication on 'Deepening Europe's Economic and Monetary Union'. The Eurogroup later agreed a Term Sheet on the key features of the budgetary instrument, which was welcomed by the Euro Summit in June 2019.

The draft law setting out the governance framework was adopted by the European Commission on 24 July 2019. This instrument was proposed to be included in the Reform Support Programme. The instrument aims to promote cohesion within the EU by providing euro-area Member States with financial support for reforms and investment. This Regulation should apply to the Member States whose currency is the euro.

Source Link https://eur-lex.europa.eu/legal-content/EN/HIS/?uri=COM:2019:354:FIN
Alternative sources
  • https://ec.europa.eu/info/files/regulation-governance-framework-budgetary-instrument-convergence-and-competitiveness-euro-area
Related Link(s)
Commentary and Analysis
EurActiv, 24/07/2019: Five things to know about the new pot to support EU economies https://www.euractiv.com/section/economy-jobs/news/five-things-to-know-about-the-new-pot-to-support-eu-economies/

News
Reuters, 24/07/2019: EU executive lays out rules to govern planned euro zone budget https://uk.reuters.com/article/idUKKCN1UJ16X

Official
European Parliament: Legislative Observatory: Procedure File for Proposal on Governance framework for the budgetary instrument for convergence and competitiveness for the euro area https://oeil.secure.europarl.europa.eu/oeil/popups/ficheprocedure.do?reference=2019/0161(COD)
European Parliament: Legislative Train Schedule: Governance framework for the budgetary instrument for convergence and competitiveness for the euro area (BICC) https://www.europarl.europa.eu/legislative-train/theme-new-boost-for-jobs-growth-and-investment/file-mff-bicc-budgetary-instrument-for-convergence-and-competitiveness
European Commission: Press Release, 24/07/2019: Commission proposes a governance framework for the Budgetary Instrument for Convergence and Competitiveness http://europa.eu/rapid/press-release_IP-19-4372_en.htm
European Commission: Speech, 24/07/2019: Vice-President Valdis Dombrovskis: College read-out and remarks on the governance framework for the Budgetary Instrument for Convergence and Competitiveness http://europa.eu/rapid/press-release_SPEECH-19-4650_en.htm

Subject Categories
Subject Tags ,
International Organisations