|Author (Corporate)||European Commission: DG Economic and Financial Affairs|
|Series Details||COM (2023) 240|
|Content Type||Blog & Commentary, News, Policy-making|
Legislative initiative - tabled by the European Commission on 26 April 2023 - seeking to replace Council Regulation (EC) No 1446/97 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies.
Regulation (EC) No 1466/97 set out the rules aimed at the monitoring and coordination of budgetary policies of the Member States of the European Union (EU), in what is known as the preventive arm of the Stability and Growth Pact (SGP). It established the European Semester cycle. This framework was later amended by Regulation (EU) No 1175/2011 to take into account the lessons of the global financial crisis and the Euro area sovereign debt crisis, as part of the so-called Six-Pack.
The original Regulation contains a review clause whereby every five years the European Commission is required to publish a report on its application. The latest review was undertaken as part of the review of the EU's economic governance framework, launched in February 2020. It revealed a number of strengths, but also a series of shortcomings of the framework. In November 2022, the Commission put forward its orientations for a reform of the framework. These envisaged a stronger national ownership, a simplified framework and a move towards a greater medium-term focus, combined with stronger and more coherent enforcement.
The draft law was adopted by the European Commission on 26 April 2023 as part of a legislative package seeking to reform the EU's fiscal framework.
|Subject Categories||Economic and Financial Affairs|
|Subject Tags||Economic Governance | Situation, European Semester|
|Keywords||Stability and Growth Pact [SGP]
|International Organisations||European Union [EU]|