Proposal for a Regulation on the effective coordination of economic policies and multilateral budgetary surveillance and repealing Council Regulation (EC) No 1466/97

Author (Corporate)
Series Details COM (2023) 240
Publication Date 26/04/2023
Content Type , ,


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.

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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.

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Commentary and Analysis
European Trade Union Confederation (ETUC): Press Release, 26/04/2023: New EU economic rules bring back risk of austerity
Politico, 26/04/2023: It’ll be a tough job getting countries to approve EU’s spending rules reform

EUObserver, 06/04/2023: Germany pushes 'one-size-fits-all' EU spending rules
EurActiv, 07/04/2023: Germany wants to force debt cuts in EU spending rules
Politico, 25/04/2023: Rocky road ahead as EU reforms government spending rules
Associated Press (AP News), 26/04/2023: EU launches overhaul of euro rules as pandemic and war bite
Euronews, 26/04/2023: Brussels makes overture to Berlin with new EU rules to cut down deficit
Reuters, 26/04/2023: EU proposal on fiscal rules falls short of German requirements, finance minister says
EurActiv, 27/04/2023: New EU debt rules welcome, but tensions simmer on Germany’s new ‘benchmarks’

European Commission: Economy and Finance: Economic and fiscal governance
European Commission: Press Release, 26/04/2023: Commission proposes new economic governance rules fit for the future
European Commission: Questions and answers: Commission proposes new economic governance rules fit for the future (26 April 2023)
European Commission: Remarks by Executive Vice-President Dombrovskis and Commissioner Gentiloni at the press conference on the review of the EU's economic governance framework (26 April 2023)
EPP EP Group: Newsroom, 26/04/2023: Fiscal rules need teeth or they're trash

ESO Records
Proposal for a Council Directive amending Directive 2011/85/EU on requirements for budgetary frameworks of the Member States

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