Review of the EU economic governance: Ownership by Member States and enforcement mechanism must go hand-in-hand

On Wednesday 26 April, the European Commission presented its legislative proposals to implement a comprehensive review of the EU economic governance framework. The proposals intend to amend and replace three of the six legislative proposals of the six-pack, which introduced in 2011 the set of rules for economic and fiscal surveillance.

The central objective of these proposals is to strengthen public debt sustainability by reducing public debt ratios in a more realistic, gradual and sustained manner in all Member states by integrating their fiscal, reform and investment objectives into a single medium-term plan. 

Commenting on the Package, Valeria Ronzitti, SGI Europe General Secretary, said:

“The European Commission delivered on their commitment to propose an ambitious review of the EU economic governance. The Commission also proved their openness and heard SGI Europe and the many other organisations which called, for many years, to correct the mistakes of the past, moving away from the one-size-fits-all approach and creating a framework for each Member State to plan the new investments and reforms needed in Europe properly.”

“The Commission proposes a new balance between the Member States’ ownership of their medium-term fiscal structural plans and new elements for effectively enforcing the rules. This was necessary to foster trust in the new rules and provide the co-legislators with a solid ground for their negotiations. It will be crucial for co-legislators to balance these elements and to make sure that the EU can, at the end of the process, effectively deliver on the investments needed to ramp up the EU’s resilience and strategic autonomy.”

“SGI Europe call on co-legislators to show unity in this discussion and be fully conscious of their responsibility to agree by the end of the year, ahead of the planned deactivation of the general escape clause of the SGP. Pragmatism must now guide the negotiations and allow the EU to create a new economic governance framework which does not limit but empower the green and digital transition.”

(Image: Source: EC - Audiovisual Service)