The Commission has presented its Alert Mechanism Report 2016, the annual starting point of the Macroeconomic Imbalances Procedure. Based on a scoreboard of indicators, the Alert Mechanism Report identifies countries for which a closer analysis (in-depth review) is deemed necessary. The outcome of these in-depth reviews forms the basis for further steps under the Macroeconomic […]Read More..
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In a report published on 19 April 2016, the European Court of Auditors is critical of the way the European Commission implements the excessive deficit procedure, and argues that the application lacks consistency and transparency and that the Commission does not adequately record its underlying assumptions or share its surveillance findings for the greater benefit […]Read More..
The European Commission has adopted a proposal for a regulation establishment a European Deposit Insurance Scheme (EDIS) based on article 114 TFEU. The would be mandatory for euro area Member States and open to non-euro area Member States willing to join the banking union. See also the Commission's press release and these factsheets prepared by […]Read More..
A team from the European Commission, in liaison with staff from the European Central Bank (ECB), carried out the fifth post-programme surveillance visit to Spain on 11-13 April 2016. The European Stability Mechanism (ESM) participated in the meetings on aspects relating to its early warning system. The mission was limited in scope, and mainly focused […]Read More..
After French Prime Minister Valls announced that increased security spending will prevent France from respecting its EU budget deficit target, Commissioner for Economic and Financial Affairs Moscovici commented that "The security of citizens is the absolute priority, and the commission will show full understanding." See for further reporting Reuters, EUObserver and The Guardian.Read More..
In its 2016 European Semester Country Specific Recommendations on 18 May 2016, the European Commission has proposed to give both Spain and Portugal an extra year to correct its excessive deficit under the excessive deficit procedure: "As regards Portugal and Spain, the Commission recommends to the Council to recommend a durable correction of the excessive […]Read More..
The Commission has published its opinions on the national draft budgetary plans. All eurozone member states apart from Portugal (elections), Greece and Cyprus (both subject to a macroeconomic adjustment programme) had presented their draft budgetary plans in accordance with Regulation No 473/2013 (two-pack). The Commission urges Portugal to submit a draft budgetary plan as soon […]Read More..
Chris Koedooder is a PhD Researcher at the Amsterdam Centre for European Law and Governance (ACELG), University of Amsterdam. Late last year, the European Commission finally unveiled its proposal for a Council decision on unified representation of the Eurozone in the IMF. The proposal had been a long time in the making. It followed […]Read More..
The European Commission and the Greek authorities have presented their plan for technical cooperation in support of structural reforms. The plan defines the general context of the cooperation, the guiding principles governing the technical cooperation, the areas to be covered by the technical support, specific principles regarding working methods, principles related to the envisaged financing of technical support, and […]Read More..
7 July: Commission recommends Council decision establishing no effective action by Spain and PortugalJuly 7, 2016
The European Commission has adopted two recommendations to the Council establishing that both Spain and Portugal have failed to take effective action in light of their respective Council recommendations of 21 June 2013. Should the Council take over the recommendation of July 7, the Commission will have to propose what consequences it should have in […]Read More..
In a follow up to the Five President's Report of June 2015, the European Commission has today presented several new initiatives for the short term development of EMU, regarding such issues as external representation of the euro area at the IMF, a further streamlining of the European Semester, and improvement of the tools of economic […]Read More..
Both countries have submitted to the Commission their arguments for only imposing symbolic sanctions, after the Council had decided on12 July thar Spain and Portugal had failed to take effective action on the Council recommendations of June 2013. According to the SGP rules, both countries had a week to convince the Commission not to impose a […]Read More..
As part of the so-called two-pack obligations, Member States of the euro area are required to submit annually to the Commission and to the Eurogroup a Draft Budgetary Plan presenting by 15 October the main aspects of the budgetary situation of the general government and its subsectors for the forthcoming year. Because of the general […]Read More..
The European Commission, making use of discretionary powers it has under the Six Pack of economic governance legislation, recommends not to impose fines (technically: to impose fines of zero euro) on Spain and Portugal because of the fiscal efforts both countries have made (although not meeting the targets) and the social challenges they are facing. The […]Read More..
These three member states have presented their draft annual budgetary plans well before the deadline of 15 October set by the European governance legal framework (article 6(1) Regulation (EU) 473/2013).Read More..
Following the Council decision of 12 July 2016 that both Spain and Portugal had under the excessive deficit procedure failed to take effective action in response to Council recommendations under article 126(8) TFEU, on 3 October a structured dialogue took place between the Commission and EP on one of the consequences of this decision, namely suspension […]Read More..
All euro area member states except for Greece and Cyprus (currently subject to a macroeconomic adjustment programme) have submitted their annual draft budgetary plans in accordance with article 6(1) of Regulation (EU) No. 473/2013. The Commission now has to adopt an opinion on the draft budgetary plans as soon as possible and in any event […]Read More..
The European Commission has asked several euro area member states for clarification on their draft budgetary plans for 2017, relating to issues such as reassurances on the behaviour of incoming governments, clarification on demands for flexibility, compliance risks with the Stability and Growth Pact (SGP). All member states apart from Greece presented their plans in accordance with article 6(1) […]Read More..
16 January 2015: European Commission issues guidance on how it will apply the SGP to foster reform and investmentJanuary 16, 2015
On 13 January 2015 the European Commission has presented guidance on how it plans to apply the existing Stability and Growth Pact rules to strengthen the link between structural reforms, investment and fiscal responsibility in support of jobs and growth. See the press release at: http://europa.eu/rapid/press-release_IP-15-3220_en.htmRead More..
In its assessment of the draft budgetary plans of the euro area Member States (non taking into account Greece which is not subject to the same procedure because of its financial assistance programme), the European Commission has found no cases of serious non-compliance with the requirements of the Stability and Growth Pact (SGP). However, in […]Read More..
Tomas Dumbrovsky (J.S.D. Candidate at the Yale Law School, Assistant Professor at Charles University in Prague and author of the Reports on the Czech Republic and Slovakia) (This comment first appeared on I-CONnect: http://www.iconnectblog.com/2015/07/europeanizing-the-eurozone/) The way the Greek debt crisis was handled in the last weeks has been a public relations nightmare. The more or […]Read More..
In the words of the European Commission: "From an economic perspective, the overall euro area stance should be differentiated depending on the situations of countries in terms of sustainability and stabilisation. A number of Member States in the south-east of the fiscal map still have significant consolidation needs.The south-west quadrate shows Member States, which have […]Read More..
In its Conclusions on the Annual Growth Strategy, the Council agreed "on the broad policy priority outlined by the Commission on which national and EU level effrots should concentrate in 2016: Relaunching investment, pursuing structural reforms to modernise our economies, and responsible public finance". In its Conclusions on the Alter Mechanism Report 2016, the Council […]Read More..
The Commission conclused that Spain, which is currently in the corrective arm, is broadly compliant with the Stability and Growth Pact in 2017; Lithuania, which is in the preventive arm, instead is deemed at risk of non-compliance pending the assessment of requested flexibility. Read the press release here.Read More..
On 5 February the European Commission has presented its opinion on the Portuguese draft budgetary plans for 2016, calling for extra measures, but not requiring Portugal to submit a new draft. Portugal, due to general elections in October 2015, had failed to comply with the obligation to submit its plans by 15 October (Regulation 473/2013), […]Read More..
In its 2017 winter forecast, which is at the basis of its economic policy decisions in the European economic governance framework, the European Commission concludes that the European economic recovery is expected to continue this year and next: for the first time in almost a decade, the economies of all EU Member States are expected […]Read More..
In a statement following its 11 February meeting, the Eurogroup supports the Commission's view on the Portuguese draft budgetary plans for 2016. The full statement by the Eurogroup reads: "Today, the Eurogroup discussed the Draft Budgetary Plan (DBP) of Portugal, submitted on 22 January, on the basis of the Commission's Opinion, which was published on […]Read More..
The High Level Group on Own Resources, led by former Commissioner and Italian Prime Minister Mario Monti, and established in February 2014 to reflect on finding more transparent, simple, fair and democratically accountable ways to finance the EU, published its final report with suggestions on the future financing of the EU. Among the many recommendations […]Read More..
The European Commission has presented a proposal for a regulation of the European Parliament and the Council on the establishment of the Structural Reform Support Programme for the period 2017-2020. Member States may benefit from support in addressing challenges as regards the design and implementation of institutional, structural and administrative reforms. The intention is to […]Read More..
Staff from the European Commission, in liaison with staff from the European Central Bank (ECB), visited Portugal from 25 January to 2 February to conduct the third post-programme surveillance (PPS) mission. On 4 February the institutions issued a joint statement: "Economic and financial conditions in Portugal have remained broadly stable since the conclusion of the second post-programme […]Read More..
The European Commission has launched the annual economic governance cycle of 2016 presenting the Annual Growth Survey. The Commission recommends building on the three main pillars for the EU's economic and social policy: re-launching investment, pursuing structural reforms, and responsible fiscal policies. The package presented reflects the new approach to the European Semester set out […]Read More..
In its 2016 in-depth review, the Commission considered that 12 Member States are deemed to experience imbalances (out of the 18 countries identified for an in-depth review (IDR) in the Alert Mechanism Report (AMR) of 26 November 2015). Bulgaria, Croatia, France, Italy and Portugal remain in the excessive imbalances category without triggering the Excessive Imbalances […]Read More..