Members' Research Service By / May 26, 2023

New economic governance rules [EU Legislation in Progress]

On 26 April 2023, the European Commission put forward three legislative packages to reorganise the EU’s economic governance framework.

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Written by Martin Höflmayr (2nd edition, updated on 09.11.2023).

On 26 April 2023, the European Commission published a package of three proposals to revise the EU’s economic governance framework: a regulation to replace the current preventive arm of the stability and growth pact (SGP), an amending Council regulation on the corrective arm of the SGP, and an amending Council directive to strengthen the role of independent fiscal institutions. The main proposal on the preventive arm is to be adopted through the ordinary legislative procedure with the Parliament and the Council as co-legislators.

On 26 April 2023, the European Commission published a package of three proposals to revise the EU’s economic governance framework: a regulation to replace the current preventive arm of the stability and growth pact (SGP), an amending Council regulation on the corrective arm of the SGP, and an amending Council directive to strengthen the role of independent fiscal institutions. The main proposal on the preventive arm is to be adopted through the ordinary legislative procedure with the Parliament and the Council as co-legislators.

On 12 October, the co-rapporteurs delivered a draft report on the proposal replacing the current ‘preventive arm‘ of the SGP. The report includes substantial changes to the proposal, including changes to the sequence setting a fiscal trajectory, re-defining and deleting safeguards and strengthening the role of the European Parliament.

Versions

(A) Proposal for a regulation on the effective coordination of economic policies and multilateral budgetary surveillance and repealing Council Regulation (EC) No 1466/97; (B) Proposal for a Council regulation amending Regulation (EC) No 1467/97 on speeding up and clarifying the implementation of the excessive deficit procedure; (C) Proposal for a Council directive amending Directive 2011/85/EU on requirements for budgetary frameworks of the Member States
Committee responsible:Economic and Monetary Affairs (ECON)COM(2022) 240;
COM(2022) 241;
COM(2023) 242;
26.4.2023
Rapporteurs:Esther de Lange (EPP, Netherlands);
Margarida Marques (S&D, Portugal)
2023/0138(COD);
2023/0137(CNS);
2023/0136(NLE)
Shadow rapporteurs:Billy Kelleher (Renew, Ireland),
Philippe Lamberts (Greens/EFA, Belgium)
Johan Van Overtveldt (ECR, Belgium),
Antonio Maria Rinaldi (ID, Italy),
José Gusmao (The Left, Portugal)
Ordinary legislative procedure (COD);
Consultation procedure;
Non-legislative enactment

Next steps expected: Vote in committee on draft report

Stage: Committee vote

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