Commission publishes Communication on enhancing economic policy coordination for stability, growth and jobs

Communication on enhancing economic policy coordination for stability, growth and jobs and tools for stronger EU economic governance

The purpose of the Communication is to develop further the policy ideas set out in the Commission Communication of 12 May 2010[1] and build on the orientations agreed at the 17 June 2010 European Council, reflecting the progress to date of the Task Force on economic governance. The Communication also responds to the invitation of the European Council to the Task Force and the Commission to develop its orientations further and make them operational.

In this context, this Communication:

• Develops the proposals for greater economic policy co-ordination and surveillance set out in the Commission's 12 May Communication on reinforcing economic policy coordination into concrete proposals by (i) addressing imbalances through stronger macroeconomic surveillance, including alert and sanction mechanisms; (ii) strengthening national fiscal frameworks by specifying minimum requirements for domestic fiscal frameworks, and notably moving from annual to multi-annual budgetary planning; (iii) strengthening the Stability and Growth Pact, in particular by focusing on the issue of debt dynamic as well as deficits;

• Sets out effective enforcement mechanisms to ensure that Member States will act in compliance with the EU framework they have agreed. Where developments in Member State economies pose a risk to the overall development of the Union, a series of preventive and corrective measures are proposed, including a range of sanctions that could be applied where breaches occur.

• Proposes the establishment of a European semester for policy co-ordination. The process and timing are explained. The European Semester will provide a European input to national policy decisions, leading to more effective ex-ante policy co-ordination. This also applies to the structural reforms and the growth-enhancing elements of the Europe 2020 strategy.

The Commission will make the necessary formal proposals contained in this Communication by end-September.

>>> COM(2010) 367/2 - Enhancing economic policy coordination for stability, growth and jobs – Tools for stronger EU economic governance(76 kB)  

>>> Annex: proposed amendments to the Code of Conduct for the Stability and Growth Pact -  Specifications on the implementation of the Stability and Growth Pact and Guidelines on the format and content of Stability and Convergence Programmes(49 kB)  

>>> Timeline - European semester of policy coordination(21 kB)  

>>> Press release IP/10/859 EU economic governance: the Commission proposes a reinforced macro-economic, budgetary and structural surveillance  

>>> Memorandum MEMO/10/288 A toolbox for stronger economic governance in Europe