The crisis has exposed gaps in the current governance system and showed that existing instruments for economic policy coordination need to be used more fully. The Commission has put forward a comprehensive and coherent package of reforms that will strengthen the Stability and Growth Pact (SGP), particularly through an increased focus on public debt and fiscal sustainability, the extension of surveillance to macroeconomic imbalances and by making enforcement more effective through the use of sanctions and incentives.

Klaus Regling was appointed chief executive officer of the European Financial Stability Facility (EFSF) on 1 July. The €440 billion facility is based in Luxembourg and its board comprises representatives from the 16 euro-area governments. From 2001 to 2008 Mr. Regling was the Director-General of ECFIN.

A second EU-wide stress test exercise has confirmed the overall resilience of the EU banking system. Nonetheless, bank capital and liquidity requirements will be increased and the Commission will propose further reforms in the areas of crisis management, derivatives and short-selling.

Tax reform is a potential way of supporting budgetary consolidation while enhancing growth. A shift from direct to indirect forms of taxation and the identification of new sources of tax revenue such as financial sector taxation could help boost revenue.

A joint EC/IMF/ECB first review mission under the Economic Adjustment Programme visited Athens from 26 July to 5 August 2010. The report by European Commission staff provides a detailed assessment of compliance, an overview of challenges faced by Greece and a summary of the main findings of the mission.

The Belgian Minister for Finance, Mr. Didier Reynders, will present before the European Parliament’s ECON Committee the priorities of the Belgian presidency in the area of economic and monetary affairs. Mr. Reynders met a delegation of ECON members in June to discuss these priorities ahead of the Belgian presidency.

The Council adopted its position on the EU draft budget for the financial year 2011, approving the targeted cuts in the Commission’s proposal while ensuring appropriate funding for EU priorities, in particular economic recovery. The Council position amounts to €141,777 billion in commitment appropriations and €126,527 billion in payment appropriations, corresponding to 1.02% of the Gross National Income (GNI) of the EU.

At their meeting on 7 September, EU finance ministers exchanged of views on the coordination of levies on banks and other financial institutions as part of a new crisis management framework at EU level for the financial industry. In the wake of the financial crisis, a number of countries have introduced levies on banks or are in the process of doing so, though the nature of those levies differs from one country to another.

The unprecedented EUR 110 billion financial support to Greece is based on strict conditions, a comprehensive programme of reforms and continuous monitoring. Ultimately, the Greek economy will recover as of 2012, the deficit will return to sustainable levels while the government debt ratio will fall from 2014 on.

Europe has managed its response to the crisis well, according to speakers at the 11th Brussels Economic Forum. But the crisis is far from over. The Union must now embark on an ambitious programme of reforms to improve fiscal sustainability, productivity and economic governance.

Twenty years of hard grind reducing government debt have been wiped out in less than two. Crisis-related lower tax revenues and a GDP drop beyond expectations are widely seen as the major reasons for this situation. But a proposal for a new system of early budget coordination among governments called a “European Semester” could prevent such crises from emerging in the future.

Although euro-area Member States share a single currency, interpretations of what its legal tender status means still differ confusingly from one country to another.

Euro-area leaders agreed at the European Council meeting held on 25 March on coordinated financial support to help Greece finance its debt.

Divergences in the competitive positions and current-account balances of euro area Member States have been building up over the past decade.

Olli Rehn, the new Economic and Monetary Affairs Commissioner, took office on 10 February 2010 following endorsement of the whole Commission line-up by the European Parliament.

President José Manuel Barroso announced the portfolio responsibilities for the next Commission on 27 November.

EU finance ministers meeting in the ECOFIN Council on 2 December opened excessive deficit procedures for Austria, Belgium, the Czech Republic, Germany, Italy, Slovakia, Slovenia, the Netherlands and Portugal, on the basis of a Commission recommendation.

At the same meeting, the ECOFIN Council agreed on the creation of three European authorities for the supervision of banking, insurances and pensions, which together with the new European Systemic Risk Board, complete the new supervisory framework to be put in place over the course of 2010.

In his quarterly monetary dialogue with the European Parliament, held on 7 December, ECB President Jean-Claude Trichet said that he expected the euro-area economy to grow “at a moderate pace” in 2010 but warned that any growth would be “surrounded by a high level of uncertainty”.

Complete recovery of the real economy depends on restoring the financial system to full health.

In a referendum held on 3 October, Irish voters approved the Lisbon Treaty by a margin of 67.1 to 32.9 per cent, representing a swing of more than 20 per cent from the outcome registered in June 2008, when an earlier version of the Treaty was rejected by 53.4 per cent.

The EU unemployment rate is expected to increase to above 10% in 2009, reversing the downward trend which started a decade ago. Nonetheless, there is some cause for hope.

The EU’s response to the global downturn was immediate and forceful, and has included fiscal support amounting to 5% of GDP.

Following the parliamentary elections in June, the EP’s standing committee on economic and monetary affairs (ECON), got a makeover with new members and a new chair ...

On 2 September 2009, Swedish Minister of Finance Anders Borg presented the Swedish Presidency’s priorities in the area of Economic and Financial Affairs to the new ECON Committee.

European Union crisis funding is available to Member States in distress. Such is the severity of the financial whirlwind that has hit the Continent ...

Public finance throughout the European Union is under unprecedented stress. Collapsing economic activity has sharply reduced tax revenues ...

Amidst an economic downturn that is deeper and more protracted than originally expected, the European Commission is advancing a coherent programme for economic recovery ...

While economic forecasters now believe the worst is behind us, speakers at the 10th annual Brussels Economic Forum nonetheless urged Europe to make broad and lasting reforms ...

At its regular meeting on 5 May, the ECOFIN Council adopted regulations that facilitate access to grants from the European Social Fund ...

The European Parliament adopted tougher bank capital rules on 6 May. The new rules are designed to restore confidence to markets shaken by the financial crisis ...

Meeting on 9 June, the Economic and Financial Affairs (ECOFIN) Council approved proposals by the Commission on reform of the EU’s supervisory framework ...

Meeting in Brussels on 18-19 June, the European Council supported the creation of a European Systemic Risk Board which will monitor and assess potential threats ...

Now that the financial crisis has infected the wider economy, Europe and many other parts of the world are facing up to the prospect of a deeper and more drawn-out recession. But timely action is supporting global demand and has so ...

Every year, DG ECFIN’s Annual Research Conference presents current research and insight into issues relating to Europe’s economy. Last year’s event, held on 16-17 October, heard from economists from DG ECFIN, universities ...

Meeting on 11 March, the European Parliament adopted a report on the European Economic Recovery Plan prepared by MEP Elisa Ferreira which stresses the need for coordinated action between the Member States and makes a series of recommendations ...

In a Communication published on 4 March, the Commission called for a united EU front in the fight against the crisis and the acceleration of financial market reforms in line with the report prepared by an expert group headed by Jacques ...

As the financial crisis infects the economy at large, the EU has unveiled its economic action plan to give the European economy a much-needed boost. This is the latest in a series of robust coordinated measures to stave off a deepening ...

This is how Commission President José Manuel Barroso described the European Economic Recovery Plan – proposed by the Commission on 26 November 2008. He also underlined that exceptional times call for exceptional measures. ...

Speaking at the 2nd Demography Forum, on better societies for families and older people, Commissioner Joaquín Almunia described ageing as one of the greatest forces that will reshape economies and societies in the 21st century. ...

DG ECFIN has created an on-line collection of Communications, press releases, press packs and documents relevant to the ongoing economic crisis. Arranged chronologically, the collection is focused on international and EU-level policy ...

On 4 December, Marco Buti was appointed Director-General of DG ECFIN. A trained economist with degrees from Florence and Oxford, Mr Buti – an Italian national – has spent much of his career within the DG, most recently ...

The European Council meeting under the French Presidency on 11-12 December supported the need for a strong economic stimulus in response to the financial crisis and approved the Commission’s recovery plan. The current crisis ...

MEPs set out their views on how economic and monetary union could be developed in the years to come in a new ...

Food and energy prices have reached troubling highs. In two Communications, the Commission has come up with a package of recommended measures that deal both with the immediate crisis and pave the way, in parallel with other EU policies, ...

Public finances have improved significantly in the EU. However, the current economic downturn, demographic ageing, and global competition need addressing through a comprehensive fiscal policy approach that raises the quality of public ...

Held on 16-17 October 2008, the 5th DG ECFIN Research Conference took as its topic: ‘Boosting growth and productivity in an open Europe: the role of international flows of goods, services, capital and labour‘. Increasing ...

To mark its 10th anniversary, the ECB published a special edition of its monthly bulletin. It reports on the balance of the first ten years of a European Central Bank and also looks at challenges ahead. Chapters cover the institutional ...

“The fall in oil and food prices is going in the right direction and this should help to brake inflation,” said Eurogroup President Jean-Claude Juncker at the Eurogroup/ECOFIN meetings on 12-13 September, although he went ...

As part of the regular exchange of views between the European Central Bank and the members of the Economic and Monetary Affairs Committee of the European Parliament (ECON), ECB President Jean- Claude Trichet addressed the ECON committee ...

Organised by DG ECFIN, the annual Brussels Economic Forum (BEF) brings together EU leaders, economists and many other stakeholders to discuss major issues in European economics and economies. This year’s BEF, held on 15-16 May, ...

The overall mood was one of resounding success as the Brussels Economic Forum got under way with its first session, ‘Growth and Employment in Europe – Assessing Ten Years of EMU’. Figures past and present from the ...

Session II of the Brussels Economic Forum explored the global position of the euro, charting its rise to international prominence, its current status, and the opportunities and challenges which lie ahead. Leading figures from the world ...

The third session of the Brussels Economic Forum looked at how the euro area can be consolidated. Speakers considered issues such as economic policy governance, and the structural reforms needed to ensure the euro delivers growth according ...

‘The euro: international implications and relevance for Latin America’ was the title of a conference held in São Paulo on 17-18 March. Commission President José Manuel Barroso gave a keynote speech (in his native ...

On 11 June the Commission issued its ninth annual ‘Public Finances in EMU’ report. This analyses recent budgetary developments and assesses the outlook over the coming year, for both the euro area and the EU, and the individual ...

In his regular dialogue with the Economic and Monetary Affairs Committee (ECON) of the European Parliament on 26 March, ECB President Jean-Claude Trichet predicted that the current period of relatively high inflation rates will be ...

On 7 April the ECON Committee met the Eurogroup President Jean-Claude Juncker for their first exchange of views this year. Juncker noted that the economic fundamentals of the euro area remained solid and had proved resilient thanks ...

As we celebrate the first decade of Economic and Monetary Union (EMU) we should remember that the launch of EMU and the euro ten years ago marked a watershed in European integration. ...

Eurogroup chair and Prime Minister of Luxembourg Jean-Claude Juncker told the European Parliament’s Economic and Monetary Affairs committee of his concerns at rising inflation and warned against ‘benign neglect’ as ...

The euro area is heading south and will embrace Malta and Cyprus on 1 January 2008, bringing the countries using the single currency to 15. To prepare Malta for the euro changeover, DG ECFIN and the Maltese government, together with ...

DG ECFIN’s annual research conference took place in Brussels on 11-12 October 2007. The assembled experts and policy-makers discussed the issues raised by European monetary union and the introduction of the euro under the ...

The Ecofin Council’s informal meeting of 14 and 15 September 2007 in Porto, Portugal, brought together finance ministers and central bank governors from the 27 Member States to discuss the recent wave of volatility sweeping ...

In August, the European Central Bank took a series of extraordinary measures to inject liquidity – some €300 billion worth – into short-term financial markets and restore general investor confidence, as the crisis ...

Favourable economic conditions over the past couple of years have provided Member States’ governments with a precious opportunity to improve the sustainability of their budgets. Whilst those with excessive deficits have done ...

The European Commission’s ‘Annual statement on the euro area’ describes the healthiest economic growth for the 13 countries using the single currency since the turn of the millennium. It urges them to use these ‘good ...

In a keynote speech at the Athens Economist Conference in April, Commissioner for Economic and Monetary Affairs Joaquín Almunia assessed the successes of EMU and the challenges ahead in the coming years. “EMU has been a ...

This year’s BEF, organised by DG ECFIN on 31 May and 1 June, brought over 1,000 participants together to hear about global imbalances, adjustment dynamics under EMU, and the economic catching-up and convergence process in the ...

The Economic and Financial Affairs Council held on 8 May under the German Presidency called on Member States to step up their efforts to raise households’ awareness of and participation in non-statutory pension schemes. This ...

Meeting on 20 April, the Eurogroup ministers – from the euro-area Member States – discussed budgetary policies ahead of the start of national budgetary preparations for 2008. This was the first time such a discussion had ...

As part of the economic dialogue between the Commission and the European Parliament, Commissioner Joaquín Almunia met the European Parliament's ECON Committee on 7 May to present the Annual Statement and Report on the Euro Area. ...

As Europe celebrates its 50th anniversary, European Economy News asks the Commissioner for Economic and Monetary Affairs for some reflections on both past achievements and future propects....

This article looks back at the ups and downs of economic growth in Europe over the last 50 years: the dynamism of the post-war period and the sluggish performance of the later decades; and calls for a change of emphasis from stability ...

This article notes that there is much to celebrate on this 50th anniversary of European economic and monetary integration. And although ensuring satisfactory growth remains a considerable challenge, the successes of European integration ...

This contribution looks at how economic thinking within the Commission has evolved over time, drawing on the main European schools of thought yet always remaining close to the policy-making process. The two principal concerns have ...

An overview of the EU’s major political, economic and monetary achievements, from the signature of the Treaty of Rome in 1957 to the single currency of 13 Member States in 2007....

“Both short-term, and more importantly for businesses, long-term interest rates are at historically low levels, even by German standards,” Commissioner Joaquín Almunia told business leaders from the Nordrhein-Westfalen ...

The efficiency of spending on education and R&D was the topic of a joint ECFIN-German Presidency workshop held in Brussels on 12 March. Deputy Director-General of DG ECFIN Marco Buti opened the workshop and participants heard presentations ...

The first meetings of the Eurogroup and the ECOFIN Council in January 2007 were a cause for celebration. The Eurogroup of euro-area Member States grew by one as Slovenia took a seat at the euro-area top table, and the accession of ...

Whether the euro area is converging or drifting apart was the topic of a debate with national parliaments hosted by the Economic and Monetary Affairs Committee of the European Parliament on 28 February 2007. Nobel prize-winning economist ...

In a draft report prepared for the European Parliament on the ‘Public Finances in EMU 2006’ publication (prepared by DG ECFIN), rapporteur Kurt Joachim Lauk of the EP’s ECON Committee largely agrees with the Commission’s ...

The EU Economy Review is published annually by DG ECFIN and each year it presents an in-depth study of a topical issue in EU and euro-area economics. In this year’s Review, DG ECFIN economists take a close look at ‘adjustment ...

How does the nature of national fiscal institutions and fiscal rules affect the outcomes of national budgets? This question was addressed on 24 November 2006 at a DG ECFIN workshop where participants considered to what extent the wider ...

On 5 December 2006 the European Commission adopted a Convergence Report assessing progress with convergence towards the requirements of EMU in nine Member States (the Czech Republic, Estonia, Cyprus, Latvia, Hungary, Malta, Poland, ...

In plenary session in Strasbourg on 14 November the European Parliament passed a resolution on the 2006 annual report on the euro area prepared by DG ECFIN on behalf of the Commission. The resolution was based on a report by José ...

“Together Europe can succeed” according to the motto of the German EU presidency, scheduled for the first half of 2007. Pulling together means building on Europe’s shared historical and cultural foundations. “Europe ...

Europe’s social model is facing perhaps its biggest challenge: working towards the Lisbon Agenda of more growth and jobs with a workforce that is ageing. Globalisation, new technology, ageing populations and changes to the family ...

Ageing populations pose a major challenge to public finances across the EU. Under current policies government debt is set to rise from 63% of GDP today to nearly 200% by 2050. But, if resolute action is taken to ensure fiscal consolidation ...

Every year, DG ECFIN hosts a research conference on a topical subject in European economics. On 7 and 8 September 2006, economics researchers from the EU and the US gathered in Brussels for the third annual DG ECFIN research conference ...

Marco Buti was recently appointed Deputy Director-General at ECFIN. An Italian by birth, Mr Buti is no stranger to the DG having been Director of Economies of the Member States since 2003 and, beforehand, head of unit for public finances ...

In a globalising economy where barriers to foreign investment and the movement of goods are coming down, corporations are increasingly tending to shop around when deciding where to locate their operations. One important factor in their ...

The annual Brussels Economic Forum brings together politicians, economists, academics and civil society to discuss timely and important issues facing the European Union, with an emphasis, naturally, on the economics. The 2006 ...

The first ‘Annual Statement on the euro area’ takes stock of the euro-area economy at a time when economic recovery is taking hold and ‘good times’ seem to be on the horizon. As the economic situation evolves, ...

Last winter, fears grew of a possible avian flu pandemic sweeping the world. In the event, as birds migrated in advance of the summer, the number of cases of sick birds remained small, and as yet there has been no case of human-to-human ...

May 2006 - A Commission report evaluating the benefits of the recent enlargement of the EU concludes that the entry of ten new Member States has been a win-win event for all. Rapid growth in the EU-10 is bringing higher ...

8 May 2006 - Economic growth is expected to rebound in 2006 to 2.3% in the EU and to 2.1% in the euro area, up from 1.6% and 1.3% in 2005, according to the latest economic forecasts from DG ECFIN published on 8 May. ...

June 2006 - In June, DG ECFIN published the annual report on public finances in EMU. As economic growth appears to be taking off, so it is time for the Member States to begin to reduce the budget deficits that arose from ...

12 June 2006 - ‘Adjusting to globalisation: promoting new areas of specialisation’ was the title of a workshop organised by DG ECFIN on 12 June. The countries’ experiences discussed at this workshop have ...

22-23 May 2006 - This was the title of the OECD Forum held on 22 and 23 May in Paris. Participants heard from ECB President Jean-Claude Trichet and others on topical matters such as solving global economic imbalances, managing pandemics and natural ...

May 2006 - In May, the European Parliament adopted a resolution on public finances in EMU based on a report prepared by MEP Dariusz Rosati of the Committee on Economic and Monetary Affairs (ECON). MEPs expressed concern about persistently low ...

…is how the guidebook describes the Mikhailovsky Castle in Saint-Petersburg where the Commission and the EU Presidency joined finance ministers from the G8 on 9-10 June to prepare the economic aspects of the 15-17 July Summit ...

The Stability and Growth Pact (SGP) coordinates government fiscal policies. While it covers the EU as a whole, it is of particular importance for the euro area. The SGP contains common rules that ensure government debt and deficits ...

31 March 2006 - A major report on the impact of ageing on public expenditure has been submitted to the Council of Ministers. Prepared by DG ECFIN and the Economic Policy Committee (EPC), the report details new projections on the ageing-related costs ...

28 March 2006 - Reforms to labour, product and capital markets are vital for boosting growth and employment in the EU – and they need political support and careful planning to minimise disruptive consequences. At a DG ECFIN workshop held on ...

1 February 2006 - This was the subject of a presentation by Klaus Regling, Director-General of DG ECFIN, to a seminar of Belgian and Dutch economic planners on 1 February. Improvements are needed, he said, because debt has been increasing for 30 years, ...

January 2006 - Labour and capital flows in Europe following enlargement was the topic of a conference organised by the National Bank of Poland together with the Joint Vienna Institute (JVI) and the IMF. Held in Warsaw this January, the conference ...

February 2006 - ‘Going for growth one year on’ is the title of the OECD’s update to its annual ‘Going for Growth’ publication. Launching the second issue in London in February, Jean-Phillipe Cotis, the Chief Economist ...

April 2006 - As part of a regular series of ‘monetary dialogues’, European Central Bank President Jean-Claude Trichet addressed the Economic and Monetary Affairs Committee of the European Parliament (ECON). Despite favourable conditions ...

April 2006 - Hosted by the EP ECON Committee in February, an inter-parliamentary forum of European and national parliamentarians heard keynote speeches from DG ECFIN Commissioner Joaquín Almunia, OECD Chief Economist Jean-Phillipe Cotis, and ...

While the European Social Model is a topical subject, in fact there does not appear to be any single model. Instead there are a wide variety of models in the Member States, reflecting different histories, circumstances and political ...

November 2005 - The Economic Policy Committee (EPC), composed of officials from the Member States, DG ECFIN and the ECB, is producing a new set of long-run budgetary projections for all 25 Member States, covering pensions, health care, long-term care, ...

24 October 2005 - In a speech to the Austrian Chamber of Labour entitled ‘Europe: the best way towards social justice in the global world’, Commissioner Joaquín Almunia stated that globalisation and ageing are the main challenges facing ...

For 2006 - Austria takes on the Presidency of the European Council for the first six months of 2006, followed by Finland from 1 July 2006. For the ECOFIN Council the two Presidencies have outlined their main priorities in 2006. These aim to enhance ...

6 December 2005 - The monthly Economics and Financial Affairs Council (ECOFIN) is composed of economics and finance ministers from the Member States and Commission representatives. The earlier November ECOFIN Council rapped Hungary for not taking earlier ...