The MED is a high level forum for the exchange of views between the Council, Commission, European Central Bank and social partners. It was instituted by the June 1999 Cologne European Council to contribute to the growth and stability orientation of the macroeconomic framework in the EU.
The MED is designed to ensure mutually supportive interaction between wage developments and monetary, fiscal and structural policies conducive to non-inflationary growth. It is based on the principle that key macroeconomic policy stakeholders and decision makers on the one hand, and those responsible for wage formation (management and labour organisations) should have a proper understanding of each other's positions and constraints.
The MED takes place twice a year and has a two-layer structure, political and technical. The political dialogue is organised by a representative of the country holding the presidency of the EU. It is preceded by a preparatory technical meeting, for which the Economic Policy Committee sets the framework and DG ECFIN provides the secretariat.