The Commission issues guidance on how it will apply the SGP rules to strengthen the link between structural reforms, investment and fiscal responsibility in support of jobs and growth.
A review of the ‘Six Pack’ and ‘Two Pack’ rules, which was called for in the legislation, determined that the legislation had contributed to the progress of fiscal consolidation in the EU. The review highlighted some strengths as well as possible areas for improvement, which will be discussed with the European Parliament and Member States.
The importance of the budgetary targets set by the SGP’s Preventive Arm (the Medium-Term Objectives), are strengthened by a law known as the ‘Fiscal Compact’, which is part of an inter-governmental treaty, the Treaty on Stability, Coordination and Governance (TSCG).
Adherence to the SGP is further strengthened by new laws, known as the ‘Two Pack,’ which reinforces economic coordination between Member States and introduces new monitoring tools. Further details on the implementation of the ‘Two Pack’ provisions are laid down in ‘Code of Conduct’ (last revised in November 2014).
The SGP is made more comprehensive and predictable with a major enhancement of the EU’s economic governance rules through a collection of new laws, known as the ‘Six Pack’. The monitoring of both budgetary and economic policies is organised under the European Semester and further details on the implementation of the SGP’s rules are laid down in a ‘Code of Conduct’ (last revised in September 2012).
EU lawmakers amend the SGP to allow it to better consider individual national circumstances and to add more economic rationale to the rules to be complied with.
The SGP’s corrective rules enter into force.
The SGP’s preventive rules enter into force.
Stability and Growth Pact
EU Member States agree to strengthen the monitoring and coordination of national fiscal and economic policies to enforce the deficit and debt limits established by the Maastricht Treaty. The Stability and Growth Pact is born.
Maastricht Treaty signed
EU Member States sign the Maastricht Treaty, paving the way for the creation of the euro as the common currency of the EU. The treaty limits government deficits to 3 % of GDP and public debt levels to 60 %, so as to enable countries to share a single currency