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Economic governance
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Economic governance
Economic governance
The 2019-2020 Economic Reform Programme (ERP) cycle was interrupted by the unprecedented sanitary crisis caused by the Covid-19 pandemic. The ERPs were submitted by the partner countries around end-January 2020 and the Commission ERP assessment was finalised shortly thereafter in February 2020, supported by a fact-finding mission in mid-February. The Covid-19-related economic crisis has in the meantime rendered the macro-fiscal scenarios presented in the ERP and in the Commission assessment largely obsolete. Nevertheless, the Commission’s assessment served as a ground for the discussions in the various working groups in the Council format and preparation of the Joint Conclusions, including designing of the specific Policy Guidance.
The Economic and Financial Dialogue between the EU and the Western Balkans and Turkey took place in the digital format on 19th May, where the representatives of the EU Member States, the Western Balkans and Turkey, the European Commission and the European Central Bank, as well as representatives of the central banks of the Western Balkans and Turkey adopted the Joint Conclusions with the specific targeted Policy Guidance for the 2020-2021 ERP cycle.
Fundamentals first
Fulfilment of the economic criteria is a key requirement for EU membership, as set out in the Copenhagen criteria. It implies a functioning market economy is in place that has the capacity to withstand competitive pressure inside the EU single market. The European Commission gives an overview of each country's readiness and progress in the fulfilment of the economic criteria every year. For more details see our latest strategy paper and country progress reports.
Economic governance is the system by which government institutions, including independent actors like the central bank, regulate and steer the economy. The fundamentals first approach to EU enlargement encourages aspiring members to tackle economic fundamentals first: macroeconomic stability, a welcoming business environment, functioning labour and financial markets, good levels and quality of education, infrastructure, innovation and economic integration with the EU and the world.
The EU strengthened its economic governance exercise with the enlargement countries in 2015 to prepare them for their eventual participation in the European Semester.
Economic Reform Programmes
As of 2015, all candidate countries and potential candidates submit annual Economic Reform Programmes (ERP) to the European Commission. They are an expanded version of the previous Pre-Accession Economic Programmes for candidate countries. The ERPs contain medium-term macroeconomic projections (including for GDP growth, inflation, trade balance and capital flows), budgetary plans for the next three years and a structural reform agenda. The structural reform agenda includes reforms to boost competitiveness and improve conditions for inclusive growth and job creation in the following areas:
- Energy and transport markets
- Sectoral development
- Business environment and reduction of the informal economy
- Research, development and innovation and the digital economy
- Trade-related reform
- Education and skills
- Employment and labour markets
- Social inclusion, poverty reduction and equal opportunities
The European Commission and the European Central Bank (ECB) both make assessments of the ERPs that are submitted to the Council of Ministers for direct discussions with the enlargement countries.
Economic and Financial multilateral dialogue
All seven enlargement countries participate in a multilateral dialogue meeting with the Ministers of Finance of the EU Member States, the EU and the ECB on an annual basis. The participants adopt Joint Conclusions with country-specific policy guidance for each of the countries outlining economic policy priorities for the coming 12 months. The policy guidance passes through preparatory multilateral discussions in the Council of Ministers over the course of a month. These discussions occur in parallel in the Economic Policy Committee, the Employment Committee and the Economic and Financial Committee. The Commission and ECB assessments of the Economic Reform Programmes (see above) form the basis for these discussions.
EuroStat provides a Progress Report on the Action Plan on Economic, Monetary and Financial Statistics for Candidate Countries that is also discussed during the dialogue meeting.
Economic Reform Programmes 2021-2023
Economic Reform Programmes 2020-2022
Economic Reform Programmes 2019-2021
ERP 2019-2021 of Albania
ERP 2019-2021 of Bosnia and Herzegovina
ERP 2019-2021 of Kosovo
ERP 2019-2021 of Montenegro
ERP 2019-2021 of North Macedonia
ERP 2019-2021 of Serbia
ERP 2019-2021 of Turkey
Economic Reform Programmes 2018-2020
ERP 2018-2020 of Albania
ERP 2018-2020 of Bosnia and Herzegovina
ERP 2018-2020 of Kosovo
ERP 2018-2020 of Montenegro
ERP 2018-2020 of North Macedonia
ERP 2018-2020 of Serbia
ERP 2018-2020 of Turkey
Assessment of Albania's ERP
Assessment of Bosnia and Herzegovina's ERP
Assessment of the former Yugoslav Republic of Macedonia's ERP
Assessment of Kosovo's ERP
Assessment of Montenegro's ERP
Assessment of Serbia's ERP
Assessment of Turkey's ERP
Economic Reform Programmes 2017-2019
Economic Reform Programme 2017-2019 of Albania
Economic Reform Programme 2017-2019 of Bosnia and Herzegovina
Economic Reform Programme 2017-2019 of Kosovo*
Economic Reform Programme 2017-2019 of the former Yugoslav Republic of Macedonia
Economic Reform Programme 2017-2019 of Montenegro
Economic Reform Programme 2017-2019 of Serbia
Economic Reform Programme 2017-2019 of Turkey
European Commission Assessment of the Albania ERP
European Commission Assessment of the Bosnia and Herzegovina ERP
European Commission Assessment of the Kosovo ERP
European Commission Assessment of the former Yugoslav Republic of Macedonia ERP
European Commission Assessment of the Montenegro ERP
Economic Reform Programmes 2016-2018
Economic Reform Programme 2016-2018 of Albania
Economic Reform Programme 2016-2018 of Bosnia and Herzegovina
Economic Reform Programme 2016-2018 of Kosovo*
Economic Reform Programme 2016-2018 of the former Yugoslav Republic of Macedonia
Economic Reform Programme 2016-2018 of Montenegro
Economic Reform Programme 2016-2018 of Serbia
Economic Reform Programme 2016-2018 of Turkey
European Commission Assessment
Joint Conclusions of the Dialogue between the EU and the Western Balkans and Turkey
Economic Reform Programmes 2015-2017
Economic Reform Programme 2015-2017 of Albania
Economic Reform Programme 2015-2017 of Bosnia and Herzegovina
Economic Reform Programme 2015-2017 of Kosovo*
Economic Reform Programme 2015-2017 of the former Yugoslav Republic of Macedonia
Economic Reform Programme 2015-2017 of Montenegro
Economic Reform Programme 2015-2017 of Serbia
Economic Reform Programme 2015-2017 of Turkey
European Commission Assessment (part I)
Joint Conclusions of the Dialogue between the EU and the Western Balkans and Turkey