The general escape clause of the Stability and Growth Pact, which provides for a temporary deviation from the budgetary requirements that normally apply in the event of a severe economic downturn, will be deactivated at the end of 2023. Moving out of the period during which the general escape clause was in force will see a resumption of quantified and differentiated country-specific recommendations on fiscal policy.

Discussions on a revised economic governance framework, based on the Commission's orientations presented in November 2022, are ongoing. Until a new economic governance framework comes into operation and in view of the new post-pandemic reality, it is not appropriate to return to the sole implementation of the rules of the Stability and Growth Pact in force prior to the activation of the general escape clause in 2020.

Given that a new legal framework, based on the outcome of the ongoing economic governance review, is not yet in place, the current legal framework continues to apply. At the same time, to allow for an effective bridge to the future fiscal rules and to take into account current challenges, some elements of the Commission's reform orientations that are consistent with the current legislation could already be incorporated into the fiscal surveillance cycle.

The Commission, therefore, stands ready to propose country-specific recommendations on fiscal policy for 2024 that include a quantitative requirement as well as qualitative guidance on investment and energy measures. These recommendations will be consistent with the criteria proposed in the Commission's orientations, while also remaining consistent with the current legislation under the Stability and Growth Pact.