Finansudvalget 2022-23 (2. samling)
FIU Alm.del Bilag 134
Offentligt
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NEW
ECONOMIC GOVERNANCE
RULES
FIT FOR THE FUTURE
26 April 2023
The Commission has presented legislative proposals to implement a comprehensive reform of the EU economic
governance framework.
The proposals seek to
respond to the significantly higher levels of public debt
in the aftermath of the pandemic and
support reforms and investment. They
address shortcomings
in the current framework and
take into account the
lessons
from the EU policy response to COVID-19.
They make EU economic governance
simpler,
improve
national ownership,
place a greater emphasis on the medium-
term and strengthen
enforcement.
Key principles and objectives
The key objective of the reform is to
strengthen debt sustainability
and
promote sustainable and inclusive
growth
through reforms and investment. It includes:
Stronger national ownership
Simpler rules
Facilitating reforms and investment for EU priorities
Providing for effective enforcement
 FIU, Alm.del - 2022-23 (2. samling) - Bilag 134: Præsentationer, baggrundsmateriale, forslag til spørgsmål og EU-nyt vedr. høringen om reform af EU’s finanspolitiske regler afholdt onsdag den 3. maj 2023, kl. 15-17 i Landstingssalen
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New fiscal surveillance process
The proposals introduce a new process based on Member States integrating fiscal, reform and investment
commitments into a single medium-term plan.
COMMISSION
issues “technical
trajectories”
for Member States with public
debt above 60% of GDP or a
government deficit above 3%
of GDP to guide the setting and
assess the degree of ambition
of their expenditure targets.
MEMBER STATES
submit
medium-term fiscal-
structural
plans setting out
their fiscal adjustment paths
and reform and public invest-
ment commitments.
COUNCIL
endorses the plans
following a positive
assessment from
the Commission.
MEMBER STATES
present
annual progress reports
on the implementation of commitments
for assessment by the Commission.
Links with the European Semester
The new fiscal surveillance process will be
integrated in the European Semester,
which will remain central to
policy coordination. It
monitors the delivery of investment and reform commitments
contained in Member
States’ recovery and resilience plans and, in future, their medium-term fiscal-structural plans.
Timeline
The
proposals are the result of an extended period of reflection and an extensive consultation process with a wide
range of stakeholders.
2020
2021
2022
2023
February
Launch of
public debate
on future of
EU economic
governance
October
Relaunch of
public debate
March
Report on
results of
public survey
November
Presentation of
orientations for
reforms
April
Presentation
of legislative
proposals for
reforms
end
Expected
agreement
on legislative
proposals
(as per the
Council’s
commitment)
 FIU, Alm.del - 2022-23 (2. samling) - Bilag 134: Præsentationer, baggrundsmateriale, forslag til spørgsmål og EU-nyt vedr. høringen om reform af EU’s finanspolitiske regler afholdt onsdag den 3. maj 2023, kl. 15-17 i Landstingssalen
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Fiscal adjustment path
All Member States must prepare medium-term plans setting out their fiscal, reform and investment policies over
the course of four years. These plans will form the basis of fiscal surveillance.
Member States
with a deficit below 3% and debt below 60% of GDP
No fiscal adjustment required
These Member States must maintain:
●
●
a government deficit below 3% of GDP and
public debt below 60% of GDP over the medium term.
Member States
with a deficit above 3% or debt above 60% of GDP
Fiscal adjustment spread over 4 years
These Member States must outline a fiscal adjustment path which ensures that:
●
the deficit remains or is brought and
maintained below 3% of GDP;
debt is put on a plausibly downward path or
stays at prudent levels by the end of the
adjustment period;
●
●
debt must be lower at the end of the period
covered by the plan than at the start of that
period;
a minimum fiscal adjustment of 0.5% of GDP
per year as a benchmark is to be implemented
so long as the deficit remains above 3% of
GDP.
●
Fiscal adjustment spread over 7 years
●
Member States may benefit from a more gradual fiscal adjustment path of up to seven years to fulfil the
criteria above if they commit to reforms and investment that support the adjustment.
They will still need to deliver a sizeable adjustment during the four years covered by the plan.
●