Skip to main content
Economy and Finance

Economic governance review

Building an economic governance framework fit for the challenges ahead.

A new economic governance framework fit for the future

On 10 February 2024, the European Parliament and the Council reached agreement on the most ambitious and comprehensive reform of the EU's economic governance framework since the aftermath of the economic and financial crisis. The Commission had presented its reform proposals in April 2023.

The main objectives of the framework are to strengthen Member States' debt sustainability, and promote sustainable and inclusive growth in all Member States through growth-enhancing reforms and priority investments. The framework will help make the EU more competitive and better prepared for future challenges by supporting progress towards a green, digital, inclusive and resilient economy.

Stronger national ownership with medium-term plans

New medium-term fiscal structural plans are at the centre of the new framework. Member States will design and present plans setting out their fiscal targets, priority reforms and investments, and measures to address any possible macroeconomic imbalances during a fiscal adjustment period. The ‘adjustment period' refers to the timeframe within which, through a combination of fiscal adjustments, reforms and investments, a Member State's debt level is put on a sustainable downward path.

Simpler rules taking account of different fiscal challenges

The new framework introduces risk-based surveillance which differentiates between Member States based on their individual fiscal situations. This approach will adhere to a transparent common EU framework underpinned by safeguards to ensure that debt is put on a downward path (the debt sustainability safeguard) or provide a safety margin below the Treaty deficit reference value of 3% of GDP in order to create fiscal buffers (the deficit resilience safeguard).

Promoting reforms and investment

Both reforms and investment are needed to face new and existing challenges. They are also essential components of credible debt-reduction plans. The new framework will facilitate and encourage Member States to implement the measures needed to secure the green and digital transitions, strengthen economic and social resilience and bolster Europe's security capacity.

Enhancing enforcement

Rules require enforcement. While the new framework provides Member States with more leeway over the design of their plans, it also establishes a strengthened enforcement regime to ensure Member States deliver on their commitments. Member States will present annual progress reports focusing on the implementation of commitments laid out in their plans for assessment by the Commission.

Documents

10 FEBRUARY 2024
Commission welcomes political agreement on a new economic governance framework fit for the future
English
(6.2 KB - HTML)
Download
17 FEBRUARY 2023
Q&As of the Commission services on the written questions received by Member States
English
(2.08 MB - PDF)
Download
9 NOVEMBER 2022
November 2022 - Economic Governance Review communication
English
(585.69 KB - PDF)
Download
28 MARCH 2022
March 2022 - Economic Governance Review – Summary report of the public consultation
English
(1.07 MB - PDF)
Download
19 OCTOBER 2021
October 2021 - Economic Governance Review communication
English
(277.21 KB - PDF)
Download
5 FEBRUARY 2020
February 2020 - Economic Governance Review communication
English
(625.54 KB - PDF)
Download
5 FEBRUARY 2020
February 2020 - Report on the application of the economic governance framework - Staff Working Document
English
(1.77 MB - PDF)
Download
5 FEBRUARY 2020
February 2020 - Review of the suitability of the Council Directive 2011/85/EU on requirements for budgetary frameworks of the Member States – Staff Working Document
English
(1.62 MB - PDF)
Download
5 FEBRUARY 2020
February 2020 - Factsheet #1 - Economic Governance Review: Taking stock at a time of new challenges
English
(206.29 KB - PDF)
Download
5 FEBRUARY 2020
February 2020 - Factsheet #2 - Economic Governance Review: Launching an inclusive debate
English
(109.3 KB - PDF)
Download