EU Commission proposes reforms to strengthen economic governance framework

The European Commission has proposed legislative changes to the economic governance framework of the European Union (EU) to strengthen debt sustainability and promote sustainable and inclusive growth through reforms and investment. The changes aim to simplify the framework, enhance national ownership, and strengthen enforcement. The proposal includes replacing the current regulations on budgetary positions and economic policies, speeding up and clarifying the implementation of the excessive deficit procedure, and updating the requirements for budgetary frameworks of member states. The proposals will focus on simpler and transparent rules, stronger national ownership, more gradual fiscal adjustment paths, and enhanced enforcement and common safeguards. The Commission has engaged extensively with member states and the European Parliament, and the proposals aim to ensure sustainable and sound public finances through a risk-based surveillance framework that puts debt sustainability at its core.