EUU, Alm.del - 2022-23 (2. samling) - Bilag 456: Præsentationer, baggrundsmateriale og forslag til spørgsmål vedr. høringen om reform af EU’s finanspolitiske regler afholdt onsdag den 3. maj 2023, kl. 15-17 i Landstingssalen

Europaudvalget 2022-23 (2. samling)
EUU Alm.del Bilag 456
Offentligt

European Commission proposal for a reform

of the EU economic governance framework

Maarten Verwey

Director General for Economic and Financial Affairs

May 2023

EUU, Alm.del - 2022-23 (2. samling) - Bilag 456: Præsentationer, baggrundsmateriale og forslag til spørgsmål vedr. høringen om reform af EU’s finanspolitiske regler afholdt onsdag den 3. maj 2023, kl. 15-17 i Landstingssalen

Key objectives and principles of the reform

The key objective of the reform is to strengthen debt sustainability and promote

sustainable and inclusive growth through reforms and investment.

Key principles:

Medium-term approach bringing together fiscal policy, reforms and investment.

Gradual and credible debt reduction underpinned by growth enhancing investment and reforms

for EU priorities.

More national ownership, based on common EU rules and better enforcement.

Simpler rules taking account of different fiscal challenges.

Context

Legislative proposals follow a long and intense period of consultations and

discussions, which started before Covid and accelerated since October 2021.

Legislative proposals are consistent with the Commission communication on

orientations for reform (9 November 2022).

Several modifications and clarification addressing concerns of Member states

(i.e.

safeguard provisions).

Key elements of the new framework

Medium-term fiscal structural plans (4-year horizon), proposed by Member States but framed by

requirements.

A country-specific net expenditure path (i.e.

of discretionary revenue measures) will be the

net

single operational fiscal indicator.

should ensure that debt converges to prudent levels.

Targeting

net expenditure makes fiscal policy counter-cyclical in normal circumstances.

Extended adjustment period (up to 7 years) underpinned by a specific set of reform and investme

commitments (supporting growth and fiscal sustainability; addressing CSRs and EU priorities).

Additional common safeguards on deficit, debt, backloading and net expenditure growth.

General and country-specific escape clauses for extraordinary situations (severe downturn in the

EU/EA or exceptional events at national level outside the control of the Member States).

Enhanced enforcement.

Changes to the directive on national fiscal frameworks.

A country-specific net expenditure path

Single fiscal operational indicator.

Should ensure that:

Debt at the end of the plan horizon (4 years) is, and remains, on a plausible downward

path, or stays at prudent levels, without future adjustment;

Deficit is, and remains, under 3% without further adjustment.

Use of common and transparent methodology for the assessment of the fiscal effo

Commission will provide “technical trajectory” to guide the Member States and to

facilitate multilateral surveillance.

Additional safeguards

0.5% of GDP minimum adjustment for as long as the deficit is above 3% referenc

value.

Debt at the end of the planning horizon (4 years) lower than at the beginning.

Anti-backloading provision.

Net expenditure growth below medium-term output growth, on average, over the

plan horizon.

Provisions for Member States with

low public debt challenges

Risk-based surveillance.

Respect of 3% deficit threshold on a “no policy change” basis.

No technical trajectory, but guidance as regards the structural primary balance at

the end of the planning horizon

Consideration of long-term fiscal sustainability challenges related to population

ageing.

Thank you