After two rounds of negotiations, negotiators from the European Parliament and the Cyprus Presidency of the Council of the European Union reached an agreement on Monday 8 June on the targeted legislative revision aimed at simplifying the European economic governance framework and making it more consistent with the 2024 reform of the Stability and Growth Pact (see EUROPE 13722/9).
“The agreement trims unnecessary reporting obligations, streamlines procedures and improves coherence across the framework, without touching the fiscal substance that underpins sound fiscal rules”, welcomed Markus Ferber (EPP, German), co-rapporteur on this file, in a press release. He called for the launch of a similar regulatory simplification exercise for “financial services”.
Co-rapporteur Carla Tavares (S&D, Portuguese) referred to an agreement that “preserves the role of the European Parliament” and reaffirms the economic policy priorities agreed at EU level in 2024, namely “climate, digital, social and defence”.
The financial sanctions that could be imposed on a Member State breaching European fiscal rules (Regulation 1173/2011) will be gradual, less severe, but more automatic. Under the reform, sanctions applicable outside the corrective arm of the Pact will follow the same logic.
MEPs reaffirmed Parliament’s prerogatives in terms of access to information on how Member States’ fiscal policies are assessed. They will maintain an in-depth dialogue with those responsible for applying EU fiscal rules.
Lastly, as regards the surveillance of countries that have received a macrofinancial bailout, post-programme surveillance missions may take place five years after exit from a bailout plan, provided that the country concerned complies with the fiscal commitments made at EU level, notably in terms of the sustainability of its public debt.
The interinstitutional political agreement still has to be approved by the two co-legislating institutions. (Original version in French by Mathieu Bion)