Making it mandatory to consult civil society on necessary economic reforms

Since the Maastricht Treaty of 1992, the European Union’s economic governance framework has played a key role in promoting economic stability, growth, and employment across Europe. As this framework has evolved over time, it has become increasingly intricate, with some of its instruments failing to adapt to current situations.

In April 2023, the European Commission introduced a proposal to reform the EU’s economic governance framework to address today’s economic challenges. By    September    2023,    the    European    Economic and Social Committee (EESC) had issued pivotal recommendations which significantly shaped the final legislative package.

We led the interinstitutional discussions, advocating for an approach that struck a balance between reducing public debt to sustainable levels and ensuring adequate public and private investment to support the green and digital transitions. One of our central demands was to make it mandatory for Member States to consult civil society and social partners before submitting their medium-term fiscal plans.

’This essential element was missing from the Commission’s original proposal’, commented European Parliament co-rapporteur, Margarida Marques. ’To exclude European civil society from the process of shaping economic reforms is a clear democratic shortfall.’

The EESC adopted its recommendations very early in the process, and that helped shape the positions of both the European Council and the European Parliament. EESC rapporteurs Javier Doz Orrit and Luca Jahier worked closely with their counterparts in the Parliament to reach a political compromise. 
Crucially, our advocacy led to a parliamentary amendment requiring all Member States to consult civil society and social partners before submitting national fiscal plans. This provision became part of the revised governance framework, which took effect on April 30, 2024.

Marques underscored the significance of this shift: ‘Building inclusive, democratic rules isn’t merely a technical exercise – it demands contributions from all sectors of society. This new law obliges Member States to create a formal consultation process, setting a precedent for the future. Ignoring civil society is no longer an option.’

Looking ahead

As the new governance framework is being rolled

out, we are already preparing for the next step. In September 2024, the EESC adopted an opinion entitled    An EU Investment Fund for Economic Resilience and Sustainable Competitiveness, where we make recommendations on how the EU can meet the financial needs of the Green Deal through a dedicated investment fund.

We remain committed to working on building a competitive and sustainable EU economy, where no one is left behind.

The EESC says yes to fiscal and structural plans negotiated with national governments, but without rigidities, and with more involvement of national democratic institutions and organised civil society. We propose a reflection to overcome the limitations of the Commission proposal: permanent fiscal capacity for the EU and deeper economic governance. Javier Doz Orrit, EESC rapporteur

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