Euro area economic policy 2024

Key points

The EESC:

• welcomes the European Commission's euro area recommendations and broadly shares these and its assessment of the current economic situation;
• urges the European Central Bank (ECB) to adopt a prudential approach based on a dynamic and data-driven monetary policy to further bring inflation back down to the target and expresses its support for continued coordination of Member States' fiscal policy with the monetary policy of the ECB;
• supports the Commission's call for fiscal consolidation and urges the Member States to reach an agreement on the reform of the Stability and Growth Pact before the end of the year;
• welcomes the European Commission's recommendation for Member States to, in accordance with national practices and while respecting the role of social partners, support wage developments that mitigate purchasing power losses, especially for low-income earners, taking due account of competitiveness dynamics and avoiding lasting divergences within the euro area;
• welcomes the launch of the EU talent pool and reiterates the importance of implementing the recommendations set out in the Employment and Social Developments in Europe Report: Addressing labour shortages and skills gaps in the EU;
• calls for the completion of the Capital Markets Union to take away existing barriers for meeting the investment needs for just and inclusive green and digital transitions;
• stresses the importance of completing the Banking Union and establishing the missing third pillar, the European Deposit Insurance Scheme (EDIS);
• calls for progress on the electricity market reform and the Energy Union through legislation and investment in energy infrastructure and interconnections. These are vital steps towards lowering energy costs for households while improving the competitiveness of European businesses;
• believes that a European solution for strengthening the long-term competitiveness of European businesses which does not undermine the single market is crucial. Therefore, the EESC reiterates its support for the Strategic Technologies for Europe Platform and repeats its call for the Commission to establish common instruments to this end.