Euro area economic policy 2023

Key points

The EESC:

• supports the Commission's recommendations for the euro area economic policy for 2023 and puts forward a number of additional proposals, in addition to reiterating the conclusions of its previous opinion;
• recommends that the two bands of consumption be set in such a way that all households facing major problems in paying their energy bills are protected. Furthermore, the two-tier policy should cover both people below the poverty line and those belonging to the lower middle class who, due to low incomes, will not be able to pay their energy bills at market prices;
• supports the Commission's proposal that Member States make use of the State Aid Temporary Crisis Framework and recommends that Member States use all possible means to help businesses in general and small and medium-sized enterprises in particular;
• recommends that monetary policy be used prudently, since, as long as inflation is being driven by exogenous factors, monetary policy in this complex context can have a cyclical effect;
• supports the Commission's proposal for euro area countries to coordinate their fiscal policy with the monetary policy of the European Central Bank. This is important for the success of monetary policy in curbing inflation;
• believes that the completion of the Capital Markets Union and the Banking Union will be important steps in deepening economic and monetary union and recommends that Member States make efforts to speed up the process;
• recommends that Member States swiftly implement the Minimum Wage Directive at national level. This could improve the level of the minimum wage and create a safety net for low-wage earners, preserving the purchasing power of wages at this time of high inflation;
• firmly backs the Commission's recommendation that Member States should use the opportunity of social dialogue to involve the social partners in the design and implementation of the policies needed to mitigate the effects of the crisis.