An agreement on the reform of the economic governance framework is urgently needed

At its plenary session on 24 February, the EESC adopted an opinion on the Commission's Communication outlining its proposals for a reform of the economic governance framework. A swift agreement is needed, but the plan is lacking in detail, stresses the EESC.

Since the Maastricht Treaty in 1992, the EU's economic governance framework has helped to create conditions conducive to economic stability, growth and higher employment in Europe. However, while it has evolved over time, the framework has also grown increasingly complex and not all of its instruments and procedures have stood the test of time. 

While the EESC agrees on the need for a swift agreement ahead of the Member States' budgetary processes for 2024, it also stresses that many details are yet to be finalised. The proposed "fiscal-structural plans" must ensure that debt-to-GDP ratios are put on a downward path or stay at prudent levels. At the same time, the rules must leave enough fiscal space for green and digital transition investments. Most importantly, for a reformed framework to be successful, enhanced ownership of the rules is key. 

"It is urgent to reform the fiscal framework. Many Member States have not consolidated their public finances enough during good times," said EESC rapporteur Krister Andersson. "The lack of prudent policies hurts the most vulnerable in society. Reduced debt levels and debt sustainability are key. We agree on the need for a swift agreement ahead of the Member State's budgetary processes for 2024." (tk)