Revitalising EU economic governance: EESC's vision for success

The EESC has presented a set of crucial recommendations in response to the Commission's proposed legislative package reforming the European Union's economic governance framework. While the EESC appreciates the intention of simplifying the framework, it advocates for critical adjustments to the proposal. These recommendations come at a pivotal moment, underlining the need for a balanced, adaptable, and sustainable approach to economic governance within the EU.

Amid EU challenges like the pandemic, geopolitical complexities and climate goals, EESC rapporteur Javier Doz Orrit advocates for more flexible fiscal and structural plans involving national democratic institutions and civil society, suggesting a permanent fiscal capacity for the EU and deeper economic governance. While the EESC appreciates certain aspects of the legislative package, it calls for substantial adjustments.

Co-rapporteur Luca Jahier urges prompt negotiations for a balanced, enforceable economic framework. Key proposals include replacing rigid deficit reduction rules with a more tailored approach, reconsidering automatic sanctions, and granting national governments a say in fiscal plans. The EESC also suggests treating green and defense investments differently, broadening the definition of public investment, and establishing an EU fiscal capacity by 2026. Inclusive governance involving social partners, civil society and parliaments is emphasised throughout the process.