Reshaping the EU fiscal framework for a sustainable recovery and a just transition (own-initiative opinion – Gr II)

Key points:

The EESC

• calls on the Commission to swiftly continue the revision of the EU economic governance framework and reiterates its position on the need for reforms;

• calls on the Commission to put forward guidelines for a transition period, during which time the excessive deficit procedure should not be triggered, and with the possibility to use the "unusual event clause" on a country-specific basis;

• considers that any future fiscal framework needs to a) strengthen public investments, b) allow for more cyclical leeway and c) permit greater flexibility and country-specific differentiation as far as debt adjustment paths are concerned, while at the same time guaranteeing fiscal sustainability;

• Points out that a revision of the EU fiscal framework is not only necessary for the purpose of short- to medium- term stabilisation of the economy, but also vital to finance the socio-ecological transformation of our economy, guaranteeing full employment, high-quality jobs and just transitions;

• calls for the introduction of a golden rule for public investments in combination with an expenditure rule;

• welcomes the proposal made by the European Fiscal Board (EFB) regarding the country-specific differentiation of fiscal adjustment paths;

• points out that both national parliaments and the European Parliament need to be given a prominent role in the future EU economic governance framework;

• calls for a greater involvement of civil society in the European Semester at both national and EU level;

• considers that the partnership principle should serve as a blueprint for an effective mechanism of civil society involvement.