Opinions

The EESC welcomes the simpler and more transparent economic governance framework, the reduction of the pro-cyclical bias, the improvement in national ownership and strengthened enforcement, the differentiation and more tailored fiscal adjustment path of each Member State, based on a common-risk framework. However, the Committee proposes replacing the requirement obliging any Member State with a budget deficit of over 3% to cut that deficit by an average of 0.5% of GDP annually, and emphasises that the "technical trajectory" should be first in the hands of national governments and, at a second stage, be the result of a technical dialogue with the European Commission In due course. In due time, but by 2026 at the latest, an EU fiscal capacity should be established to meet at least some of the investment needs for common priorities and to allow Member States the fiscal space to meet the fiscal costs of the multiple transitions.

The EESC supports the digital euro project, while underlining the importance of a clear European legal framework able to establish the exceptional possibility of temporary exemptions for certain payees, and to harmonise practices and standards that vary from one Member State to another. It is essential to ensure that the digital euro does not negatively impact financial stability or the lending potential of credit institutions. The EESC encourages a broad public debate on the reasons for possible issuance of a digital euro, its merits and drawbacks, in order to make informed decisions and ensure public understanding of the project.

The EESC has issued key recommendations for the mid-term revision of the Multiannual Financial Framework (MFF) 2021-2027. The Committee calls for a prompt agreement on the MFF revision still this year, to guarantee continued financial backing of Ukraine and financing the EU´s evolving political priorities. However, the EESC criticizes the proposed changes as being too limited and lacking ambition, resembling mere patches. It advocates for long-term strategies centred on fiscal sustainability, efficient resource allocation, and measures to guard against unexpected events. Civil society should be engaged for effective planning and monitoring of MFF programmes.

The focus of current informal discussions in the Council is on how cohesion policy can adjust to the new circumstances following the unforeseen shocks that Europe has faced in the last years without losing its long-term development goals. The Spanish Presidency refers to "Cohesion policy 2.0" in this context, which particularly means that cohesion policy needs to be transformed and become more modern and flexible. Also, it will need to take into account the RRF which will come to an end at some time.