Economic governance: Council adopts "two-pack"
EU News 228/2013
COUNCIL OF THE EUROPEAN UNION
Brussels, 13 May 2013
The Council today1 adopted the so-called "two-pack" of regulations aimed at further improving economic governance in the euro area, namely:
– a regulation on enhanced monitoring and assessment of draft budgetary plans of euro area member states, with closer monitoring for those in an excessive deficit procedure (6/13 + ADD 1);
– a regulation on enhanced surveillance of euro area member states that are experiencing or threatened with serious financial difficulties, or that request financial assistance (5/13 + ADD 1).
Proposals were presented by the Commission in November 2011, following adoption of an initial "six-pack" of economic governance measures2. Agreement was reached with the European Parliament on 20 February this year.
Under the two regulations:
– By 15 October annually, each member state will have to submit its draft budget for the following year. If an examination of the draft budget reveals a serious noncompliance with the budgetary obligations laid down in the Stability and Growth Pact, the Commission will request a revised draft budget;
- A member state experiencing severe financial disturbance or receiving precautionary financial assistance will come under enhanced surveillance, whilst a member state receiving (non-precautionary) financial assistance will also be subject to a macroeconomic adjustment programme.
1 The decision was taken without discussion at a meeting of the Agricultural and Fisheries Council.
2 Press release 16446/11.