13 May 2013

Economic governance: Council adopts "two-pack"

The Council today 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 measures. 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 non-compliance 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 macro-economic adjustment programme.

© European Council