Implementation of the broad guidelines for the economic policies of the Member States whose currency is the euro - Main contents
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Council Recommendation of 8 July 2014 on the implementation of the broad guidelines for the economic policies of the Member States whose currency is the euro| Legal instrument | Recommendation |
|---|---|
| Original proposal | COM(2014)401  |
| CELEX number i | 32014H0729(27) |
| Document | 08-07-2014 |
|---|---|
| Publication in Official Journal | 29-07-2014; OJ C 247 p. 141-143 |
| End of validity | 31-12-9999 |
29.7.2014 |
EN |
Official Journal of the European Union |
C 247/141 |
COUNCIL RECOMMENDATION
of 8 July 2014
on the implementation of the broad guidelines for the economic policies of the Member States whose currency is the euro
2014/C 247/27
THE COUNCIL OF THE EUROPEAN UNION,
Having regard to the Treaty on the Functioning of the European Union, and in particular Article 136 in conjunction with Article 121(2) thereof,
Having regard to Council Regulation (EC) No 1466/97 of 7 July 1997 on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies (1), and in particular Article 5(2) thereof,
Having regard to Regulation (EU) No 1176/2011 of the European Parliament and of the Council of 16 November 2011 on the prevention and correction of macroeconomic imbalances (2), and in particular Article 6(1) thereof,
Having regard to the recommendation of the European Commission,
Having regard to the conclusions of the European Council,
Having regard to the opinion of the Economic and Financial Committee,
Having regard to the opinion of the Economic Policy Committee,
Whereas:
(1) |
The current economic environment of the euro area is characterised by a gradual, but still fragile economic recovery. In 2013 and in early 2014, euro area inflation declined markedly and is expected to increase only very gradually over the forecast horizon, reflecting the existing slack together with the ongoing relative price adjustments in the vulnerable economies and the past appreciation of the euro exchange rate. Furthermore, while the recovery is becoming more broad‐based, divergences between Member States whose currency is the euro (‘euro area Member States’) remain high. |
(2) |
The euro area is more than just the sum of its members. The economic and financial crisis clearly exposed the close interrelations in the euro area and underscored the need for stronger coordination of fiscal, financial and structural policies among euro area Member States to ensure a coherent policy stance for the euro area as a whole. The euro area Member States have committed themselves to a set of far‐reaching policy reforms and policy coordination by signing the Treaty on Stability, Coordination and Governance (TSCG) in the Economic and Monetary Union on 2 March 2012. The entry into force of the so‐called two pack Regulations (3) (‘two pack’) in 2013 has further deepened budgetary and economic policy coordination within the euro area. Euro area Member States have a specific responsibility for an effective implementation of the new governance framework. This calls for increased peer pressure to support national reform implementation and fiscal prudence, greater assessment of national reforms from a euro area perspective, internalising potential spillovers and stimulating policies of particular importance for a well functioning EMU. This also calls for appropriate communication about the euro area strategy. |
(3) |
Given the high interdependence between euro area Member States, there are potentially large spillovers related to the implementation of structural reforms which need to be taken into account in order to secure optimal policy design and implementation for euro area Member States individually and for the euro area as a whole. For example, more concerted action in the implementation of reforms would facilitate the necessary convergence between Member States. Early discussion of reform plans of the euro area Member States, building on existing practices and effective implementation of the macroeconomic imbalances procedure are of key importance in this regard. |
(4) |
One of the key policy challenges facing the euro area is to reduce government debt by pursuing differentiated, growth‐friendly fiscal policies while boosting the growth potential of the euro area and tackling the social... |
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