Reform of the EU Economic Governance – Why and How?

Europe is facing a whole new set of challenges: The cost of living is rising, war is on our doorstep, and an environmental turnaround is needed. How should the EU framework for economic governance change to make Europe stronger, more sustainable and more resilient? The European Commission has recently developed guidelines for a reformed economic governance framework. In March 2023, the European Council endorsed these guidelines. They aim at strengthening national ownership and facilitating the enforcement of projects. At the same time, they are intended to enable strategic investments and set a framework to reduce the high level of public debt. However, such economic policy coordination efforts at the EU level and the individual governance reform proposals open new debates. To what extent do they correspond to the real needs and interests of the EU? And do they take into account country-specific economic, structural and social problems of the member states?

The articles in this issue of EconPol Forum highlight important aspects of a reform of the EU’s economic governance that will help to make the public finance and the economy of the EU and its member states healthier and more resilient in the future. They critically examine the EU’s latest reform proposal and shed light on ways to make policies and measures more effective.