Report on the proposal for a regulation of the European Parliament and of the Council on common provisions for monitoring and assessing draft budgetary plans and ensuring the correction of excessive deficit of the Member States in the euro area

(COM(2011)0821 – C7-0448/2011– 2011/0386(COD))

This report by Elisa FERREIRA (S&D, PT) was written for and adopted by the Committee on Economic and Monetary Affairs. It addresses the proposal for a regulation of the European Parliament and of the Council on common provisions for monitoring and assessing draft budgetary plans and ensuring the correction of excessive deficit of the Member States in the euro area.

This regulation sets out to enhance monitoring of budgetary and economic policies in the eurozone by complementing the procedure for “prevention and correction of excessive macroeconomic imbalances” and guaranteeing the compatibility between this and budgetary policies through a closer monitoring of Member States' national reform programmes and their economic partnership programmes.

It is suggested in the report that each Member State shall make public their national medium-term fiscal plans, based on credible and independent macroeconomic forecasts. This should be done no later than the 30th April each year.

For the purposes of monitoring, Member States shall submit an annual draft budgetary plan for the forthcoming year to the Commission and the Eurogroup. This should be done no later than the 1st October. It should take into account the country-specific policy recommendations in the context of the Stability and Growth Pact or the macroeconomic imbalances procedure.

It will be up to the Commission to identify non-compliance of the draft budgetary plan. It may request a revision of the plan, after consultation with the Member State.

The Commission will also assess the potential negative spill-over effects on the sustainability of public finances of Member States from their private sector or by other Member States. The assessment shall be made public and shall be integrated in the forthcoming annual growth survey.

Economic partnership programmes shall be introduced for those Member States with excessive deficit. The programme aims to select specific budgetary priorities aiming at stabilising the economy in the short term, leading to long-term sustainability.

There will be opportunities for the President of the Council, the Commission and the President of the European Council or the President of the Eurogroup to be invited by the competent committee to discuss decisions taken in light of this Regulation. This is to enhance transparency and accountability, and should allow an exchange of views between the Member State concerned and the Commission.

Both the Commission and the European debt authority will submit reports to the European Parliament and the Council three months after the entry into force of the Regulation.

The European Parliament voted to approve the report on the 12th June 2012 with 501 for, 138 against and 36 abstentions.

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Alternatively visit the website at www.europarl.europa.eu

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