Economic Policy Coordination (Communication)
The EU is to be entitled to monitor and avoid “macroeconomic imbalances” in and between Member States. Furthermore, it is to be entitled to carry out a “thematic surveillance“ in order to ensure that Member States comply with the “Europe 2020 targets”. A reform of the Stability and Growth Pact is to safeguard that Member States consolidate their state budgets sufficiently. In addition, the EU is to be entitled to coordinate the economic policies in Member States. To this end, a “European Semester” is to be established.
The reform of the Stability and Growth Pact is reasonable, though not sufficient. The Commission should have proposed the requirement that sanctions be imposed automatically. Moreover, the Commission should have proposed an insolvency proceeding for euro-zone countries. If these two measures were implemented consistently, the propagated coordination of economic policies would become superfluous. The coordination of economic policies will lead to a levelling of the reforms and budgetary consolidation to mediocrity in Member States.