The Social Dimension of the Economic and Monetary Union (Communication)
Within the framework of the European Semester, the Commission wants to improve the surveillance and coordination of developments in social and employment policy. In addition, it wants to make EU funds available to combat unemployment and improve cross-border cooperation between employment services. It is also calling for an autonomous budget to absorb asymmetric shocks and the transfer of legislative competence regarding social policy to the EU.
An autonomous budget for the eurozone may facilitate the absorption of asymmetric shocks. However, an autonomous budget reduces the incentive for euro states to deliver a flexible labour market. If a euro state with a low GDP per head becomes a net payer, the eurozone budget will come up against an acceptance problem.