Sixpack (EU law)
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Within the framework of EU economic governance, Sixpack describes a set of European legislative measures to reform the
Overview
All 27 EU member states are committed by the paragraphs in the EU Treaty, referred to as the
Four of the six instruments in the Sixpack are used to conduct further reforms of the "Stability and Growth Pact" (SGP), focusing on improving compliance. These reforms do not change any of the conditions already imposed by the SGP, but aim to enforce greater budgetary discipline among the Member States of the
The remaining two pieces of legislation in the Sixpack relate to the Macroeconomic Imbalance Procedure, an early warning system and correction mechanism for excessive macroeconomic imbalances.
Specific EU regulations and guidelines
Member states of the European Union | |
Made by | European Parliament and Council |
---|---|
Made under | Article 136, 121 (6) and 126(14) of the TFEU |
Journal reference | L 306, 23 November 2011 |
History | |
Date made | 8 and 16 November 2011 |
Came into force | 13 December 2011 |
Current legislation |
Specifically, the EU sixpack relates to the following regulations and guidelines:
- Fiscal policy
- 1. Regulation 1175/2011 amending Regulation 1466/97: On the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies.[6]
- 2. Regulation 1177/2011 amending Regulation 1467/97: On speeding up and clarifying the implementation of the excessive deficit procedure.[7]
- 3. Regulation 1173/2011: On the effective enforcement of budgetary surveillance in the euro area.[8]
- 4. Directive 2011/85/EU: On requirements for budgetary frameworks of the Member States.[9]
The directive shall be implemented by all EU member states no later than 31 December 2013.[10]
- Macroeconomic imbalances
- 5. Regulation 1176/2011: On the prevention and correction of macroeconomic imbalances.[11]
The regulation lays out the details of the macroeconomic imbalance surveillance procedure and covers all EU member states.
- 6. Regulation 1174/2011: On enforcement action to correct excessive macroeconomic imbalances in the euro area.[12]
The regulation only apply towards all Eurozone Member States, and focuses on the possibility of sanctions and other procedures for enforcement of the needed "corrective action plan", to satisfy the EIP recommendation from the Council.
Further proposals for the Eurozone
Development of the Eurozone
Two-pack
Member states of the Eurozone | |
Made by | European Parliament and Council |
---|---|
Made under | Article 136 and 121 (6) of the TFEU |
Journal reference | L 140, 27.05.2013, p.11 |
History | |
Date made | 21 May 2013 |
Came into force | 30 May 2013 |
Implementation date | Most provisions: 30 May 2013 Some provisions: 31 Oct 2013 |
Preparative texts | |
Commission proposal | COM/2011/0821 final (2011/0386 COD)[13] |
Current legislation |
Member states of the Eurozone | |
Made by | European Parliament and Council |
---|---|
Made under | Article 136 and 121 (6) of the TFEU |
Journal reference | L 140, 27.05.2013, p.1 |
History | |
Date made | 21 May 2013 |
Came into force | 30 May 2013 |
Implementation date | 30 May 2013 |
Preparative texts | |
Commission proposal | COM/2011/0819 final (2011/0385 COD)[14] |
Current legislation |
A step towards increased fiscal discipline of member States of the European Union was taken on 23 November 2011, when the
- 1. Regulation 473/2013: 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.[16]
If the eurozone member state is not involved in an Excessive Deficit Procedure (EDP) or Excessive Imbalance Procedure (EIP) or Financial assistance programme, the only extra monitor requirement (compared to the SGP) will be for the member state to submit its draft fiscal budget for the upcoming year to the European Commission: no later than 15 October; and it shall then await receiving the Commission's opinion before it is debated and voted for in the national parliament. The European Commission will not be granted any veto right over the national parliaments potential pass of a fiscal budget, but will have the role to issue warnings in advance to the national parliaments, if the proposed draft budget is found to compromise the debt and deficit rules outlined by the European Fiscal Compact. The reporting requirements towards Eurozone member states subject to open EDP's are regulated by article 6 to 12, outlining that "status reports for corrective action" shall be published by 6 months intervals from the moment the Council has granted the country an official deadline for EDP correction, and with the frequency increased to quarterly reports for those "Member States persisting in failing to put into practice the recommendations of the Council" for corrective measures to remedy the excessive deficit situation - leading to a Council notice for immediate implementation of deficit reduction measures in accordance with article 126(9) of the TFEU. Article 6 to 12 does not apply for those Member States with open EDP's who are also subject to a macroeconomic adjustment programme - as their increased reporting requirements are specifically outlined by regulation 472/2013.[15]
- 2. Regulation 472/2013: On the strengthening of economic and budgetary surveillance of Member States in the euro area experiencing or threatened with serious difficulties with respect to their financial stability.EFSF/ESM/IMF/other bilateral basis, will be required to further increase the level and frequency for submitted monitor/surveillance reports to the European Commission. This so-called "enhanced surveillance" will mean, that "status reports for corrective action" needs to be published on a quarterly basis, and that the Commission on that basis will be allowed to send warnings to the national parliament of the member state concerned, about a likely missed compliance with programme targets and/or the fiscal adjustment path to comply with EDP deadlines, at such an early stage in the process, that the affected member state still have sufficient time to implement needed counter-measures to prevent the possible delay of the required compliance. Regulation 472/2013 will continue to apply for member states recently having ended a macroeconomic financial assistance programme, with a post-programme surveillance being active until at least the time when more than 25% of the borrowed money has been repaid. In the event of a "persistent risk to the financial stability or fiscal sustainability of the Member State concerned", the Council may also decide to further extend the duration of the post-programme surveillance. Finally it shall be noted, that regulation 472/2013 will not apply for a member state without an open EIP receiving macroeconomic financial assistance only in the form of an undrawn "Precautionary Conditioned Credit Line".[15]
The two above regulations apply towards all eurozone member states, and together form a stronger budgetary governance with a more tight system of monitoring and surveillance by the European Commission. According to
The provisions of the Two-pack (which only apply for Eurozone member states), complements and extends the Stability and Growth Pact already reformed by the Six-pack, and it also integrates some elements of the already ratified intergovernmental European Fiscal Compact, directly into EU law. Examples of identical elements with the Fiscal Compact: 1) Member States are required to transpose the SGP fiscal rules into national legislation, 2) Member States in EDP are required to prepare "economic partnership programmes", 3) Member States are required to submit their debt issuance plans for an ex-ante coordination with other Member States. The new legal structure introduced by the Two-pack, was in March 2013 expected to be used for the first time, when the 2014 fiscal budget draft laws shall be submitted to the European Commission for prior review and comments by 15 October 2013.[23]
Eurobonds
On 23 November 2011, the European Commission also presented a Green paper for the possible introduction of Eurobonds (referred to as "Stability Bonds"), that outlined different options and levels for common issuance and common guarantees.[24] The plan ultimately never moved forward in face of German and Dutch opposition; the crisis was ultimately resolved by the ECB's declaration in 2012 that it would do "whatever it takes" to stabilise the currency, rendering the Eurobond proposal moot.
Convergence and Competitiveness Instrument (CCI)
This section needs to be updated.(January 2023) |
The European Commission also recently[when?] proposed the establishment of a Convergence and Competitiveness Instrument (CCI) within the EU budget. The proposal is to create a special EU budget account with earmarked money, for supporting the timely implementation of needed structural reforms (traditionally considered to be politically unpopular to implement), where the implementation funding would be paid by the CCI fund conditional on strict adherence to a prior signed "contractual arrangement" for the agreed structural reform, with the two contracting parties being the Member State and the commission. If the Member State implements the identified and needed structural reforms to ensure convergence/competitiveness, then the CCI budget will so to speak pay the Member State an economic reward of behaving in a sound and responsible way.[25] The proposal is expected to be further debated, soon after the Council have concluded an agreement for the next 7-year EU budget (also referred to as the "Multi-annual Financial Framework 2014–2020").
An additional/related suggestion also currently being debated, is to create the CCI outside the EU budget and only let it apply for eurozone member states, with a budget instead to be covered by income from the collection of the Financial Transaction Tax (FTT). In October 2012, the FTT was formally agreed to be implemented and enter into force 1 January 2014 in 11 out of 17 eurozone member states.[26] Currently[when?] no formal decision was however reached, if the collected income should be kept as direct national income, or perhaps instead be transferred to a supranational eurozone budget.
Banking Union
This article needs to be updated.(August 2021) |
The proposal to create a Banking Union covers both the establishment of European Banking Supervision, and after its adoption also a Single Resolution Mechanism (SRM) to deal with banks in difficulties. This new independent organisation, is supposed to be in charge of the restructuring and resolution of banks within the EU Member States participating in the Banking Union (meaning that it is not limited to the eurozone). The European Commission presented the proposal 12 September 2012 and at the EU summit in October, it was agreed to formally request that a final proposal for the SSM framework be agreed between the Council and Parliament before the end of the year, with the aim for the SSM to be founded in 2013 and fully established to cover all banks starting from 1 January 2014.[26]
On 29 November 2012, the Economic and Monetary affairs Committee of the European Parliament voted on and approved the initial framework proposal and a mutually approved final proposal agreement between the Council and Parliament is now the next step. Remaining issues for the
See also
- Enhanced co-operation
- European sovereign debt crisis
- Euro Plus Pact
- Macroeconomic Imbalance Procedure
References
- ^ "Package of six legislative proposals". Hungarian Presidency of the Council of the European Union. April 2011. Retrieved 11 May 2013.
- ^ Erkärungsseite the Ministry of Finance Germany
- ^ "side of the European Parliament (German), in the English text is called a "sixpack"".
- ^ "Who does what in EMU". European Commission. Retrieved 28 August 2012.
- ^ laws, explanations, reactions, "Six-Pack: Reform of the Stability Pact confirmed" EurActiv.de 6 October 2011
- ^ "REGULATION (EU) No 1175/2011 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 16 November 2011 amending Council Regulation (EC) No 1466/97: On the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies". Official Journal of the European Union. 23 November 2011.
- ^ "COUNCIL REGULATION (EU) No 1177/2011 of 8 November 2011 amending Regulation (EC) No 1467/97: On speeding up and clarifying the implementation of the excessive deficit procedure". Official Journal of the European Union. 23 November 2011.
- ^ "REGULATION (EU) No 1173/2011 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 16 November 2011: On the effective enforcement of budgetary surveillance in the euro area". Official Journal of the European Union. 23 November 2011.
- ^ "COUNCIL DIRECTIVE 2011/85/EU of 8 November 2011: On requirements for budgetary frameworks of the Member States". Official Journal of the European Union. 23 November 2011.
- ^ "Commission Report: Interim progress report on implementation of Council Directive 2011/85/EU on requirements for budgetary frameworks of the Member States". Twenty-ninth Report of Session 2012-13 - European Scrutiny Committee Contents: 18 Economic governance. Parliament.uk. 30 January 2013. Retrieved 1 June 2013.
- ^ "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". Official Journal of the European Union. 23 November 2011. Archived from the original (PDF) on 15 July 2014.
- ^ "REGULATION (EU) No 1174/2011 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 16 November 2011: On enforcement measures to correct excessive macroeconomic imbalances in the euro area". 23 November 2011.
- ^ a b "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 final – 2011/0386 COD)". Europa. 23 November 2011. Retrieved 20 November 2012.
- ^ a b "Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on the strengthening of economic and budgetary surveillance of Member States experiencing or threatened with serious difficulties with respect to their financial stability in the euro area (COM/2011/0819 final – 2011/385 COD)". Europa. 23 November 2011. Retrieved 20 November 2012.
- ^ a b c "Economic governance: Commission proposes two new Regulations to further strengthen budgetary surveillance in the euro area (MEMO/11/822)". Europa. 23 November 2011. Retrieved 20 November 2012.
- ^ a b "REGULATION (EU) No 473/2013 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 21 May 2013: 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" (PDF). Official Journal of the European Union. 27 May 2013.
- ^ a b "REGULATION (EU) No 472/2013 OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL of 21 May 2013: On the strengthening of economic and budgetary surveillance of Member States in the euro area experiencing or threatened with serious difficulties with respect to their financial stability" (PDF). Official Journal of the European Union. 27 May 2013.
- ^ "Press release: 3227th Council meeting of the Economic and Financial Affairs (ECOFIN) on 5 March 2013" (PDF). Council of the European Union. 5 March 2013. Retrieved 8 May 2013.
- ^ "Legislative observatory - Procedure file 2011/0385 COD. Economic governance: Strengthening of economic and budgetary surveillance of Member States experiencing or threatened with serious difficulties with respect to their financial stability in the euro area. 'Two pack'". European Parliament. Retrieved 20 November 2012.
- ^ "Legislative observatory - Procedure file 2011/0386 COD. Economic governance: Common provisions for monitoring and assessing draft budgetary plans and ensuring the correction of excessive deficit in the euro area. 'Two pack'". European Parliament. Retrieved 20 November 2012.
- ^ "Results of vote in Parliament: 2011/0386 (COD)". European Parliament (Legislative Observatory). 12 March 2013. Retrieved 8 May 2013.
- ^ "Results of vote in Parliament: 2011/0385 (COD)". European Parliament (Legislative Observatory). 12 March 2013. Retrieved 8 May 2013.
- ^ "'Two-Pack' completes budgetary surveillance cycle for euro area and further improves economic governance (Memo 13/196)". European Commission. 12 March 2013. Retrieved 8 May 2013.
- ^ "Green paper on the feasibility of introducing Stability Bonds (COM/2011/0818 final)". EUR-Lex. 23 November 2011. Retrieved 20 November 2012.
- ^ "A Blueprint for a deep and genuine Economic and Monetary Union (EMU): Frequently Asked Questions (MEMO/12/909)". European Commission (Europa). 28 November 2012. Retrieved 5 December 2012.
- ^ a b c "Preparation of Economic and Finance Ministers Council, Brussels, 4 December 2012 (MEMO/12/935)". European Commission (Europa). 3 December 2012. Retrieved 3 December 2012.
- ^ "Press release – 3205th ECONOMIC and FINANCIAL AFFAIRS Council meeting (provisional version)" (PDF). 4 December 2012. Retrieved 4 December 2012.
External links
- Press release on the Six-pack: EU Economic governance "Six-Pack" enters into force, Europa, 12 December 2011
- Overview of all EU instruments for Economic governance: Economic governance in EU, European Commission, 26 October 2012