On the european Semester for economic policy coordination 2024

The Committee on Budgets calls on the Committee on Economic and Monetary Affairs, as the committee responsible, to incorporate the following suggestions into its motion for a resolution:

1.Notes that the Union economy is expected to gradually recover in 2024, with a forecast growth of 1.3 % of GDP and a generally robust labour market; points, however, to the various risks and uncertainties, which put a strain on European businesses, public finance and people, and affect some Member States more than others;

2.Takes note of the proposed reform of the economic governance framework of the Union; believes that the new framework should ensure clear and flexible implementation and provide the adequate fiscal space for Member States to invest in the EU’s strategic priorities; recalls its position that an EU-level permanent crisis instrument will contribute to ensuring a sufficiently high level of strategic investment and an appropriate fiscal stance at the aggregate level;

3.Stresses the success of the Recovery and Resilience Facility (RRF) in supporting the recovery of EU economies and notes its positive impact on the implementation of the country-specific recommendations and on investments in EU priorities; welcomes the fact that most Member States have submitted revised national plans, including REPowerEU chapters; stresses that investments in line with European objectives, notably those of the RRF and REPowerEU, should be treated favourably for the calculation of excessive debt;

4.Recalls that the substantial increase in interest rates has driven up the borrowing costs for the European Recovery Instrument (EURI); reiterates, therefore, its call for progress on the introduction of new own resources; strongly supports the Commission proposal for a EURI instrument outside the ceilings of the multiannual financial framework to cover the excess costs for interest payments;

5.Calls for Parliament’s role in the reform of the economic governance framework and the European Semester to be strengthened.