Commission proposes new economic governance rules fit for the future

The Commission has today presented legislative proposals to implement the most comprehensive reform of the EU's economic governance rules since the aftermath of the economic and financial crisis. The central objective of these proposals is to strengthen public debt sustainability and promote sustainable and inclusive growth in all Member States through reforms and investment.

The proposals address shortcomings in the current framework. They take into account the need to reduce much-increased public debt levels, build on the lessons learned from the EU policy response to the COVID-19 crisis and prepare the EU for future challenges by supporting progress towards a green, digital, inclusive and resilient economy and making the EU more competitive.

The new rules will facilitate necessary reforms and investment and help reduce high public debt ratios in a realistic, gradual and sustained manner, in line with President von der Leyen's 2022 State of the Union address. The reform will make economic governance simpler, improve national ownership, place a greater emphasis on the medium term and strengthen enforcement, within a transparent common EU framework.