27.4.2023
EN
Official Journal of the European Union
C 146/57
4.
Specific comments 4.1.
Since net primary expenditure plans are proposed to become the main evaluation parameter, the EESC underlines the need to have clear and transparent rules for calculating primary expenditures.
Discretionary revenue measures, as well as cyclical unemployment expenditures, must therefore be objectively and clearly defined, and agreed by all Member States.
4.2.
While the exclusion of cyclical unemployment expenditures in the expenditure plans may be understandable, it must not prevent Member States from addressing any need to improve the functioning of the labour market in order to reduce structural unemployment since such costs, even though not excluded, may add substantially to higher growth and employment in the medium term, thereby improving debt sustainability.
At the same time, good medium-term working conditions have to be promoted.
It is important that the rules are clear and robust, making sure that any kind of ‘creative accounting’ is not pursued by Member States.
4.3.
The EESC welcomes the fact that increased quality and quantity of public investments is outlined as a factor for consideration in the process of achieving debt sustainability.
The EESC also welcomes the extension of the adjustment path, which may be granted for a maximum of three years, provided Member States underpin their plans with a set of reforms and investments that support sustainable growth and debt sustainability.
4.4.
To achieve the EU climate targets, the capital stock needs to be completely overhauled and public and private investments expanded.
In the past, the EESC has called for the introduction of a golden rule of public investments to make sure that the massive investment gap is closed.
This is not part of the Commission proposal.
Still, the Commission’s proposal entails important elements to strengthen public investments.
However, it is not really possible to quantify the public investments that will be created since much will depend on the negotiations between the Commission and the Member States on the fiscal-structural plans.
Therefore, the EESC underlines that further initiatives might be necessary to make sure that sufficient private and public capital is mobilised for the green transition and social cohesion.
4.5.
Because of the risk-based approach proposed by the European Commission, the debt sustainability analysis (DSA) will become crucial in the future EU economic governance framework.
The EESC points out that calibrating the details of the debt sustainability analysis, including whether or not climate-related risks are included in the DSA, is a highly political question and should be debated thoroughly with competent stakeholders.
The final parameters of the DSA must be decided in a democratic and transparent manner.
Independent fiscal institutions could play an important role in assessing the appropriateness of underlying assumptions by participating in the debate and giving information to national parliaments.
4.6.
To ensure transparency and facilitate effective monitoring of the implementation of the medium-term fiscal-structural plans, Member States are required to submit annual progress reports and to detail the implementation status of reforms and investments.
These reports and the evaluations carried out by the Commission and Council in the context of annual surveillance should be made publicly available.
4.7.
The EESC deems that the envisaged increased attention to flow-related variables in the Macroeconomic Imbalance Procedure (MIP) needs to be specified and quantified during the next steps of the economic governance reform, making it symmetric, operational and transparent.
4.8.
The EESC underlines the importance of establishing and developing an appropriate process for the first screening of imbalances in the Alert Mechanism Report (AMR) and to determine whether imbalances exist in the in-depth reviews (IDRs).
Recommendations should be assessed with respect to European growth drivers and their impacts on economic development.
The meaning of the need for more forward-looking surveillance with a view to swiftly detecting and addressing emerging imbalances need to be spelled out in detail.
4.9.
The EESC emphasises the importance of robust rules, which are able to function in changing economic conditions, and the need for commitment and ownership by Member States.
In order to increase investments and productivity levels across the EU, the fiscal framework reform must not be delayed.