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Economic surveillance of eurozone countries in budgetary difficulties
This regulation is designed to boost economic and budgetary surveillance for eurozone countries experiencing or threatened with serious financial instability.
ACT
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.
SUMMARY
The regulation, which came into force in May 2013, builds on existing European Union rules relating to budgetary and macroeconomic surveillance.
It applies to EU countries that use the euro currency (known as eurozone or euro area countries) and which are facing serious budgetary difficulties that could lead to financial instability. For example, they may be having difficulty bringing their public debt down to sustainable levels or they may have difficulty obtaining affordable loans. The main aim is to ensure stability in the eurozone by avoiding potential negative effects on other eurozone countries.
It therefore also applies to eurozone countries requesting or receiving financial assistance from EU countries, non-EU countries, EU stability mechanisms or international financial institutions.
The regulation covers three types of closer surveillance.
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1. |
Enhanced/reinforced surveillance: this is put in place for a eurozone country in budgetary difficulties when there is a risk of negative spill-over effects on other eurozone countries (due to the interdependence of their markets, particularly for capital). Here, the eurozone country in question provides additional information to the Commission about its budget. The eurozone country then works with the Commission to find ways to improve its public finances. The Commission can decide every 6 months whether to extend this cooperation or not. |
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2. |
Macroeconomic adjustment programme: this applies to countries that receive financial assistance (e.g. loans). The financial assistance usually comes with conditions attached to its disbursement to the eurozone country in question. These conditions must be consistent with the macroeconomic adjustment programme that must be approved by the Council following a proposal by the country in question. The aim here is also to help the eurozone country improve its public finances. |
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3. |
Post-programme surveillance: after all the tranches of financial assistance have been disbursed, the eurozone country concerned remains under post-programme surveillance (until at least 75 % of the financial assistance has been repaid). Here, the Commission, in liaison with the European Central Bank, goes on regular missions to the eurozone country, which reports back on what it is doing to improve its public finances. If necessary, the Commission can propose to the Council that it recommends that the country concerned adopts additional measures. |
REFERENCES
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Act |
Entry into force |
Deadline for transposition in the Member States |
Official Journal |
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Regulation (EU) No 472/2013 |
30.5.2013 |
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OJ L 140 of 27.5.2013 |
RELATED ACTS
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 (OJ L 140 of 27.5.2013).
Commission Delegated Regulation (EU) No 877/2013 of 27 June 2013 supplementing Regulation (EU) No 473/2013 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 (OJ L 244 of 13.9.2013).
Communication from the Commission concerning two lists of financial assistance instruments under Regulation (EU) No 472/2013 (OJ C 300 of 16.10.2013).
Last updated: 04.04.2014