Minister McGrath welcomes publication of legislative proposals for reform of European governance framework
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From: Department of Finance
- Published on: 26 April 2023
- Last updated on: 12 April 2025
The Minister for Finance Michael McGrath welcomes today’s publication by the European Commission of legislative proposals for reform of the European governance framework.
The reforms aim to strengthen public debt sustainability and enhance sustainable and inclusive economic growth through investment and reform. The Commission intends that the new framework will place a greater emphasis on the medium-term, while at the same time improving both national ownership and enforcement of the rules.
Speaking after the publication of the legislative proposals, Minister McGrath said:
“I welcome the publication of the European Commission’s legislative proposals for reforms of the economic governance framework today. Ireland has always been a clear supporter of the need for an effective set of fiscal rules to prevent the build-up of dangerous imbalances and unsustainable debt levels within the monetary union.
"I think it is important at the outset to acknowledge the work that has gone into the Economic Governance Review to this point. The Review is a substantial undertaking and producing the legislative proposals represents a significant milestone on the path to reform.
"That being said, we still have a significant way to go towards reaching a final agreement on a reformed framework. Discussions will continue at a European level over the coming months.
"Of course, as we can expect in negotiations of this nature, it is likely that there will continue to be diverging views among Member States on certain points.
"It is therefore vital that the Commission and Member States continue to engage effectively and in a constructive spirit to resolve outstanding issues in light of the publication of the legislative proposals.”
Notes
The EU’s economic governance framework is a set of common rules for national fiscal and economic policies which apply to all member states. It has been instrumental in safeguarding macroeconomic stability and growth in the Union and has helped member states achieve their economic and fiscal policy goals. These common rules serve to ensure the sustainability of public finances and promote convergence while addressing macroeconomic imbalances.
The economic governance framework is based on:
- the Treaty on the functioning of the EU – sets benchmarks for government deficits below 3% of gross domestic product (GDP) and government debt below 60% of GDP
- the stability and growth pact – defines the rules for monitoring and coordination of national fiscal and economic policies
- the six-pack and two-pack legislations – reinforce fiscal surveillance after the financial crisis and create the macroeconomic imbalance procedure to ensure oversight of imbalances emerging outside the fiscal sphere
- code of conduct documents - guidelines to interpret the six-pack and two-pack legislations