Faced with high public debt and new investment challenges, the EU is considering modernising its economic governance framework. The Conference focused on the review of economic governance framework for adapting it to geopolitical, economic, environmental and social challenges.
‘In the face of Russia’s war of aggression against Ukraine, the new economic governance framework should ensure flexibility for investment into increasing the defence capabilities of EU Member States. We are living in a changed security situation and we need to advocate for ensuring the security of all EU members,’ Mr Lydeka said in the discussion on the new EU fiscal rules. The aim of the new rules is to achieve credible debt reduction in highly indebted countries and to create incentives for economic growth.
Strengthening national ownership as part of the new model of economic governance was widely discussed at the Conference. Member States will be given more control over the drafting of medium-term fiscal structural plans and will be required to fulfil their commitments thereunder. This is expected to ensure more effective implementation of commitments of EU Member States.
Mr Butkevičius stressed at the Conference that Lithuania, as a low debt risk country, was going to be covered by the preventive part of the new economic governance framework. ‘In order to enhance fiscal discipline in Lithuania, a national reform to enhance the medium-term budgeting system is currently underway. The reform is designed to establish a transparent and efficient medium-term budget system that is closely integrated with the state’s strategic management framework and that contributes to a more accurate and transparent forecasting of public finance’, he said.
In the discussion on open strategic autonomy, Mr Starkevičius emphasised that Russia’s war of aggression against Ukraine has painfully demonstrated how the EU’s economic dependency may be used against the European Union to undermine its economy. ‘Our response to these challenges and our common objectives are to bolster internal production capacities, invest in the innovation ecosystem, and coordinate efforts towards resilient and reliable common supply chains as well as to enhance EU’s technology, infrastructure and cybersecurity. Unity is key to achieving the EU’s goals of resilience and open strategic autonomy,’ he said.
At the Conference, representatives of the EU Member States also actively discussed how to strike the right balance in the area of social well-being, which is essential for the EU’s stability and reforms, and how the integration of the social dimension could support a socially strong Europe.
The Inter-Parliamentary Conference on Stability, Economic Coordination and Governance in the European Union (IPC-SECG) established by a decision of the Conference of Speakers of the EU Parliaments in 2013 is a permanent platform for cooperation between national Parliaments and the European Parliament (EP). Intended to ensure the exchange views and positions on budgetary, economic and social priorities and strategies, the Conference is co-chaired by the Chairs of the relevant committees of the Spanish Parliament who work in close cooperation with the European Parliament.
Spain holds the Presidency of the Council of the EU from 1 July to 31 December 2023.
