The European Commission presents the European Semester Spring package 2022
The Commission proposes retaining the general safeguard clause in the Stability and Growth Pact until 2024 because of the high degree of uncertainty and downward corrections in its recent Economic Forecasts.
It also calls for a prudent fiscal policy in 2023 to ensure medium-term sustainability. Likewise, the package includes a report on compliance with the deficit and debt criteria in 18 Member States, including Spain, whose highlighted vulnerabilities would be the “high external debt, both public and private, in a context of high unemployment”. However, in view of current circumstances, the Commission does not believe it is appropriate to activate the Excessive Deficit Procedure, and it shall assess the countries’ budgetary situation in the autumn.
The Commission also presents a proposal for a Decision with guidelines on employment policies, an and of the macroeconomic imbalances across twelve Member States, and post-programme surveillance reports, including Spain’s, which concludes that the repayment capabilities remain solid.
The country-specific recommendations are back: Spain
This year the European Commission reintroduced country-specific reports and recommendations. In the case of Spain, with a view to 2022 and 2023, it believes it is appropriate to continue with a budgetary policy that is prepared to adjust current spending as the situation develops. It also calls for increased public investment in the green and digital transitions using the Recovery and Resilience Mechanism, the RePowerEU scheme and other European funds. From 2023 on, it advocates maintaining prudent fiscal positions and carrying out credible policies to reduce debt and the deficit. It also urges fulfilling the milestones and objectives set out in the “Spain Can” Plan and promoting the circular economy to achieve the sustainability standards set by the EU. Finally, it touches upon reducing dependence on fossil fuels, expanding renewable energy grids with a focus on self-consumption and decentralised facilities, and securing further investments in storage, interconnections, increased energy efficiency and renewable hydrogen.
You will find this and other key issues in the European news, as well as a look at the main meetings in the European institutions during the week from May 30 to June 4, in our newsletter “The EU in Headlines”.
Related news
Meeting in Brussels, the Heads of State and Government adopted a series of conclusions on energy, the economy, the war in Ukraine, critical infrastructure and external relations.
The president of the CEOE expressed concern among the business community about the slowing of the recovery due to rising production costs and the high degree of uncertainty.
The President of the European Commission sent a letter to the informal European Energy Council setting out a number of recommendations and areas for action.
The CEOE’s European Union Committee, chaired by Jesús Ortiz met, in the presence of the European Commission, to discuss two issues of special interest and consequence for companies. They covered, on the one hand, the latest developments and next steps for European energy policy and, on the other, the latest with the implementation of the Next Generation EU funds.