The European semester - for a more robust economy

The "European semester", a cycle of economic policy coordination to be launched as from next year, moved a step forward on 7 September, when the Economic and Financial Affairs Council (Ecofin) approved a reform that will allow its introduction.

Jean-Claude Trichet, President of the European Central Bank, Didier Reynders, Minister for Finance of Belgium
(Council Presidency), Elena Salgado, Minister for Economic Affairs and Finance of Spain and Eurogroup Vice-President
© European Union

The European semester is a six-month period every year during which the member states' budgetary and structural policies will be reviewed to detect any inconsistencies and emerging imbalances. The aim is to reinforce coordination while major budgetary decisions are still under preparation.

In a new monitoring cycle, the European Council each March will identify the main economic challenges facing the EU and give strategic advice on policies. Taking this guidance into account, the member states will present their medium-term budgetary strategies in their stability and convergence programmes. At the same time, they will draw up national reform programmes setting out the action to be undertaken to strengthen their policies in areas such as employment and social inclusion. All these programmes will be issued simultaneously in April.

Each July, on the basis of the programmes submitted in April, the European Council and the Council will provide policy advice before member states finalise their budgets for the following year.

The European semester is one of the first initiatives to emerge from a task force chaired by the President of the European Council, Herman Van Rompuy, with a view to strengthening European provisions on economic governance.

More information:
Press release (pdf)
Webcast of press conference
Stability and Growth Pact