EU Proposes Simplifications to Economic Governance Rules
The European Commission has unveiled a set of proposals aimed at simplifying EU economic governance rules. The changes, part of the 'Omnibus-I' package, target reducing regulatory and reporting burdens, particularly for small and medium-sized enterprises (SMEs).
Key among the proposals is the simplification of funding arrangements for non-euro area Member States using the balance of payments facility. The Commission suggests replacing the 'back-to-back' funding method with a 'diversified' strategy.
The proposals also include amendments to the regulation on enhanced and post-programme surveillance for euro area Member States facing financial difficulties. The aim is to clarify and refine surveillance processes, ensuring consistency with the comprehensive reform of April 2024 and reducing reporting burdens.
The Commission has also proposed aligning fiscal surveillance rules with the reformed Stability and Growth Pact by amending the sanctions regulation and the Draft Budgetary Plan regulation. These changes aim to make financial assistance more efficient and reduce redundant administrative requirements.
The European Commission's proposals, submitted as part of its simplification agenda, seek to strengthen the competitiveness and resilience of the European economy while maintaining sustainability goals. By reducing regulatory and reporting burdens, especially for SMEs, these changes aim to create a simpler and faster Europe.
