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Council approves Germany’s fiscal expenditure path
On 10 October 2025, ministers adopted a recommendation endorsing the maximum net expenditure path for Germany over the next five years, as well as the requested extension of the fiscal adjustment period to seven years, as laid out in its national medium-term fiscal-structural plan.
Council approves fiscal expenditure paths for Belgium and Bulgaria
Ministers adopted recommendations endorsing the maximum net expenditure paths for Belgium and Bulgaria in the period ahead, as laid out in those countries’ national medium-term fiscal-structural plans.
For Belgium, which requested an extension of the fiscal adjustment period to seven years, the Council also endorsed the set of reform and investment commitments which underpin this extension.
In the context of the implementation of the EU’s new economic governance rules, the Council endorsed Hungary’s medium-term fiscal-structural plan and set its net expenditure path.
Now that the Council has adopted its recommendations, Hungary has certainty as regards the budgetary path it will follow in the coming years and can plan accordingly.
Council sets fiscal expenditure paths for 21 member states
As the next step in the implementation of the EU’s new fiscal rules, the Council today adopted recommendations endorsing the first-ever medium-term fiscal-structural plans and setting the net expenditure paths for the following member states: Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Greece, Ireland, Italy, Latvia, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain and Sweden.
Now that the Council has adopted its recommendations, member states have certainty as regards the budgetary paths they will follow in the upcoming years, and they can plan accordingly.
Eurogroup statement on fiscal policy orientation for 2025
Ministers took stock of the macroeconomic and fiscal developments and prospects in the euro area and exchanged views on the fiscal policy orientation for 2025.
We agreed today that a slightly contractionary fiscal stance is appropriate at the current juncture. In view of the revised fiscal framework entering into force, we will continue to pursue ambitious structural reforms and preserve the level of investment, including in areas of common EU priorities.
Paschal Donohoe, President of the Eurogroup
Council and Parliament strike deal on reform of fiscal rules
The Council and European Parliament negotiators reached a provisional political agreement on the proposed reform of the EU’s economic governance framework.
They agreed to maintain the reform’s overall objective of reducing debt ratios and deficits in a gradual, realistic, sustained and growth-friendly manner while protecting reforms and investment in strategic areas such as digital, green, social or defence. At the same time, the new framework will provide appropriate room for counter-cyclical policies and address macroeconomic imbalances.
The agreement on the preventive arm of the economic governance framework is subject to approval by the Council in the committee of permanent representatives and by the Parliament economic affairs committee before going through a formal vote in both the Council and the Parliament. The regulation on the corrective arm and the directive on requirements for budgetary frameworks of member states only require the Parliament to be consulted.
Member states’ EU ambassadors formally agreed on the proposed reform of the EU’s economic governance framework by approving a mandate for negotiations with the European Parliament on the preventive arm regulation and an agreement in principle with a view to consulting the Parliament on the corrective arm regulation and the directive on requirements for national budgetary frameworks.
This will pave the way for negotiations with the Parliament on the preventive arm regulation early next year.
The Council discussed the proposed reform of the EU’s economic governance framework.
We have made very significant progress on the basis of the intense consultations we’ve had over the past weeks and months. We’re almost there. It was not possible to reach an agreement on all political, legal and technical consultations, but we hope to finalise this in the coming days and weeks, so that we can find a political agreement before the end of the year.
Nadia Calviño, acting Spanish first vice-president and minister for economy and digitalisation
Ministers exchanged views on the proposed reform of the economic governance framework, which consists of three proposals:
a regulation on the effective coordination of economic policies and multilateral budgetary surveillance
a regulation on speeding up and clarifying the implementation of the excessive deficit procedure
a directive on requirements for the budgetary frameworks of the member states
Today we are in agreement on the core elements and mechanisms of the new fiscal rules, and on the need to have fiscal discipline, credibility and confidence but also to ensure counter-cyclicality and the right incentives for the growth-enhancing investments and reforms that respond to our shared European priorities. There is a strong commitment on the part of all member states to reach a balanced deal before the end of the year.
Nadia Calviño, acting Spanish first vice-president and minister for economy and digitalisation
The Council discussed the European Commission proposal on a reform of the EU economic governance framework which was presented on 26 April 2023. On 14 March, the Council had agreed its orientations for the reform.
It is important that the Council’s priorities from March remain the guiding thread throughout the negotiations. This was highlighted by ministers in the discussions today.
Elisabeth Svantesson, Minister for Finance of Sweden and President of the Council
EU leaders endorse Council orientations for a reform
At the European Council meeting, EU leaders endorsed the Council orientations for a reform of the economic governance framework, which aims to make it fitter for the challenges that the EU is currently facing.
Economic governance framework: Council agrees conclusions on a reform
Ministers agreed conclusions on orientations for a reform of the EU economic governance framework. The conclusions contain areas of convergence of views among member states and areas for further work on a reformed framework. They constitute political guidance for the European Commission for the preparation of relevant legislative proposals.
Fiscal rules are important and should remain an essential instrument in our economic policy toolkit. Now they should be adapted to a changing world.
Elisabeth Svantesson, Minister for Finance of Sweden
The Eurogroup took stock of macroeconomic and fiscal developments in the euro area and exchanged views on the fiscal policy guidance for 2023 and 2024. Against the backdrop of a Commission communication of 8 March, ministers adopted a statement on fiscal policy guidance for 2024.
We agreed that fiscal policies should aim to ensure debt sustainability in the medium term while raising growth potential in a sustainable manner. We did recognise the need to address the green and digital transitions, but sent out important signals regarding the design of budgetary measures and the need to avoid permanent deficit-increasing measures as an important element of preparations for budgets for next year.
Paschal Donohoe, President of the Eurogroup
Ministers exchange views on economic governance review
In their interventions, ministers gave political guidance as regards the broad topics put forward by the Swedish Presidency: how to ensure country-specific fiscal adjustment while maintaining multilateral surveillance anchored in common EU fiscal rules and benchmarks; views on a possible increased focus on medium-term planning; and the potential role of a risk based analysis of public debt developments in identifying country-specific challenges.
The Presidency concluded that further work was needed in order to find an agreed way forward.
Ministers discussed a communication setting out the orientations for a reformed EU economic governance framework that the Commission had put forward on 9 November 2022.
They shared their initial positive observations, voiced their remaining questions and concerns and looked forward to constructive discussions on the various aspects of the suggested reforms in the months to come, in order to provide the Commission with the political backing it needs for its next steps.
Eurogroup statement on fiscal policy orientations for 2023
The Eurogroup discussed fiscal policy orientations for 2023. In light of Russia’s war of aggression against Ukraine, in the wake of the global pandemic, the Eurogroup considered that supporting overall demand through fiscal policies in 2023 was not warranted, the focus being instead on protecting the most vulnerable, while maintaining the agility to adjust, if needed.
Fiscal policies in all countries should aim at preserving debt sustainability, as well as raising the growth potential in a sustainable manner to boost the recovery.
Although the current global context poses significant challenges, the Eurogroup has full confidence in the resilience of the euro area economies and remains fully committed to ensuring the conditions for high sustainable growth and achieving our policy objectives.
Eurogroup statement on the updated draft budgetary plans of Germany and Portugal
The Eurogroup welcomes the submission of the Draft Budgetary Plans for 2022 ofGermany and Portugal, as well as the Commission Opinions issued on 19 May 2022.
The DBP exercise is key to the coordination of fiscal policy in the euro area. The Eurogroup is continuing its strong coordination of fiscal policy in the euro area to weather the heightened risks and uncertainties, and their impact on the economy, as agreed on 14 March 2022.
Eurogroup statement on the fiscal guidance for 2023
The Eurogroup discussed fiscal policy coordination for 2023, welcoming the Commission Communication of 2 March 2022, and its view of transitioning from an aggregate supportive fiscal stance in the euro area to a broadly neutral aggregate fiscal stance next year.
At the same time, the Eurogroup stands ready toreact to the evolving economic situation, in view of the uncertainty provoked by the economic impact of Russia’s war against Ukraine.
The Eurogroup also stated that in relation to the economic governance review it will continue to engage actively in this process as per its Work Programme and in cooperation with the Council Presidency and in the appropriate format.
Eurogroup debates on the euro area dimension of the macroeconomic imbalances procedure
As part of the economic governance review, ministers reflected on the euro-area dimension of the macroeconomic imbalances procedure.
Eurogroup recognises that macro-economic imbalances are of particular importance to the euro area and that the Macroeconomic Imbalances Procedure has supported their unwinding. It was particularly successful to reduce current account deficits but admittedly less effective to reduce high surpluses.
Paschal Donohoe, President of the Eurogroup
Eurogroup discusses economic governance review – euro area aspects
Ministers discussed the euro area fiscal framework and arrangements for financial assistance and post-programme surveillance. The discussion was based on the Eurogroup work plan that specifies its involvement in the economic governance review.
We had our first substantive discussion on the euro area dimension of the economic governance framework. And in this part of our meeting, we heard many views from governments in relation to the draft budgetary plan process, the surveillance procedures that are in place, the fiscal rules, the value of national economic policy coordination, and also in relation to how we can ensure that we have commitments in place regarding our national finances, that they are fulfilled and overseen in a transparent way.
Paschal Donohoe, President of the Eurogroup
Economy and finance ministers discuss economic governance and recovery
During the economic and Financial Affairs Council, ministers exchanged views on the EU economy following the COVID-19 pandemic, and on the implications of recent developments for economic governance. They discussed the future of the EU’s economic governance framework and gave their initial views on the way forward. This topic will be discussed further and ministers will continue their consultations in order to reach a broad consensus in due course.
Eurogroup discusses the way forward for economic governance review
In light of the Commission's relaunch of the economic governance review, ministers discussed the process through which Eurogroup (and Eurogroup in the inclusive format for relevant items) meetings will consider the governance review, and held an initial discussion on how the Eurogroup could address challenges to the coordination of fiscal and economic policies within the euro area and to the functioning of EMU in a post-COVID economic environment.
We have made very significant progress on the basis of the intense consultations we’ve had over the past weeks and months. We’re almost there. It was not possible to reach an agreement on all political, legal and technical consultations, but we hope to finalise this in the coming days and weeks, so that we can find a political agreement before the end of the year.
Today we are in agreement on the core elements and mechanisms of the new fiscal rules, and on the need to have fiscal discipline, credibility and confidence but also to ensure counter-cyclicality and the right incentives for the growth-enhancing investments and reforms that respond to our shared European priorities. There is a strong commitment on the part of all member states to reach a balanced deal before the end of the year.
It is important that the Council’s priorities from March remain the guiding thread throughout the negotiations. This was highlighted by ministers in the discussions today.