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REPORT (COM(2025)0591 – C100227/2025 – 2025/0311(COD))

On the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) No 1173/2011 and (EU) No 473/2013 as regards alignment with the EU economic governance framework and further simplification of that framework

A-10-2026-0099

Committee on Economic and Monetary Affairs · Rapporteur: Markus Ferber, Carla Tavares

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Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.

Parliament's amended version of a Commission proposal to amend Regulations (EU) No 1173/2011 and (EU) No 473/2013 to align them with the 2024 economic governance reform and simplify the framework. It deletes the interest-bearing deposit and the significant deviation procedure, and sets fines of up to 0,02% of GDP paid every six months for Member States that fail to take effective action to correct an excessive deficit. It requires draft budgetary plans to be submitted by 15 October and to comply with the net expenditure path or the corrective net expenditure path, and sets out their content. It reduces reporting obligations, removes economic partnership programmes and ex ante reporting on debt issuance to the Eurogroup, and requires follow-up reports on effective action every six months or quarterly. It requires the Commission to report every five years on the application of both Regulations and to make the reports public.

Committee position. The Committee on Economic and Monetary Affairs proposes that Parliament adopt its first-reading position amending the Commission proposal, aligning Regulations (EU) No 1173/2011 and (EU) No 473/2013 with the 2024 economic governance reform and simplifying the framework.

Key points

  1. Regulation (EU) No 1173/2011 is amended to set out a system of sanctions for enhancing the enforcement of the Stability and Growth Pact in the euro area.
  2. The interest-bearing deposit triggered by failure to comply with the significant deviation procedure is deleted, along with Articles 4 and 5 of Regulation (EU) No 1173/2011.
  3. If the Council decides a Member State has not taken effective action, the Commission must within 20 days recommend a fine of up to 0,02% of the latest estimate of the previous year's GDP, paid every six months until effective action is assessed.
  4. The fine decision is deemed adopted unless the Council rejects it by qualified majority within 10 days; the Council may amend the recommendation by qualified majority.
  5. Information the Commission sends to the Council under the Regulation must simultaneously be made available to Parliament, subject to confidentiality arrangements, and Member States may request redaction of sensitive information.
  6. Member States' budgetary procedures must be consistent with recommendations under Regulation (EU) 2024/1263, Council recommendations and decisions under Regulation (EC) No 1467/97, decisions under Regulation (EU) No 1173/2011 and Directive 2011/85/EU.
  7. Member States must submit a draft budgetary plan for the forthcoming year to the Commission and the Eurogroup by 15 October, made public once submitted, containing specified information on net expenditure, revenue and expenditure measures, projections and budget balance.
  8. The draft budgetary plan must explain compliance with the net expenditure path set by the Council or, for Member States in an excessive deficit procedure, with the corrective net expenditure path.
  9. Where the Commission identifies particularly serious non-compliance, it must adopt its opinion within two weeks and request a revised plan within three weeks; it must adopt a new opinion within three weeks of the revised plan.
  10. Member States under a Council recommendation under Article 126(7) TFEU must submit follow-up reports on effective action every six months, and quarterly under a Council notice under Article 126(9) TFEU, until the excessive deficit decision is abrogated.
  11. Economic partnership programmes are obsolete and the related provisions are deleted; ex ante reporting by Member States on public debt issuance plans to the Eurogroup is eliminated.
  12. The Commission must report every five years on the application of both Regulations, reviewing their effectiveness, coordination of economic policies and contribution to sustainable and inclusive growth, and make the reports public.

Who is affected

  • Member States whose currency is the euro, which are subject to the sanctions system and the draft budgetary plan requirements.
  • Member States in an excessive deficit procedure, which must submit follow-up reports on effective action and comply with the corrective net expenditure path.
  • National independent fiscal institutions, whose role is aligned with Article 8a of Directive 2011/85/EU and Regulation (EU) 2024/1263.
  • The Commission, which must recommend fines, adopt opinions on draft budgetary plans and report every five years.
  • The European Parliament, which receives information and may hold an economic dialogue with the Council and the Commission.

Figures and deadlines

  • Fine of up to 0,02% of the latest estimate of the previous year's GDP, paid every six months.
  • Commission must recommend a fine within 20 days of the Council decision.
  • Council must reject the Commission's recommendation within 10 days for the fine decision to be deemed adopted.
  • Draft budgetary plans must be submitted by 15 October each year.
  • Commission opinion within two weeks of submission of the draft budgetary plan in cases of particularly serious non-compliance.
  • Revised draft budgetary plan requested within three weeks of the Commission's opinion; new opinion within three weeks of the revised plan.
  • Follow-up reports on effective action every six months under Article 126(7) TFEU and quarterly under Article 126(9) TFEU.
  • Commission reports on the application of the Regulations every 5 years.

Legal basis: Article 121(6) in combination with Article 136 of the Treaty on the Functioning of the European Union.