The economic crisis – The EU’s response

The European Union is responding to the global economic crisis through actions on different levels. They include:

• fiscal consolidation and strengthened economic governance
• reform and repair of the financial sector
• reforms to boost growth and job creation
• supporting EU countries in difficulty, while the reforms produce results

Overviews:

Timeline showing developments from 2008 to the present, with key documents and summaries

Summary of actions and links on economic governance
- Timeline of the financial crisis response including regulations, directives and proposals
- Timeline on rating agencies including links to regulations, directives and proposals

The economic situation in individual countries
- Balance-of-payments assistance
- Monthly summary of state aid measures
- Macro-Financial Assistance to non EU-countries

Fiscal consolidation and strengthened economic governance

The EU is taking concrete steps for a much stronger integration within the Economic and Monetary Union. EU action is focusing on restoring the sustainability of public finances and addressing other macroeconomic imbalances as well as on providing financial assistance to Member States in difficulties. In addition, new rules are set to ensure stronger and more effective economic governance, particularly for the euro area, with adequate mechanisms to monitor progress and ensure enforcement.

Key elements

• Treaty on stability, coordination and governance in the Economic and Monetary Union (fiscal compact): This treaty, also known as the "fiscal compact", entered into force on 1 January 2013 following its ratification by Finland. The treaty aims to strengthen fiscal discipline in the euro area through the "balanced budget rule" and the automatic correction mechanism.
• Treaty establishing the European Stability Mechanism (ESM): Euro area countries signed it on 2 February 2012. The ESM is designed to safeguard financial stability in the euro area by providing conditional financial assistance to Member States under severe market pressure. It entered into force in October 2012 and will gradually replace  the temporary European Financial Stability Facility (EFSF), created by euro area countries in May 2010.
• The “Six pack”: This reinforced the Stability and Growth Pact with new rules on economic and fiscal surveillance and introduced a new Macroeconomic Imbalances Procedure, which aims to prevent the emergence of harmful imbalances and to correct those already existing. The "Six Pack" entered into force in December 2011.
• The European Semester: This allows EU Member States to coordinate ex ante their budgetary and economic policies, in line with both the Stability and Growth Pact and the Europe 2020 strategy. It was approved by the Member States in September 2010.
• The "Two Pack", a strengthened budgetary surveillance in the euro area: The European Commission proposed two new regulations on 23 November 2011. These are in the final stages of the legislative procedure.
• Green paper on stability bonds: Published by the European Commission on 23 November 2011, it structures the political debate in the EU on the rationale, pre-conditions and possible options of coordinated or joint debt issuance.
  More information
• Six-pack? Two-pack? Fiscal compact? A short guide to the new EU fiscal governance.

Reform and repair of the financial sector

The EU action is aimed at implementing a stricter regulatory regime for the financial sector not only internally but also on a global level (G20). At the same time, it is necessary to strengthen the financial sector so that banks can support the economy by providing credit.

Key elements

Reforms to boost growth and job creation

The EU action also aims to encourage structural reforms and to support growth-enhancing investments; to strengthen the single market especially for services, energy and e-commerce; and to tackle unemployment, especially youth unemployment. The aim is to create the conditions for smarter, more sustainable growth.

Key elements

Supporting EU countries in difficulty

The EU’s economic governance system allows for an appropriate steer and follow-up at EU level. Each year, the Commission carefully analyses the National Reform Programme of each Member State and checks whether the policies are in line with the orientation set out above. Its findings are subsequently reflected in the Country-Specific Recommendations that the Commission adopts in May and presents for approval to the European Council in June. The newly introduced Macroeconomic Imbalance Procedure guarantees enhanced monitoring of macroeconomic imbalances with the possibility of sanctions for euro area Member States that do not address these when they become excessive.

Support for countries in difficulty

Statistics, graphs and public opinion

• Economic governance in graphs
• Background on the Euro Plus Pact and economic overview (December 2011)
• Statistics: Financial turmoil
• Statistics: National accounts
• Statistics: Balance of payments
• Survey (European Parliament): Europeans and the crisis
• Survey (European Parliament): Europeans’ perceptions on the state of the economy
• Survey (Eurobarometer): Economic governance in the EU
• Survey (Eurobarometer): Europeans’ evaluation of the economic situation and main concerns
• Economic sentiment and business climate indicators

Long-term financing - http://ec.europa.eu/internal_market/finances/financing-growth/long-term/index_en.htm.

См. на официальном на сайте – http://europa.eu/newsroom/highlights/financial-crisis/index_en.htm.