Cinzia. Alcidi

The Trade-Off between Fiscal and Competitiveness Adjustments

A centrepiece of the new economic governance structure for the euro area is the so-called European Semester, whose first cycle closes each year in early July with the endorsement of the country-specific recommendations (CSRs) by the European Council. Member state governments are then expected to implement such recommendations into budgetary decisions, structural reforms and employment policies. The recommendations are formulated on the basis of specific challenges previously identified by the Commission in the framework of the annual growth survey (budget and structural challenges) as well as within the macroeconomic imbalances procedure and after hearings of the European Parliament opinion.