June 2012

Did you Know?

You can obtain summaries of the economies of Member States, by accessing the interactive map and then clicking on the country.

EDC News: Financial crisis in EU Member States

The financial crisis in some EU member states has exposed fundamental problems and unsustainable trends in many European countries. This further highlighted the extent to which EU's economies are interdependent and raises awareness of the need for greater economic policy coordination across the EU. The first step toward this is the new EU economic governance. The new EU economic governance is based on three main blocks:

• A reinforced economic agenda with closer EU surveillance.

• Action to safeguard the stability of the euro area.

• Action to repair the financial sector.

The EU and its Member States have taken a series of important decisions that will strengthen economic and budgetary coordination for the EU as a whole and for the euro area in particular. In addition, the Commission have developed two new pieces of legislation aimed at strengthening the surveillance mechanisms and promoting further economic integration and convergence in the euro area. This will enter into force in mid-December. The first piece of proposed legislation will apply to all countries in the euro area, with special provisions made for those which are subject to an excessive deficits procedure (EDP). The second sets out explicit rules for enhanced surveillance. It will be applicable in three cases:

• for countries facing severe difficulties with regard to their financial stability;

• those in receipt of financial assistance on either a precautionary basis or as part of a full-scale assistance programme; and

• for countries that are in the process of exiting such assistance.

Further information can be found on the European Commission website, under Economic and Financial Affairs