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Domande GOV POL, Evolution of the SGP, EUROPE GENERAL INTRO, Organs and…

- - - - Up to the signature of the Intergovernmental
        Treaty in 2012, the TSCG.
        [not part of legal order of the Union]
        
        Followed then by the Two pack
        legislation in 2013.
        Which focuses on additional coordination and more frequent and in-depth monitoring.
- - - - Regulation 1175/2011 on Surveillance
        
        Minor changes on preventive and correcting arms
        
        sets fiscal policy requirements for MS with fiscal deficit exceeding 3% of GDP.
        Reference points remain the MTOs.
        
        The adjustment path determined by the MS will be evaluated by the EU from several different aspects: along of keeping track of structural budgetary balance EU will also examine public expenditure growth rates
        
        if a MS has more than 60% of GDP as sovereign debt it will be required more than 0.5 per cent annual adjustment in public balance
        
        The effective implementation of the European Semester
      - Regulation 1177/2011 on EDP
        
        Regarding Path's corrective arm:
        Debt criterion will be given more emphasis, and put on an equal footing with deficit developments
        
        The annual pace of debt reduction is sufficient if the total amount of debt reduction during the last 3 years is at least 1/20 (or 5%) of the amount by which the debt exceeds a certain reference level.
      - Regulation 1173/2011 on Sanctions
        
        while implementing the Pact, sanctions will be applied earlier
        
        If a country deviates from expected adjustment rate, it will receive a Council recommendation.
        If failure to comply is repeated this is followed by
        
        interest-bearing deposit
        
        converted into a non-interest bearing deposit amounting to 0.2 percent of GDP
        
        converted lastly into a fine
      - Council Directive 85/2011/EU
        
        Aims to ensure that the Member States archieve the reflection of Pact's objectives into national budget
        
        Defines the minimum requirements for budgetary planning, transparency and implementation that have to appear in national fiscal practices by the end of 2013.
    - - Regulation 1776/2011 on Excessive Imbalance Procedure (EIP)
        
        In the course of the process, the Council gives recommendations to the Member State which will then present a corrective action plan.
        The Council examines the plan and sets a deadline for implementation.
        
        In the case of an EIP, the Council can impose a fine on the MS country equal to 0.1 of its GDP if it repeatedly fails to comply.
        
        (Article 3 to12. of the Regulation)
        Macroeconomic Imbalance Procedure (MIP)
        
        Identification and
        analysis of imbalances
        
        Recommendations, monitoring
        and enforcement
        
        Screening
- - - - Titles III, IV and V
        contain rules regarding
        organization of the Eurozone
        and the rules for fiscal discipline
        (Fiscal Compact)
      - Most of the clauses of the new Treaty are designed as a complement to the existing EU regulations for the Stability and Growth Pact.
        However , Title V of the treaty specifically formalises a regulation for the existing Euro summit meetings of Eurozone members.
- - - - 2004 - CONSTITUTIONAL TREATY (Non entered into force) - Draft treaty on a constitution for the EU
      - 1992 - MAASTRICHT TREATY - Foundation of the European Union, single currency, structure of the three pillars
      - 2007 - TREATY OF LISBON (in force since 1 Dec 2009) - Reform treaty with institutional innovations
      - 1986 - SINGLE EUROPEAN ACT - completion of Single Market
      - 1957 - EURATOM TREATY - Civilian use of nuclear power
      - 1957 - EEC TREATY - Creation of European Economic Community + Single Market on 4 freedoms
      - 1951 - ECSC TREATY - Common Market for Coal and Steel
      - 1997 - AMSTERDAM TREATY - Extension of the Community's competencies (qualified majority voting, co-decision of parliament)
      - 2001 - NICE TREATY - Institutional reform of the EU in view of the enlargment to 25 members
- - - - .
        
        Participation in law making, decisions on EU finances, supervision of the Commission
        
        Election and approval of members of the Commission and the Commission president
        
        705 deputies
        
        Appointed through direct elections every five years in each EU state. The EP is the only EU institution.
    - - Council of Ministers (Council of the EU)
        
        Jointly with the EP is responsible of EU legislation
        and EU budget
        
        Coordinates economic and social policy
        
        Sole decision-making body with regard to the Commmon Foreign and Security Policy and trade and social policies
        
        President: Each EU country holds the presidency on a 6-month rotating basis
        
        Depending on the issue under discussion the Council takes its decision by:
        
        simple majority (14 member states vote in favour)
        
        qualified majority (55% of member states, representing at least 65% of the EU population, vote in favour)
        
        unanimous vote (all votes in favor)
- - - - 2009
        Greece's accounting unravels
        
        2010
        The crisis spreads,
        Austerity measures are adopted
        Greece and Ireland are bailed out
        
        2011
        Crisis deepens
        A permanent rescue
        fund is planned
        
        2012
        Containing the crisis
        Countries and banks struggle
        to get balance sheets
        under control
- - - - Problem:
        both of these measures were financed
        mainly by national government debt, resulting
        in a big increase across the board (2008-9)
        
        Problem #2
        European banks own a lot of sovereign debt
        solvency of banks is questioned,
        sovereign debtors are negatively reinforcing
        the trend, investors start to demand higher interest
        rates from countries with higher debt levels (2010).
        (doom loop )
- - - - Movements toward
        an Integrated Financial Network
        (Towards a Banking Union)
        
        EU members understood
        that monetary policy alone
        cannot be a long term solution
        and that Economic and Monetary Union (EMU) needs to be completed
    - - New legislation on:
        capital requirements,
        deposits, credit ratings agencies,
        alternative investment funds
      - New regulatory bodies:
        
        European Systemic Risk Board
        (macroprudential supervision)
        European Supervisory Authorities:
        
        EBA (European Baking authority) ,
        
        EIOPA (European Insurance and Occupational Pension Authority),
        
        ESMA (European Securities and Markets Authority)
    - - The stability and Growth Pack
        is reinforced
        
        The application of Excessive deficit procedure becomes more automatic
        
        Deviations from medium
        term objectives MTO are
        subject to heavier sanctions
      - The revision of EMU rules
        for budgetary discipline
        
        Starts with the
        Six Pack
        
        Develops into the
        Intergovernmental Treaty
        on Stability, Coord. and Gov.
        of EMU
        
        The "Fiscal Compact"
        
        Is part of the intergovernmental
        Treaty on Stability, Coord. and Gov.
        of EMU. That will become effective
        in January 2013.
        
        Introduces new elements
        to the ones already added by
        the Six pack:
        
        the rule of a balanced budget to be introduced into domestic law
        
        obligation to establish independent national structures to monitor compliance with fiscal rules
        
        the ex-ante coordination of programs for the issuance of public debt
        
        the development of budgetary and economic partnership programmes to ensure the correction of excessive deficits or debt
        
        Is complemented by
        the Two Pack
    - - European Financial Stability Facilty (EFSF)
        
        temporary financial assistance to eurozone countries that enter into an adjustment programmes (until 30 June 2013). Funded with MS resources
      - European FInancial Stabilisation Mechanism (EFSM)
        
        Essentially reproduces for EU27 the mechanics of the existing Balance of Payments Regulation for non-euro area Member States. Funded with EU resources.
      - European Stability Mechanism
        (ESM)
        Inaugurated on 8 October 2012. Established with an intergovernmental Treaty, replaces the EFSF
        
        The TSCG and the ESM together form a dual framework aimed at ensuring the fiscal and financial stability of the eurozone. The TSCG promotes long-term fiscal discipline and governance, while the ESM offers immediate financial assistance to address crises, with the conditionality that reinforces adherence to the TSCG's fiscal rules.
- - - - Both rescue funds were given a temporary status
        and it was decided they would expire in July 2013.
        It was considered that no permanent instrument of this kind could be created without a change to the Treaty.
        
        In October 2010, to not recurr for a referendum on the matter, the EU Council agreed that they would go for an amendment to the Treaty. Opening the road to establish a stability mechanism and ultimately to the ESM.
        
        25 March 2011 the EU Council confirms the ESM.
        Built on the EFSF framework.
- - - - Legal nature
      - Scope (Eurozone or 28)
      - Decision making
      - Lending capacity
      - Collaterals
- - - - Board of Governors
        (one per Member)
        Chaired by the President
        of the Eurogroup.
        
        appoints
        
        Managing Director for 5 years that
        manages the Board of Directors.
        Each governor appoints
        one Director.
- - - - Inflation: No more than 1.5 percentage points higher than the average of the three best performing member states of the EU.
      - Long-term nominal interest rate: The nominal long-term interest rate must not be more than 2 percentage points higher than in the three lowest inflation member states.
      - .
        
        Budget deficit: The budget deficit should not exceed 3% of gross domestic product (GDP).
        
        Public debt: The ratio of the public debt should not exceed 60% of GDP or should be making reductions in that direction.
        
        Exchange rate: Applicant countries should have joined the exchange-rate mechanism (ERM II) under the European Monetary System (EMS) for two consecutive years and should not have devalued its currency during the period.
        
        .
  - - - Builds on the Maastricht treaty convergence criteria and
        lays out the rules for budgetary and fiscal discipline of the MS
      - The focus of the SGP is to maintain the fiscal aspects of the converge criteria, namely the 3% deficit ratio and 60% of GDP public debt ratio.
      - consists of 3 elements
        
        A preventative arm (procedures
        to avoid governments excessive deficits)
        
        annual stability or convergence programmes,
        that show how they intend to spend their budget,
        EU Commission assesses these programmes
        giving an early warning and policy recommendations where necessarytand the Council of the EU gives its opinion on them
        
        A corrective arm (procedures
        to be applied when a MS breaches the
        deficit limit and it includes sanctions)
        
        governs the excessive deficit procedure (EDP)
        
        If it is decided that the deficit is excessive in regard to
        the Treaty, the Council issues recommendations to the MS
        with a time frame to correct the excessive deficit
        
        failure to comply may result in monetary sanctions to the MS
        
        A definitition of what constitutes an
        excessive deficit
        
        a deficit of 3% of GDP is considered
        excessive
        
        a deficit can be considered
        exceptional, usually for
        events outside the control of MS
- - - - With the launching of Next Generation EU and the submission of the National Recovery and Resilience Plans, the European Semester incorporated this new form of interaction between EU and member states.

When and why the project of a single currency was launched?

What are the Maastricht convergence criteria and why are they important?

Can you please describe the origin and the evolution of the Stability and Growth Pact?

Why are budgetary rules important in the context of monetary union?

Tell me about the mission, the institutional set up and the operational tools of the European Central Bank.

According to the Treaty, do EU member states have an obligation to join the single currency?

How is economic policy coordination organized in Economic and Monetary Union?

What is the European Stability Mechanism and why was it introduced?

How was the EU involved in the financial crisis of 2007-2008 and how did the financial crisis become a debt sovereign crisis?

What are the key institutions of the European Union and what is their role in the decision making process?

Can you tell me the most important  measures that the EU introduced to respond the sovereign debt crisis?

What are the main objectives that the EU has defined to fight climate change?

How would you describe the UN Sustainable Development Agenda and what is the role of the EU in that context?

How has the European Union reacted to the economic impact of the pandemic?

What are the main novelties of the Programme Next Generation EU?

What is the Macroeconomic Imbalance Procedure?

What is the Capital Market Union and what are the main problems it is due to address?

According to the Presidents’ reports released in 2012 and 2015 what is still needed to complete the Economic and Monetary Union?

Why some Member States have not adopted the Euro?

What are the most important initiatives of the European Union to fight climate change?

What are the most important reforms introduced in the financial sector in response to the financial crisis?

How did the EU respond to the energy crisis?

Can you describe the key objectives and instruments of EU competition policy?