What changed between the plenary report and the adopted text

Changed:L. whereas the implementation of the revised economic governance framework is expected to lead to a restrictive fiscal stance for the euro area, as a whole, of 0.50,5 % of GDP in 2024 and 0.250,25 % of GDP in 2025; whereas political discussion is needed to ensure appropriate public investment levels following the expiry of the Recovery and Resilience Facility (RRF) in 2026;

Changed:11. Expresses concern that, according to the Commission’s autumn 2024 economic forecast, EU GDP is expected to grow by 0.90,9 % (0.8(0,8 % in the euro area) in 2024, by 1.51,5 % (1.3(1,3 % in the euro area) in 2025 and by 1.8%1,8% (1.6%(1,6% in the euro area) in 2026; recalls that these figures reflect a gradual recovery, but also limited economic expansion compared to previous economic cycles; notes that the economic outlook for the EU remains highly uncertain, with risks more likely to negatively affect economic growth;

Changed:12. Notes that the public debt ratio is projected to increase to 83.083,0 % in the EU and 89.689,6 % in the euro area in 2025 and to 83.483,4 % in the EU and 90 % in the euro area in 2026, when the output gap will be virtually closed both in the EU and in the euro area, and that this is higher than the levels in 2024 (82.4(82,4 % for the EU and 89.189,1 % for the euro area);

Changed:14. Notes that according to the Commission’s 2024 autumn economic forecast, the general government deficit in the EU and the euro area is expected to decline to 3.13,1 % and 3 % of GDP, respectively, in 2024, and to decrease further to 3 % and 2.92,9 % of GDP in 2025 and 2.92,9 % and 2.82,8 % of GDP in 2026; stresses that 10 EU Member States are expected to post a deficit above the Treaty reference value of 3 % of GDP in 2024; points out that this number will remain stable in 2025, and that in 2026, most Member States are forecast to have weaker budgetary positions than before the pandemic (2019), with 9 of them still posting deficits of above 3 %;

Changed:16. Notes that according to the Commission’s autumn 2024 economic forecast, inflation is projected to fall from 2.62,6 % in 2024 to 2.42,4 % in 2025 and 2 % in 2026 in the EU, and from 2.42,4 % in 2024 to 2.12,1 % in 2025 and 1.91,9 % in 2026 in the euro area; recalls that although this reduction is a positive development, core inflation remains relatively high, which points to persistent inflationary pressures; notes that fiscal policy, while safeguarding fiscal sustainability, can support monetary policy in reducing inflation, and should provide sufficient space for additional investments and support long-term growth;

Changed:32. Notes the Commission’s projection that the implementation of the revised governance framework is expected to lead to a reduction of the primary structural balance for the euro area as a whole of 0.50,5 % of GDP in 2024 and 0.250,25 % of GDP in 2025; notes the Commission’s assessment that this is in line with the process of enhancing fiscal sustainability and support the ongoing disinflationary process as economic uncertainty remains high; notes that GDP growth will continue to support fiscal consolidation throughout the EU; calls for fiscal policies that restore stability while promoting innovation, industrial competitiveness and long-term economic growth; stresses the need to create additional fiscal space to tackle future challenges and potential crises while preserving a sufficient level of investment to support and foster sustainable and inclusive growth, industrialisation and prosperity for all;

Changed:38. Notes that the share of ‘fully implemented’ CSRs has dropped from 18.118,1 % (in the period 2011-2018) to 13.913,9 % (in the period 2019-2023); recalls that implementing CSRs, including with regard to the efficiency of public spending, is a key part of ensuring fiscal sustainability and addressing macroeconomic imbalances; advocates a more efficient implementation of the CSRs and the relevant reforms; calls for ways of increasing the share of ‘fully implemented’ CSRs to be explored; calls on the Commission to link the CSRs more closely to the respective country reports; calls for the impact of reforms and the progress towards reducing identified investment gaps to be evaluated; calls for greater transparency in the preparation of CSRs;