What changed between the plenary report and the adopted text

The European Parliament,

– having regard to the Treaty on the Functioning of the European Union (TFEU), in particular Articles 121, 126 and 136 thereof,

– having regard to Protocol No 1 to the Treaty on European Union (TEU) and the TFEU on the role of national parliaments in the European Union,

– having regard to Protocol No 2 to the TEU and the TFEU on the application of the principles of subsidiarity and proportionality,

– having regard to Protocol No 12 to the TEU and the TFEU on the excessive debt procedure,

– having regard to the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union,

– having regard to Regulation (EU) 2024/1263 of the European Parliament and of the Council of 29 April 2024 on the effective coordination of economic policies and on multilateral budgetary surveillance and repealing Council Regulation (EC) No 1466/97,

– having regard to Council Regulation (EU) 2024/1264 of 29 April 2024 amending Regulation (EC) No 1467/97 on speeding up and clarifying the implementation of the excessive deficit procedure,

– having regard to Council Directive (EU) 2024/1265 of 29 April 2024 amending Directive 2011/85/EU on requirements for budgetary frameworks of the Member States,

– having regard to Regulation (EU) No 1173/2011 of the European Parliament and of the Council of 16 November 2011 on the effective enforcement of budgetary surveillance in the euro area,

– having regard to Regulation (EU) No 1174/2011 of the European Parliament and of the Council of 16 November 2011 on enforcement measures to correct excessive macroeconomic imbalances in the euro area,

– having regard to Regulation (EU) No 1176/2011 of the European Parliament and of the Council of 16 November 2011 on the prevention and correction of macroeconomic imbalances,

– having regard to Regulation (EU) No 472/2013 of the European Parliament and of the Council of 21 May 2013 on the strengthening of economic and budgetary surveillance of Member States in the euro area experiencing or threatened with serious difficulties with respect to their financial stability,

– having regard to Regulation (EU) No 473/2013 of the European Parliament and of the Council of 21 May 2013 on common provisions for monitoring and assessing draft budgetary plans and ensuring the correction of excessive deficit of the Member States in the euro area,

– having regard to Regulation (EU, Euratom) 2020/2092 of the European Parliament and of the Council of 16 December 2020 on a general regime of conditionality for the protection of the Union budget (the Rule of Law Conditionality Regulation),

– having regard to Regulation (EU) 2021/241 of the European Parliament and of the Council of 12 February 2021 establishing the Recovery and Resilience Facility (the RRF Regulation),

– having regard to the Commission’s Spring 2024 Economic Forecast of 15 May 2024,

– having regard to the Commission’s Autumn 2024 Economic Forecast of 15 November 2024,

– having regard to the Commission’s Debt Sustainability Monitor 2023 of 22 March 2024,

– having regard to the Commission communication of 17 December 2024 entitled ‘Alert Mechanism Report 2025’ (COM(2024)0702) and to the Commission recommendation of 17 December 2024 for a Council recommendation on the economic policy of the euro area (COM(2024)0704),

– having regard to the Commission proposal of 17 December 2024 for a joint employment report from the Commission and the Council (COM(2024)0701),

– having regard to the Commission communication of 8 March 2023 entitled ‘Fiscal policy guidance for 2024’ (COM(2023)0141),

– having regard to the Commission report of 19 June 2024 prepared in accordance with Article 126(3) of the Treaty on the Functioning of the European Union (COM(2024)0598),

– having regard to the Council Recommendation of 12 April 2024 on the economic policy of the euro area,

– having regard to the European Fiscal Board assessment of 3 July 2024 on the fiscal stance appropriate for the euro area in 2025,

– having regard to the Eurogroup statement of 15 July 2024 on the fiscal stance for the euro area in 2025,

– having regard to the European Fiscal Board’s 2024 annual report, published on 2 October 2024,

– having regard to the Commission communication of 19 June 2024 entitled ‘2024 European Semester – Spring Package’ (COM(2024)0600),

– having regard to the Commission communication of 17 December 2024 entitled ‘2025 European Semester – Autumn package’ (COM(2024)0700),

– having regard to the Eighth Environment Action Programme to 2030,

– having regard to the Interinstitutional Proclamation of 17 November 2017 on the European Pillar of Social Rights and to the Commission communication of 4 March 2021 entitled ‘The European Pillar of Social Rights Action Plan’ (COM(2021)0102),

– having regard to its resolution of 21 January 2021 on access to decent and affordable housing for all,

– having regard to the document by Ursula von der Leyen, candidate for President of the European Commission, of 18 July 2024 entitled ‘Europe’s choice – Political guidelines for the next European Commission 2024-2029’, and to the statement made by Valdis Dombrovskis, Commissioner for Economy and Productivity, Implementation and Simplification, at his confirmation hearing on 7 November 2024,

– having regard to International Monetary Fund working paper 24/181 of August 2024 entitled ‘Taming Public Debt in Europe: Outlook, Challenges, and Policy Response’,

– having regard to the International Monetary Fund’s Fiscal Monitor entitled ‘Putting a Lid on Public Debt’ of October 2024,

– having regard to Special Report 13/2024 of the European Court of Auditors entitled ‘Absorption of funds from the Recovery and Resilience Facility – Progressing with delays and risks remain regarding the completion of measures and therefore the achievement of RRF objectives’,

– having regard to the in-depth analysis entitled ‘The new economic governance framework: implications for monetary policy’, published by its Directorate-General for Internal Policies on 20 November 2024,

– having regard to the in-depth analysis entitled ‘Economic Dialogue with the European Commission on EU Fiscal Surveillance’, published by its Directorate-General for Internal Policies on 1 December 2024,

– having regard to Mario Draghi’s report of 9 September 2024 entitled ‘The future of European Competitiveness’ (the Draghi report),

– having regard to Rule 55 of its Rules of Procedure,

– having regard to the report of the Committee on Economic and Monetary Affairs (A10-0022/2025),

A. whereas the European Semester plays an essential role in coordinating economic and budgetary policies in the Member States, and thus preserves the macroeconomic stability of the economic and monetary union;

B. whereas the European Semester aims to promote sustainable, inclusive and competitive growth, employment, macroeconomic stability and sound public finances throughout the entire EU, with a view to ensuring the sustained upward convergence of the economic, social and environmental performance of the Member States;

C. whereas the 2024 European Semester marked the first implementation cycle of the new economic governance framework, which came into force on 30 April 2024, guiding the EU and its Member States through a transitional phase;

D. whereas the 2024 Council Recommendation on the economic policy of the euro area calls on the Member States to take action, both individually and collectively, to strengthen competitiveness, boost economic and social resilience, preserve macro-financial stability and sustain a high level of public investment to support the green and digital transitions; whereas fiscal stability is a basis for both sustainable high social standards in the EU and the competitiveness of the EU;

E. whereas the main objectives of the new economic governance framework are to strengthen debt sustainability and sustainable and inclusive growth in all Member States, as well as enabling all Member States to undertake the necessary reforms and investments in the EU’s common priorities, which include (i) a fair green and digital transition, (ii) social and economic resilience including the European pillar of social rights, (iii) energy security, and (iv) the build-up of defence capabilities; whereas disparities in fiscal capacity among Member States hinder equitable investment in strategic priorities and weaken cohesion within the single market;

F. whereas reference values of up to 3 % of government deficit to GDP and 60 % of public debt to GDP are defined by the TFEU; whereas the EU’s headline deficit and government debt-to-GDP ratio remain above the reference values; whereas both the headline deficit and government debt-to-GDP ratio vary across the EU, with significantly divergent situations in different Member States;

G. whereas excessive deficit procedures were opened, or kept open, for eight Member States in 2024; whereas some Member States were not subject to an excessive deficit procedure, despite having a deficit above 3 % of GDP in 2023, as decided by the Council and the Commission after a balanced assessment of all the relevant factors;

H. whereas no procedure concerning macroeconomic imbalances has been opened by the Council since the establishment of this procedure in 2011; whereas, in accordance with its Alert Mechanism Report, the Commission will conduct an in-depth review of 10 countries identified as experiencing macroeconomic imbalances or excessive imbalances in 2025;

I. whereas the success of a framework relies heavily on its proper, transparent and effective implementation from the outset, while taking into account the Member States’ starting points and the individual challenges they face;

J. whereas the timely submission of the national medium-term fiscal-structural and draft budgetary plans is a precondition for the effective implementation and credibility of the new rules; whereas the first national fiscal and budgetary plans have already been assessed by the Council; whereas the equal treatment of the Member States and compliance with the requirements outlined in Regulation (EU) 2024/1263 as regards the fiscal plans are necessary for the effective implementation of the framework;

K. whereas the economic outlook for the EU remains highly uncertain and there is a growing risk of future events or situations that will negatively affect the economy; whereas Russia’s aggression in Ukraine and the conflicts in the Middle East are aggravating geopolitical risks and highlighting Europe’s energy vulnerability; whereas a rise in protectionist measures by trading partners may affect world trade, with negative repercussions for the EU economy; whereas current geopolitical tensions have demonstrated the need for the EU to further strengthen its open strategic autonomy and remain competitive in the global market, while ensuring that no one is left behind;