Economic Policy Coordination in the Euro Area Under the European Semester

CEPS Special Report, No. 123/December 2015

29 Pages Posted: 15 Jan 2016

See all articles by Daniel Gros

Daniel Gros

Centre for European Policy Studies, Brussels; CESifo (Center for Economic Studies and Ifo Institute)

Cinzia Alcidi

CEPS; Graduate Institute of International and Development Studies (IHEID)

Date Written: December 10, 2015

Abstract

The implementation record of the Country Specific Recommendations (CSRs) has declined over time, as financial turbulence lessened and the economic outlook started to improve. Urgency for reforms seemingly receded to leave room to request member states to move towards more accommodative stances. It is mainly the small countries that implement, at least partially, the recommendations addressed to them. Unfortunately, there is little that the EU can do to change the status quo. Yet, the President of the Eurogroup could be held accountable for the implementation of the recommendations addressed to the euro area. The creation of National Competitiveness Boards risks making the European Semester even more complex and likely to have little impact in the countries that need them most, namely large countries and those with poor governance. To make it effective, a procedure would be needed to make national wage norms consistent at the euro-area level, which may be a very difficult objective to achieve.

Note: This study was originally requested by the European Parliament’s Economic and Monetary Affairs Committee and was published on the European Parliament’s website. It is republished here by CEPS with the kind permission of the European Parliament.

Keywords: Country Specific Recommendations, CSRs, EU, Eurogroup, euro area

Suggested Citation

Gros, Daniel and Alcidi, Cinzia, Economic Policy Coordination in the Euro Area Under the European Semester (December 10, 2015). CEPS Special Report, No. 123/December 2015, Available at SSRN: https://ssrn.com/abstract=2715501

Daniel Gros (Contact Author)

Centre for European Policy Studies, Brussels ( email )

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CESifo (Center for Economic Studies and Ifo Institute)

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Germany

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Cinzia Alcidi

CEPS ( email )

1 Place du Congres
Brussels, 1000
Belgium

Graduate Institute of International and Development Studies (IHEID) ( email )

132, Rue de Lausanne
Geneva, 1211
Switzerland

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