The decision to incorporate into the EU treaties the so-called “fiscal compact” will be debated with Commission Vice-president Valdis Dombrovskis on Wednesday at around 16.00.

The Fiscal Compact, which would introduce a formal requirement to have a balanced national budget, is part of the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union (TSCG) that was agreed and signed by 25 EU Member States (the Czech Republic, Croatia and the UK did not sign it) in March 2012 and became applicable at national level in 2013. The aim of this inter-governmental agreement is to enhance the budget discipline of euro area governments, following the sovereign debt crisis that started in 2010.

 

President Juncker announced in his speech on the State of the Union on 3 September 2017 that the Commission would soon make a proposal to integrate the substance of the TSCG into EU law. As long as the TSCG remains an inter-governmental agreement, the European Parliament cannot exercise its right to democratic oversight on the implementation of the agreement.

 

Legislative train: where we are in the procedure

 

Procedure:  Council and Commission statements (without resolution)

Debate:  Wednesday, 4 October