BRUSSELS – The 2023 European Semester cycle of coordinating economic policy has just been initiated by the Commission. The package makes use of the Autumn 2022 Economic Forecast, which indicated that following a successful first half of the year, the EU economy has now moved into a significantly more problematic period.
While the COVID-19 pandemic’s quick and well-coordinated policy responses are paying dividends, the consequences of Russia’s invasion of Ukraine present the EU with a number of intricate problems. Energy prices that are historically high, high inflation rates, supply constraints, higher debt levels, and rising borrowing costs are reducing household spending power and impacting company activity.
To address these issues, provide a sufficient and reasonable energy supply, protect economic and financial stability, and shield vulnerable individuals and businesses while ensuring the sustainability of public finances, coordinated action is required. Rapid action is also required to support future growth, create excellent jobs, and implement the green and digital transitions. By establishing priorities and offering precise and well-coordinated policy guidance for the upcoming year, economic policy coordination through the European Semester will assist Member States in achieving these goals.
Commission’s Annual Sustainable Growth Survey
The Annual Sustainable Growth Survey for the coming year outlines a bold plan by the Commission to further improve coordinated EU policy responses to lessen the short-term negative effects of energy shocks. In the medium term, it is becoming essential to preserve flexibility to meet new challenges while supporting sustainable and equitable growth and continuing to increase social and economic resilience. The UN Sustainable Development Goals, which are a key component of the European Semester, are in alignment with the strategy noted the Commission.
