Filenews 3 October 2025
The European Commission on Thursday presented proposals for targeted changes to the EU's economic governance framework, aimed at simplifying procedures, cutting red tape and enhancing the effectiveness of financial support to member states.
According to Economy Commissioner Valdis Dombrovskis, these changes will allow resources to be freed up so that governments can focus on sound fiscal management and growth. "Today's proposals reduce administrative burdens and make supervisory and financing activities more effective," he noted.
Three axes of change
The proposed amendments are based on three main axes:
- Streamlining fiscal surveillance, removing outdated provisions and simplifying reporting obligations, in line with the new Stability and Growth Pact.
- Strengthen surveillance in euro area Member States facing or at risk of experiencing economic difficulties, with more targeted interventions and improved post-programme surveillance.
- A new financing strategy for non-euro area Member States, replacing the 'follow-up' financing method with a more flexible and efficient approach, already tested in programmes such as NextGenerationEU and macro-financial support for Ukraine.
Aiming for a faster and more efficient EU
The Commission underlines that the initiative is part of the simplification agenda, presented in February 2025, and is part of its commitment to a more competitive and efficient European Union, while ensuring financial stability.
