2013: The ‘Two-Pack’ completes budgetary surveillance for the Euro area and further improves economic governance

To strengthen the economic pillar of the Economic and Monetary Union, euro area Member States needed to go beyond the ‘Six-Pack’ legislation agreed in 2011.

The “Two Pack”, which entered into force on May 30, 2013, comprises two Regulations designed to further enhance economic integration and convergence amongst euro area Member States. The Regulations build on and complement the Six-Pack reforms to the Stability and Growth Pact (SGP), the European framework for fiscal surveillance, and the European Semester for economic policy coordination.

The first Regulation applies to all Member States in the euro area, with special rules made for those in the corrective arm of the SGP, the Excessive Deficit Procedure (EDP). The second Regulation sets out clear and simplified rules for enhanced surveillance for Member States facing severe difficulties with regard to their financial stability, for those receiving financial assistance, as well as for those exiting a financial assistance program.

Read more about EU economic governance and/or consult the short guide to the new EU fiscal governance.