Economic governance - Second package (Conclusions of 3198th Council meeting - Economic and Financial Affairs - Brussels, 13 November 2012)

The Council adjusted its position in negotiations with the European Parliament on two draft regulations aimed at further improving economic governance in the euro area.

The objective is to facilitate rapid agreement with the Parliament, so as to enable the regulations to be adopted in first reading before the end of the year, in line with the October European Council's conclusions.

This second "two-pack" of proposals includes:

* regulation for enhanced monitoring and assessment of draft budgetary plans of euro area member states, especially those

* a regulation on enhanced surveillance of euro area member states that are experiencing severe subject to an excessive deficit procedure; financial disturbance or request financial assistance. 

The proposals were presented by the Commission in November 2011, following adoption of a first, so-called "six-pack" of economic governance measures (*)

The Council agreed a general approach on the proposals in February. The Parliament established its negotiating position on 4 July, introducing significant changes to the texts. Negotiations between Council and Parliament started on 11 July, and seven trilogues have been held since. Progress has been achieved on the regulation on enhanced surveillance, while negotiations on the regulation concerning assessment of draft budgets have so far proved more difficult.

Based on article 136 of the Treaty on the Functioning of the European Union, the regulations require a qualified majority of the 17 member states of the eurozone for adoption by the Council, in agreement with the Parliament.

(*) For details, see press release 16446/11