Enhancing EMU’s Fiscal Arm: Towards Stronger Regulatory Surveillance

  • Pierre Schlosser


During the crisis, the central control over national fiscal policies has expanded along the lines of the two earlier critical junctures in fiscal surveillance: the Maastricht Treaty and the Stability and Growth Pact. This chapter retraces the process leading to the adoption of this new fiscal surveillance regime and explains the chief policy changes that led to a shift in the vertical power balance between the centre and Member States. By analysing in depth the negotiations of the 6 Pack, of the Fiscal Compact and of the 2 Pack, the chapter uncovers the preferences and strategies of key actors involved across these cases and documents how the reforms resulted in new implementation powers being delegated to the European Commission.


  1. Alcidi, C., & Gros, D. (2014, November 5). The Case of the Disappearing Fiscal Compact. CEPS Commentary.Google Scholar
  2. Barroso, J. M. D. (2012). European Governance and the Community Method, Speech, In Conference on the Community Method, 28 February 2012, Brussels.Google Scholar
  3. Bressanelli, E., & Chelotti, N. (2016). The Shadow of the European Council. Understanding Legislation on Economic Governance. Journal of European Integration, 38(5), 511–525.CrossRefGoogle Scholar
  4. Chang, M. (2013). Fiscal Policy Coordination and the Future of the Community Method. Journal of European Integration, 35(3), 255–269.CrossRefGoogle Scholar
  5. De La Parra, S. (2013). The Two-Pack on Economic Governance: An Analysis (Background Analysis). European Trade Union Institute.Google Scholar
  6. Dehousse, R. (2012, February). The Fiscal Compact: Legal Uncertainty and Political Ambiguity. Notre Europe Policy Brief, N#33.Google Scholar
  7. Draghi, M. (2011, December 1). Introductory Statement by Mario Draghi, President of the ECB at Hearing before the Plenary of the European Parliament on the Occasion of the Adoption of the Resolution on the ECB’s 2010 Annual Report.Google Scholar
  8. European Commission. (2010a, May 12). Reinforcing Economic Policy Coordination. Commission Communication, COM(2010) 250 Final.Google Scholar
  9. European Commission. (2010b, June 30). Enhancing Economic Policy Coordination for Stability, Growth and Jobs and Tools for Stronger EU Economic Governance. Commission Communication, COM(2010) 367/2 final.Google Scholar
  10. European Commission. (2010c, September 29). EU Economic Governance: The Commission Delivers a Comprehensive Package of Legislative Measures. Commission Press Release.Google Scholar
  11. European Commission. (2011a, November 23). Proposal for a Regulation of The European Parliament and of the Council on Common Provisions for Monitoring and Assessing Draft Budgetary Plans and Ensuring the Correction of Excessive Deficit of the Member States in the Euro Area.Google Scholar
  12. European Commission. (2011b, November 23). New Action for Growth, Governance and Stability. Commission Press Release.Google Scholar
  13. European Commission. (2011c, December 12). EU Economic Governance “Six Pack” Enters into Force. Commission Press Release.Google Scholar
  14. European Commission. (2013, May). The Two-Pack on Economic Governance: Establishing an EU Framework for Dealing with Threats to Financial Stability in Euro Area Member States. Occasional Papers, DG ECFIN.Google Scholar
  15. European Commission. (2014). DG ECFIN Website: (visited on 28 September 2014).
  16. European Council. (2010, March 26–27). European Council Conclusions.Google Scholar
  17. European Council. (2011, December 9). Statement by the Euro Area Heads State or Government.Google Scholar
  18. European Voice. (2011, December 14). MEPs Demand Role in Drafting Fiscal Compact.Google Scholar
  19. Fatas, A., & Mihov, I. (2003). The Case for Restricting Fiscal Policy Discretion. Quarterly Journal of Economics, 118(4), 1419–1447.CrossRefGoogle Scholar
  20. Fernandes, S. (2014, October 13). National Budgets and European Surveillance: Shedding Light on the Debate, Notre Europe Policy Paper n°118.Google Scholar
  21. Heipertz, M., & Verdun, A. (2010). Ruling Europe: The Politics of the Stability and Growth Pact. Cambridge: Cambridge University Press.CrossRefGoogle Scholar
  22. Heritier, A., Moury, C., Schoeller, M. G., Meissner, K. L., & Mota, I. (2015, October). The European Parliament as a Driving Force of Constitutionalisation. Brussels: European Parliament.Google Scholar
  23. Hinarejos, A. (2014). Fiscal Federalism in the European Union: Evolution and Future Choices for EMU (Legal Studies Research Paper Series). University of Cambridge.Google Scholar
  24. Hodson, D. (2011). Governing the Euro Area in Good Times and Bad. New York: Oxford University Press.Google Scholar
  25. Laffan, B., & Schlosser, P. (2016). Public Finances in Europe: Fortifying EU Economic Governance in the Shadow of the Crisis. Journal of European Integration, 38(3), Special Issue EU Policies in Times of Crisis, 237–249.Google Scholar
  26. Mabbett, D., & Schelkle, W. (2009). The Politics of Conflict Management in EU Regulation. West European Politics, 32(4), 699–718.CrossRefGoogle Scholar
  27. Majone, G. (1994). The Rise of the Regulatory State in Europe. West European Politics, 17(3), 77–101.CrossRefGoogle Scholar
  28. O’Keefe, M., Salines, M., & Wieczorek, M. (2016). The European Parliament’s Strategy in EU Economic and Financial Reform. Journal of European Public Policy, 23(2), 217–235.CrossRefGoogle Scholar
  29. Pierson, P. (2000). Increasing Returns, Path Dependence, and the Study of Politics. American Political Science Review, 94(02), 251–267.CrossRefGoogle Scholar
  30. Schelkle, W. (2009). The Contentious Creation of the Regulatory State in Fiscal Surveillance. West European Politics, 32(4), 829–846.CrossRefGoogle Scholar
  31. Schimmelfennig, F. (2014). European Integration in the Euro Crisis: The Limits of Postfunctionalism. Journal of European Integration, 36(3), 321–337.CrossRefGoogle Scholar
  32. Trichet, J-C. (2009). Interview by Jean-Claude Trichet, President of the European Central Bank, with Het Financieele Dagblad, The Netherlands, Conducted by Mssrs Cor de Horde and Klaas Broekhuizen on 16 November 2009 and Published on 25 November 2009.Google Scholar
  33. Trichet, J-C. (2010, September 27). Hearing at the European Parliament’s ECON Committee.Google Scholar
  34. Trichet, J-C. (2018, February 16). Lecture, “Leaders Beyond the State”, European University Institute.Google Scholar
  35. TSCG. (2012). Treaty on Stability, Coordination and Governance in the Economic and Monetary Union (March 1–2, 2012).
  36. Van Rompuy. (2010, October 21). Van Rompuy Task Force Report. Strengthening Economic Governance in the EU: Report of the Task Force to the European Council.Google Scholar
  37. Weidmann, J. (2011, November 22). Zur Verantwortung Deutschlands als Stabilitätsanker in der Europäischen Währungsunion. Speech in Berlin.Google Scholar
  38. Wyplosz, C. (2012, July). The Role of the ECB in Fiscal Adjustment Programmes. In The Role of the ECB in Financial Assistance Programmes. Study for the ECON Committee, Monetary Dialogue.Google Scholar

Copyright information

© The Author(s) 2019

Authors and Affiliations

  • Pierre Schlosser
    • 1
  1. 1.European University InstituteFlorenceItaly

Personalised recommendations