The fundamental problem of the EU economic governance is that it is primarily geared towards avoiding excessive budget deficits. The evaluation that is now underway should be used to accomplish a reform that enables an active, balanced, well-coordinated and democratic economic governance. Hence, this position paper outlines concrete reform proposals.
From the viewpoint of AK, economic governance should focus on the sustainable development of prosperity and wellbeing. The overarching goals must be made more concrete and actually relevant as a steering mechanism. Rules that prioritise compliance with a certain deficit value are counterproductive and should be replaced by an indicative benchmark for structural revenue and expenditure net of investments. Moreover, parliaments should be given a greater role.