Nobody could know the extent of the Coronavirus crisis when the Commission published its Country Report for Austria on 26 February 2020. The right lessons must be learned before the European Semester takes the next steps.

On 27 April 2020, the executive Vice President Valdis Dombrovskis and Paolo Gentiloni, EU Commissioner for the Economy, were answering questions of the European Parliament’s Committee on Economic and Monetary Affairs. The debates focussed on the economic consequences of the Coronavirus crisis and how these could be met. Besides measures already introduced, the Commission is currently working on a new proposal on a recovery fund and on the Multiannual Financial Framework.

Sollte die Europäische Kommission am Zeitplan zum Europäischen Semester festhalten, geht die AK davon aus, dass die Empfehlungen an Österreich fortschrittliche Lehren aus der Corona-Krise widerspiegeln. Das sollte insbesondere eine klare Abkehr von jenen Empfehlungen bedeuten, die auf einen substanziellen Rückbau jener wichtigen sozialstaatlichen Institutionen hinauslaufen, die sich nicht nur in Krisensituationen bewährt haben.

The revision of the Non-Financial Reporting Directive (2014/95/EU) has been scheduled by the European Commission for the year 2020. Since 2017 around 8,000 European companies have been obliged to submit non-financial reporting on environmental, social and labour issues, respect for human rights, and the fight against corruption and bribery. However, national and international studies show that these reporting obligations have – so far – been implemented only unsatisfactorily in practice.

Following tough negotiations on 9 April 2020, the finance ministers of the 19 States of the euro area achieved political agreement for a package of measures, which might comprise up to € 540 billion. However, details are not known yet. These and further measures will be negotiated in the coming days and weeks.

The corona crisis and the looming recession bring back bad memories of the Euro crisis management, which in particular affected Italy, Spain or Greece. Member States are struggling to find a joint solution in order to cushion the disastrous economic consequences of the current crisis. Will the European Union do better than 10 years ago?

On 20th March 2020, the Commission proposed to affect the general escape clause within the scope of the Stability and Growth Pact; three days later the Council of Finance Ministers confirmed the proposal. This means that, for the time being, the EU Member States are no longer bound to the strict EU budget criteria when dealing with the looming economic crisis.

The ambitous plans of the European Commission on the European Green Deal are not least also raising social issues. In order to create a fair path towards a climate-neutral Europe by 2050, the Commission had published a proposal on setting up a Just Transition Fund already in January. The Chamber of Labour has scrutinized the proposal within the scope of its current Position Paper on the Green Deal.

On 12th March 2020, the European Commission revealed another component of its plan to make Europe energy neutral by 2050: the circular economy action plan shall ensure that the European economy becomes more resource efficient. This does not only concern improved recycling and the reuse of raw materials, but also facilitating repairs and providing better information for consumers.

On Wednesday, March 4th, 2020, the EU Commission presented the eagerly anticipated climate law. This proposal, which had been announced by Commission President Ursula von der Leyen for the first 100 days of her term in office, is regarded as the centrepiece of the European Green Deal. However, it received a mixed reaction.