Economic and monetary union

Abstract

This chapter addresses the enforcement of EU economic policies as part of the Economic and Monetary Union (EMU). The enforcement structure diverges from other areas of EU law in two distinct ways. First, economic policies do not create rights and obligations for citizens and business, thereby excluding private enforcement. Enforcement thus fully relies on EU- Member States relations. Second, in light of the politically sensitive nature of economic policies, the Treaty drafters have excluded default enforcement mechanisms such as the infringement procedure. The authors analyse the alternatives that have been specifically designed for EMU. The Excessive Deficit Procedure was already created by the Stability and Growth Pact to ensure enforcement of fiscal policies. Its counterpart for economic performance policies is the Excessive Imbalances Procedure which has only been created in the 2010s. Strengths and weaknesses are assessed but also how the European Stability Mechanism and the Next Generation EU (with the EU’s corona recovery fund as its centerpiece) have given new impetus to the enforcement of economic policies.