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Regulation (EU) 2024/1263 of the European Parliament and of the Council of 29 April 2024 on the effective coordination of economic policies and on multilateral budgetary surveillance and repealing Council Regulation (EC) No 1466/97 CHAPTER II — EUROPEAN SEMESTER

Article 3–Article 42 provisions

The European Semester

Article 3

1.   In order to ensure closer coordination of economic policies and sustained convergence of the economic and social performance of the Member States, the Council and the Commission, with the involvement of the European Parliament in accordance with Article 27 of this Regulation, shall conduct multilateral surveillance in the context of the European Semester in accordance with the objectives and requirements set out in the TFEU. 2.   Multilateral surveillance shall rely on high quality and independent statistics, produced in accordance with the principles laid down in Regulation (EC) No 223/2009. 3.   The European Semester shall include: (a) the formulation, and the surveillance of the implementation, of the broad guidelines for the economic policies of the Member States and of the Union in accordance with Article 121(2) TFEU, of country-specific recommendations and of the recommendation on the economic policy of the euro area; (b) the formulation, and the surveillance of the implementation, of the employment guidelines that are to be taken into account by Member States in accordance with Article 148(2) TFEU, including the principles of the European Pillar of Social Rights, and of the related country-specific recommendations. The surveillance of the implementation by the Commission includes the progress in implementing the principles of the European Pillar of Social Rights and its headline targets, via the social scoreboard and a framework to identify risks to social convergence; (c) the submission, assessment and endorsement of national medium-term fiscal-structural plans of the Member States, as well as the monitoring of their implementation through the annual progress reports; (d) surveillance in order to prevent and correct macroeconomic imbalances pursuant to Regulation (EU) No 1176/2011.

Implementation of the European Semester

Article 4

1.   Where necessary, following an assessment pursuant to this Regulation of the national medium-term fiscal-structural plans, the annual progress reports and the socio-economic situation of Member States, the Council shall, on the basis of recommendations from the Commission, address recommendations to Member States making full use of the legal instruments provided for in Articles 121 and 148 TFEU and related secondary legislation. 2.   Member States shall take due account of the broad guidelines for their economic policies and of the recommendations and employment guidelines as referred to in Article 3(3), points (a) and (b), respectively, before taking key decisions in the development of their economic, social, employment, structural and budgetary policies. Progress shall be monitored by the Commission. 3.   Failure by a Member State to act upon the guidelines and recommendations referred to in paragraph 2 may result in: (a) further recommendations; (b) a Commission warning or a Council recommendation pursuant to Article 121(4) TFEU; (c) measures under this Regulation, Regulation (EC) No 1467/97 or Regulation (EU) No 1176/2011.

Source: EUR-Lex (Publications Office of the EU), © European Union, reuse permitted under Commission Decision 2011/833/EU.