The first round of Medium-term fiscal-structural plans

Some important lessons can be drawn from this first round of MTPs. Firstly, the engagement of stakeholders, including IFIs and national governments, varied significantly across Member States, with significant scope for improvement. 

IFIs’ involvement in the endorsement/assessment of the next plans in all Member States would contribute to the success of the EU framework. Most IFIs contributed to MTP assessment, often without a formal request to do so, which enhanced both transparency and public awareness of the plans' commitments. Due to their expertise in macroeconomic and fiscal matters, IFIs were well-positioned to explain deviations from the Commission's reference path and evaluate country-specific macro-financial assumptions underlying the plans.

To improve the process, IFIs emphasized the need for more comprehensive analysis, greater stakeholder involvement, and sufficient information both at the national and EU level to assess the fiscal trajectory. They also called for a more transparent exchange of information at the EU level and a more detailed quantification of budgetary measures in the MTPs.

This position paper draws on a survey conducted amongst EU IFIs to make an original assessment of national MTP procedures and the involvement of IFIs therein, before making some recommendations to improve these procedures that now serve as the cornerstone of the EU's economic governance framework.