- Latest update of text: March 2014. Planned article update: March 2015.
The European Union (EU) is active in a wide range of policy areas, but the economic domain has traditionally played a prominent role. Starting from the rather narrow focus of introducing common policies for coal and steel, atomic energy and agriculture as well as the creation of a customs union over 50 years ago, European economic policies progressively extended their scope to cover a multitude of domains.
Single market
Since the end of 1992, the European single market has enhanced the possibilities for people, goods, services and money to move around the EU as freely as within a single country. The start of economic and monetary union (EMU) in 1999 gave economic and market integration further stimulus. The euro has become a symbol for Europe, and the number of countries that have adopted the single currency increased from an original 11 to 18 countries by 2014.
In April 2011, leading up to the twentieth anniversary of the beginning of the single market, the European Commission released a Communication titled ‘Single Market Act — twelve levers to boost growth and strengthen confidence’ (COM(2011) 206 final), aimed at improving the single market for businesses, workers and consumers. In October 2012, this was supported by a further Communication from the European Commission titled ‘Single Market Act II — Together for new growth’ (COM(2012) 573 final). The purpose of this second Communication was to build upon the first Single Market Act and it identified four drivers around which to focus key actions:
- developing fully integrated networks (such as transport and energy) in the single market;
- fostering the mobility of citizens and businesses across borders;
- supporting the digital economy across Europe to boost productivity and creativity;
- strengthening social entrepreneurship, cohesion and consumer confidence.
Europe 2020
Fostering economic and social progress has been a key objective of European policies. In March 2010, the European Commission launched the Europe 2020 strategy for smart, sustainable and inclusive growth. Its objective is to overcome the effects of the 2008 financial and economic crisis and prepare the EU’s economy for the next decade; integrated economic and employment guidelines have been revised within the context of this new strategy.
Reinforced economic agenda
Following actions to stabilise the financial system and the economy, the recent financial and economic crisis also prompted a reinforced economic agenda with closer EU surveillance, as well as agreement over a range of policy priorities and a set of targets as part of the Europe 2020 strategy. Tighter EU surveillance of economic and fiscal policies has been introduced as part of the stability and growth pact, while new tools to tackle macroeconomic imbalances and a new working method — the European semester — have also been introduced in order to promote discussions concerning economic and budgetary priorities at the same time every year. As part of this method, the European Commission publishes an ‘Annual growth survey’, setting out the broad EU economic priorities for the year to come.
In October 2011, the Council adopted an EU economic governance package of six new legislative acts which entered into force in mid-December 2011. This puts much more emphasis on debt reduction, sets minimum requirements for national budgetary frameworks and installs a new procedure to prevent and correct macroeconomic imbalances including a scoreboard of economic and financial indicators that the European Commission will monitor. These were followed in May 2013 by two Regulations designed to further enhance economic integration and convergence amongst euro area Member States:
- Regulation (EU) No 473/2013 of the European Parliament and Council concerns monitoring and assessing draft budgetary plans and relates to the excessive deficit procedure;
http://eur-lex.europa.eu/legal-content/EN/TXT/?qid=1413291056070&uri=CELEX:32013R0472
- Regulation (EU) No 472/2013 of the European Parliament and Council strengthens economic and budgetary surveillance for Member States experiencing or threatened with severe difficulties with respect to their financial stability.
These regulations create a framework based on a graduated approach, with appropriate surveillance requirements for a wide range of budgetary situations, to ensure a seamless continuity of policy monitoring.
Economic statistics
In order to support these policy developments a broad range of short-term and structural indicators are required. Eurostat data from a variety of different sources, such as national accounts, government finance, exchange rates and interest rates, consumer prices, and the balance of payments may be used to support analysis of the economic situation. These indicators are also used in the design, implementation and monitoring of the EU’s policies.
See also
All articles on economy and finance
Further Eurostat information
Main tables
- Balance of payments - International transactions(t_bop)
- Annual sector accounts (t_nasa)
- Exchange rates (t_ert)
- Government statistics (t_gov)
- Harmonized indices of consumer prices (HICP) (t_prc_hicp)
- Interest rates (t_irt)
- Annual national accounts (t_nama) and Quarterly national accounts (t_namq)
Database
- Balance of payments - International transactions (bop)
- Supply Use and Input–Output tables (naio)
- Annual sector accounts (nasa) and Quarterly sector accounts (nasq)
- Exchange rates (ert)
- Government statistics (gov)
- Harmonized indices of consumer prices (HICP) (prc_hicp)
- Interest rates (irt)
- Annual national accounts (nama) and Quarterly national accounts (namq)
- Purchasing power parities (prc_ppp)
Dedicated sections
- Balance of payments
- ESA 95 supply use and input-output tables
- European sector accounts
- Exchange rates
- Government finance statistics
- Harmonised indices of consumer prices (HICP)
- Interest rates
- National accounts (including GDP)
- Purchasing power parities (PPPs)