Introduction section Section III - The document cycle and the European semester

Section III - The document cycle and the European semester

Following the new rules adopted by the European Union for the coordination of the economic and budgetary policies of member states, especially with the start of the new Europe 2020 development strategy and with the introduction of the so-called European semester, Law No. 39 of April 7, 2011 amended Law No. 196 of 31 December 2009, by reviewing the structure and deadlines for submitting planning documents: the beginning of the cycle has been brought forward to the first half of the year, while the public finance package (the Stability Law and the Budget Law) is drafted in the month of October. These changes aim at achieving full integration of the national planning cycle in the new European semester.

The planning cycle starts with the submittal, by April 10 each year, of the Economic and Financial Document - DEF with its separate sections containing the Update of the Stability Programme - PS and the National Reform Programme - PNR. The Document is sent to Parliament by the Government. As the deadline for submitting the Economic and Financial Document, superseding the Public Finance Decision - DFP, was brought forward, the Report on the Economy and Public Finance - REF was repealed. Once the Economic and Financial Document has been considered by Parliament (adoption of resolutions), the Stability Programme and the National Reform Programme are sent to the European institutions by April 30. By September 20, the Government sends to Parliament the Update Note of the DEF which contains an update of macroeconomic and public finance forecasts as well as planning targets integrating any comments by the EU Council. Along with the schedule, also the tools and content of planning documents envisaged by the accounting and public finance law have been changed. Parliament now has greater influence in designing budgetary policies and sharing the policy targets among the various levels of decentralised government.

Moreover Law No. 39 envisages that the content of the General Report on the Country’s Economic Situation - RGE, to be submitted to Parliament in April as of 2012, should be reviewed. The RGE relating to 2010 is to be submitted to Parliament in September. The Committee on the reorganization of the RGE, established by the same law, fulfilled its task in the months from May to July 2011 of analysing the content of the RGE and assessing its relevance.

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