Compliance with the EU Requirements for Budgetary Discipline
In accordance with section 51 (1) of the Budgetary Principles Act (Haushaltsgrundsätzegesetz), the Stability Council conducts deliberations on prevailing macroeconomic and fiscal conditions in order to facilitate budgetary and fiscal planning by the Federation, Länder and local authorities. The aim is to coordinate fiscal and budgetary planning at all levels of government, taking macroeconomic and fiscal conditions into account. It took this role over from the Financial Planning Council in 2010.
In particular, the Stability Council takes into account Germany’s obligations to the EU under the Stability and Growth Pact.
The Stability Council monitors Germany’s general government compliance with the EU’s fiscal rules under the reformed Stability and Growth Pact of 30 April 2024. In carrying out this task, the Stability Council is assisted by an independent advisory board.
Germany has yet to transpose the rules of the reformed Stability and Growth Pact into national law.
Once a year, the federal government submits a progress report in accordance with Regulation (EU) No 2024/1263, an overview of its draft budgetary plan in accordance with Regulation (EU) No 473/2013, and the ECOFIN Council’s country-specific recommendations to the relevant expert committees in the Bundestag, to the Conference of Finance Ministers (the body that represents the finance ministers of the Länder) and to the Stability Council.