THE EU CIRCULAR ECONOMY PACKAGE: THE GOVERNANCE? Francesco La Camera Director General - Department for Sustainable Development, International and European Affairs Ministry for the Environment, Land and Sea ITALY

10 Planet Ecosystems Bounderies to be kept under control: GLOBAL CHALLENGES … 10 Planet Ecosystems Bounderies to be kept under control: 1. Climate change 2. Biodiversity loss 3. Nitrogen cycle 4. Phosphorus cycle 5. Stratospheric ozone depletion 6. Ocean acidification 7. Global freshwater use 8. Land system change 9. Atmospheric aerosol loading 10.Chemical pollution Source: Rockstrom et al. (2009)

…and OPPORTUNITIES

THE GOVERNANCE

The European Semester Preparatory phase: analysis of the situation and follow-up on the previous year November and December Commission issues an annual growth survey and alert mechanism report for the upcoming year. The annual growth survey presents the Commission's view of EU policy priorities for the coming year. The member states are invited to take them into account when drawing up their economic policies for the coming year. The alert mechanism report reviews macroeconomic developments in individual EU member states. Based on the alert mechanism report, the Commission may decide to conduct an in-depth review of the situation in the countries in cases where the risk of potential macroeconomic imbalances is deemed high. Such reviews help to identify whether potential macro-economic imbalances exist, and if they do exist, their exact nature and scope. They also enable the Commission to submit policy recommendations to member states.

The European Semester 1st phase: policy guidance at the EU level January and February The Council of the EU debates the annual growth survey, sets out overall policy guidelines and adopts conclusions. March The Commission publishes country reports for all member states participating in the European Semester. The country reports include in-depth reviews of macroeconomic imbalances for those member states where the risk of such imbalances was estimated to be high. Based on these reviews, the Commission may draft recommendations to the member states to correct imbalances that are identified. The European Council provides policy orientations, based on the annual growth survey and the Council of the EU analysis and conclusions.  The member states are invited to take into account these orientations and the findings of the country reports when preparing their national stability or convergence programmes and national reform programmes. The programmes outline member states' budgetary policies and policies for promoting growth and competitiveness.

The European Semester 2nd phase: country-specific objectives, policies and plans April The member states submit their policy plans: stability and convergence programmes outlining the member states' medium-term budgetary strategy and national reform programmes outlining member states' structural reform plans, focused on promoting growth and employment The member states are expected to submit these programmes by 15 April, and by the end of April at the latest. May The European Commission evaluates national policy plans and presents draft country-specific recommendations. June The Council of the EU discusses the proposed country-specific recommendations and agrees on their final version. The European Council then endorses the final recommendations. July The Council of the EU adopts the country-specific recommendations, and the member states are invited to implement them

Circular economy and resource efficiency 3rd phase: implementation July - end of the year During the remaining 6 months of the year, sometimes called 'the national semester', the member states take into account the recommendations when drawing up national budgets for the following year. Euro area member states must submit their draft budgetary plans to the Commission and to the Eurogroup by mid-October. The member states adopt their national budgets at the end of the year. Beginning of the next cycle The cycle starts again towards the end of the year, when the Commission gives an overview of the economic situation in its annual growth survey for the coming year. The Commission begins looking into the progress achieved by individual countries in implementing the recommendations.

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