Compliance with the EU Requirements for Budgetary Discipline
In accordance with section 51 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
The Stability Council monitors compliance by the federal government with the European fiscal rules of the European Stability and Growth Pact, which was reformed on April 30, 2024.
Pursuant to section 7(2) of the Stability Council Act, the Stability Council reviews compliance with the net expenditure path set out in the medium-term fiscal structural plan twice a year. This is done on the basis of a projection of the general government financing balance, general government debt, and the development of general government net expenditure.
The Stability Council is supported in this task by an independent advisory board.
In addition, section 7 (1) of the Stability Council Act stipulates that the Stability Council shall issue an opinion on the net expenditure path to be set out in the medium-term fiscal structural plan before the Federal Government submits the plan.
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.