The European Fiscal Board: Questions and Answers

What is this Board and what it does?

Following the Five Presidents' Report on completing Europe's Economic and Monetary Union, the Commission decided in October 2015 to set up a European Fiscal Board as an independent advisory board on fiscal matters. The main responsibilities of EFB are

Article 24, Regulation (EU)  2024/1263

1.  provide a timely ex post evaluation of the implementation of the Union fiscal governance framework
2. advise on the prospective fiscal stance appropriate for the euro area as a whole, as well as on the appropriate national fiscal stances that are consistent with it within the rules of the Stability and Growth Pact
3. upon request of the Commission or the Council, provide advice on the implementation of the Stability and Growth Pact, including on the extension of the general escape clause in accordance with Article 25 of Regulation (EU) 2024/1263
4. cooperate closely with independent fiscal institutions as referred to in Article 8a of Directive 2011/85/EU
5. make suggestions for the future evolution of the fiscal framework.

The European Fiscal Board consists of a Chair and four Members, and is supported by a Secretariat. The Chair and Members are internationally renowned experts on fiscal policy, public finances and macroeconomics, with experience in European economic governance and the EU's fiscal rules.

Why has it been set up?

The post-2007 economic and financial crisis highlighted the importance for Member States to implement responsible fiscal policies, which reconcile the imperative of sustainable public finances with the need for economic stabilisation. This is particularly important for the euro area. The Board provides to the Commission and the Council an evaluation of the implementation of the EU fiscal rules, including the appropriateness of the actual fiscal stance at euro area and national level.

When was the Board established?

The Board was established on 21 October 2015 with the Commission Decision (EU) 2015/1937 of 21 October 2015 establishing an independent advisory European Fiscal Board. 

A new Commission Decision was adopted on 29 July 2024 with the Commission Decision (EU) 2024/2115 of 29 July 2024 establishing an independent advisory European Fiscal Board and repealing Decision (EU) 2015/1937. In general, it meets once per month or more if necessary.

How are the Members selected?

The structured and transparent selection process of the five Board Members starts with an open call for expression of interest. A selection panel, composed of high-level officials from the Commission, conducts interviews and shortlists candidates to serve as Chair and Board Members. The Commission then consults the European Parliament and the Council of Ministers and the European Parliament on the shortlisted candidates

What are the criteria for selecting the Members of the Board?

The criteria for assessing applications include:

• Proven and relevant competence and experience of the applicants demonstrating that they are respected international experts as regards macroeconomics, public finances, fiscal policy and budgetary management;
• Deep understanding of the EU fiscal rules and its role for the functioning of the EU and EMU;
• Proven and relevant competence and experience with economic policy making; preferably gained from work in policy-making institutions, policy-advising institutions or academia;
• Knowledge of the EU institutions and EU decision making processes and the role of the European Commission.
• Experience in carrying out economic analysis from a horizontal, cross-country perspective would be an asset.

To the extent possible the selection aims to strike a balance in terms of the representativeness of applicants, gender and geographical origin, taking into account the specific tasks of the European Fiscal Board and the type of expertise required. 

Is the board independent or part of the Commission?

The Members of the Board are required to act independently and neither seek, nor take instructions from, any EU or national institution, bodies or governments, including the European Commission. They are obliged to disclose any potential conflict of interest. The impartiality of the Board's advice is safeguarded by its balanced composition which presents a diversity of experiences, backgrounds and views.

The Board Members are not employees of the Commission and are committed to providing independent expertise. While practical administrative reasons make it necessary to attach the Secretariat of the Board to the Commission, for instance to access similar data, the Board has been carefully designed as a fully autonomous body.

The Board's mandate and set-up are set out transparently in the Commission Decision (EU) 2024/2115 of 29 July 2024 establishing an independent advisory European Fiscal Board and repealing Decision (EU) 2015/1937. Its mandate and independence therefore have a clear legal basis, in line with best practices for independent bodies.

Why doesn't the Board take fiscal decisions?

The Five Presidents' Report clearly states that the Board: "should advise, not implement policy. Enforcing the rules should remain the task of the European Commission."

The Commission's mandate is based in the EU Treaty, where each institution's roles in economic and monetary policymaking are clearly outlined. A 'fully independent expert body' cannot take fiscal decisions because this would infringe on the prerogatives of the various EU institutions, including accountability and decision-making procedures set out in the Treaty.

In this respect, it is important not to mix up the role of the Board set up at EU level to advise the Commission and the Council with that of the national fiscal councils set up at national level.

Are the Board's opinions public?

In line with the Commission decision establishing the Board (Art. 7), all reports and advice by the EFB are made public.

Does the Board have adequate resources?

A Memorandum of Understanding was signed between the Board and relevant Commission services. A secretariat provides the Board with technical and practical support.

What is the relationship between the Board and national fiscal councils?

All Member States are required to have national fiscal councils under the "two-pack" regulations. National fiscal councils are independent bodies, which monitor compliance with national fiscal rules in the Member States.

All EU Member States are required to have national fiscal councils under the under the council directive 2011/85. National fiscal councils are independent bodies, which monitor compliance with national fiscal rules in the Member States and assess/produce macroeconomic forecasts underpinning national budgets.

The Board does not interfere with the work of national fiscal councils, but cooperates with them, particularly in the exchange of best practices and facilitating common understanding on matters related to EU fiscal rules. Such cooperation benefits and strengthen both the Board and national fiscal councils.