Article 120 [Conduction of Economic Policies]

Article 120 TFEU provides a principle-oriented framework for the coordination of the MS’ economic policies in accordance with the procedure regulated in Article 121 TFEU. In its turn, Article 120 TFEU builds on Article 119 TFEU, which covers “the adoption of an economic policy […] based on the close coordination of the Member States’ economic policies” by the Union and the MS for the purposes set out in Article 3 TEU. Due to different traditions and historical experiences, the national concepts, measures and aims tend to diverge with regard to economic policy. However, MS shall regard their economic policies as a matter of common European interest (Article 121.1 TFEU). The process of sustaining monetary union is only conceivable if a high degree of economic convergence is attained. The provision systematically builds a bridge between the principles set out for the EMU (Article 119 TFEU) and their concrete application in the economic policies of the Union and the MS (Articles 121 to 126 TFEU).