Closer coordination of economic policies in Europe is essential to ensure the smooth functioning of the Economic and Monetary Union’ (EMU). Thus the Rapporteur welcomes the Five Presidents’ Report as an important step to make the EMU more resilient to economic shocks. However he also stresses the need for greater convergence between and especially within Member States by calling for structural reforms to be put in place. At the same time the Rapporteur emphasises that social, economic and territorial disparities can only be reduced through a concept that is based on the 2020 strategy, including a regional dimension and a results-oriented cohesion policy. With reference to the current economic situation in Europe the CoR opinion calls on the European Commission and Parliament to adopt a code of conduct to guarantee that local and regional authorities are involved in a structured way in the European Semester. Furthermore it stresses the importance to complete the banking union as the most effective instrument to prevent crises in the financial system as well as to minimise the negative effects of economic shocks and calls for the establishment of “economic dialogue” between the CoR and the Commission.