Information from June Euro Summit
Eurogroup President Mário Centeno informed ministers on the outcome of the Euro Summit, which took place on 29 June.
He also briefly outlined the issues relating to the deepening of the Economic and Monetary Union on which the Eurogroup would be expected to work before the next Euro Summit meeting, scheduled to take place in December this year.
These include terms of reference for the common backstop to the single resolution fund to be provided by the European Stability Mechanism (ESM), and a term sheet for the further development of the ESM, as well as a roadmap for the beginning of political negotiations on EDIS. The Eurogroup will also discuss all other elements listed in the Eurogroup president’s letter of 25 June 2018 to President Tusk.
Presentation of the summer interim forecast
The Eurogroup discussed the economic situation and the outlook for the euro area, on the basis of a presentation by the European Commission on its summer interim forecast.
The Eurogroup regularly discusses the economic situation and economic policy challenges as part of its efforts to effectively contribute to economic growth and job creation.
Budgetary situation and prospects
The Eurogroup held a discussion on the budgetary situation in the euro area as a whole, focusing on prospects for 2019. The results of this exchange will contribute to the preparation of the draft budgetary plans of the euro area member states and the recommendations for the euro area member states in 2019.
The Chairman of the European Fiscal Board (EFB), Niels Thygesen, presented the EFB report. The EFB is an independent advisory body of the European Commission. It provides advice on matters related to the euro area fiscal stance.
The Eurogroup is required by EU law to discuss the euro area’s budgetary situation and prospects, in the framework of the assessment of the draft budgetary plans of the euro area member states. It therefore holds regular discussions on the euro area fiscal stance.
Ireland and Spain: post-programme surveillance missions
The European Commission and the European Central Bank presented to the Eurogroup the main findings from their post-programme surveillance missions to Spain and Ireland, which respectively took place in April and May 2018.
The European Stability Mechanism presented findings in relation to its early warning system in both countries.
The International Monetary Fund also informed about its recent Article IV consultation with Ireland.
According to the institutions’ reports, the economic performance of both Ireland and Spain remains strong, and the risks in terms of the repayment of their respective loans are low to very low.
Post-programme surveillance (PPS) is carried out in countries that have completed financial assistance programmes until at least 75% of the financial assistance received has been repaid. The purpose is to assess whether there are any risks to their ability to repay loans received during their programmes.
Bulgaria’s intention to join the EU’s Exchange Rate Mechanism (ERM II)
In the margins of the Eurogroup meeting, the representatives from the euro area members states, the European Central Bank and Denmark met in the presence of the European Commission and of Bulgaria to discuss the prospects of Bulgaria’s participation in the ERM II.
The participants of the meeting adopted a statement.