Today, Vítor Constâncio presented the ECB Annual Report for 2016 to the Economic and Monetary Affairs Committee of the European Parliament. Read the ECB Vice-President's statement here.Read More..
News & Comments
We welcome short entries about relevant European or national developments for this News and Comments section. You are invited to use the contact form for this or to directly contact Thomas Beukers (email@example.com) or Viorica Vita (firstname.lastname@example.org).
Today's ECOFIN meeting discussed the future of EMU as well as the issue of non-performing loans. Read the press statement by Commission Vice President Dombrovskis here.Read More..
Read the statement by Commissioner Moscovici here (in French).Read More..
The college of European Commissioners in a seminar today discussed the reflection papers on the social dimension of Europe and on completing Europe's Economic and Monetary Union (EMU), following up on the White Paper on the Future of Europe the Commission presented on 1 March, and which marked the beginning of a process for the EU27 […]Read More..
Commission President Juncker issued a statement reacting to a letter Greek Prime Minister Tsipras on the occassion of the Social Summit. Read the reaction here.Read More..
At the European Parliament, SRB chair Elke König discussed issues such as changes in the regulatory framework, the state of play of Minimum Requirements for own Funds and Eligible Liabilities (MREL) and the Single Resolution Fund. Read König's full statement to the European Parliament's Economic and Monetary affairs committee here.Read More..
Today the ECB Governing Council decided to keep its main interest rates unchanged and to continue to make purchases under the APP at the current monthly pace of €80 billion until the end of March and that, from April 2017, the net asset purchases were intended to continue at a monthly pace of €60 billion […]Read More..
Today, the European Commission sent a letter to the Romanian Minister of Finance identifying a clear risk of non-compliance with the deficit criterion.Read More..
Today, the European Commission has presented its report on the compliance by the relevant parties to the Treaty on the Stability, Coordination and Governance in the EMU (the TSCG) with their obligation to implement the Balance Budget Rule in their national legal orders. The TSCG in article 8(1) invites the Commission to present this report assessing the compliance […]Read More..
During the EP's plenary session, a resolution prepared by MEPs Reimer Böge (EPP, DE) en Pervenche Berès (S&D, FR) was adopted on a budgetary capacity for the euro area. The resolution states the following principles: "The transfer of sovereignty over monetary policy requires alternative adjustment mechanisms such as the implementation of growth-enhancing structural reforms, the […]Read More..
In its 2017 winter forecast, which is at the basis of its economic policy decisions in the European economic governance framework, the European Commission concludes that the European economic recovery is expected to continue this year and next: for the first time in almost a decade, the economies of all EU Member States are expected […]Read More..
Read the SRB press release here.Read More..
An IMF staff report published on 7 February calls on the euro area to offer significant debt relief to Greece. It summarises: "Despite the policy constraints imposed by its membership in the currency union, Greece has made significant progress in unwinding its macroeconomic imbalances. But extensive fiscal consolidation and internal devaluation have come with substantial […]Read More..
The 2017 European Parliamentary Week included a European Semester Conference (for the exchange information on best practices in implementing the Semester cycles, and to strengthen cooperation in order to scrutinise the actions of the executive at national and European levels within the framework of the European Semester cycle) and an interparliamentary Conference on Stability, Economic […]Read More..
The High Level Group on Own Resources, led by former Commissioner and Italian Prime Minister Mario Monti, and established in February 2014 to reflect on finding more transparent, simple, fair and democratically accountable ways to finance the EU, published its final report with suggestions on the future financing of the EU. Among the many recommendations […]Read More..
The Commission conclused that Spain, which is currently in the corrective arm, is broadly compliant with the Stability and Growth Pact in 2017; Lithuania, which is in the preventive arm, instead is deemed at risk of non-compliance pending the assessment of requested flexibility. Read the press release here.Read More..
After Greece adopted its 2017 budget with a tight 152-146 majority on Saturday 10 December, including a total of 617 million to around 1.6 million low-income pensioners, the Eurogroup has circulated a statement concluding that the necessary unanimity for Greek debt relief (see this ESM explainer) is now lacking: "- The institutions have concluded that […]Read More..
In a blogpost, IMF economist Obstfeldt and Director of the IMF's European Department Thomsen have reacted to criticism that the IMF would be demanding more fiscal austerity for Greece, in particular for making this a condition for urgently needed debt relief. According to Obstfeldt and Thomsen, these allegations are not true. For the IMF a primary […]Read More..
The ECB Governing Council on 8 December decided to extend its asset purchase programme programme, broadly considered as the ECB version of quantitative easing (QE) until at least the end of 2017, although from April 2017 monthly purchases will be reduced from €80 billion to €60 billion. Read the ECB press release on its decision […]Read More..
In its recommendation of 16 November for a Council recommendation on the economic policy of the euro area, the European Commission had called for a positive fiscal stance, inviting member states with budgetary space to invest (especially Germany and the Netherlands). The Eurogoup disagrees, arguing that a broadly neutral aggregate fiscal stance in 2017 is appropriate. […]Read More..
The Eurogroup of 5 December 2016 discussed the sustainability of Greek public debt with the objective to regain market access. In this context, the Eurogroup endorsed today the full set of short-term measures on the basis of proposals by the ESM and preparatory work by the EWG, which will be implemented by the ESM following […]Read More..
Read the statement by the European Commission's Vice-President Dombrovskis here. The European Parliament's press release reads: "Various ways to avoid or cushion the negative impact of austerity were debated in Tuesday's morning debate with Commission Vice-President Valdis Dombrovskis on EU economic priorities in 2017 and yearly “European Semester” economic policy coordination work. While some MEPs […]Read More..
A team of economists of the European Commission has carried out an ex post evaluation of the three year EU/IMF financial assistance for Portugal, which ended in May 2014. Lessons are drawn for the future on issues such as the importance of a focus on the most macro-critical weaknesses affecting the functioning of the economy […]Read More..
In the words of the European Commission: "From an economic perspective, the overall euro area stance should be differentiated depending on the situations of countries in terms of sustainability and stabilisation. A number of Member States in the south-east of the fiscal map still have significant consolidation needs.The south-west quadrate shows Member States, which have […]Read More..
In its assessment of the draft budgetary plans of the euro area Member States (non taking into account Greece which is not subject to the same procedure because of its financial assistance programme), the European Commission has found no cases of serious non-compliance with the requirements of the Stability and Growth Pact (SGP). However, in […]Read More..
Today George Papaconstantinou, former Finance Minister of Greece and author of ‘Game Over: The Inside Story of the Greek Crisis’, the point man in the Greek economic and financial crisis, presented his his new book at the EUI and gave the insider's view of the Greek Crisis as experienced by him. When he became Finance […]Read More..
The lecture will take place on 22 November at Villa La Fonte (EUI) and will start at 5PM. You can register here.Read More..
The Eurogroup of 7 November heard presentations by Danièle Nouy, the Chair of the European Central Bank's Supervisory Board, and Elke König, the Chair of the Single Resolution Board (SRB). They briefed the Eurogroup on recent developments in the financial sector, on the two institutions' main activities in the past months, and on their key […]Read More..
The European Commission has asked several euro area member states for clarification on their draft budgetary plans for 2017, relating to issues such as reassurances on the behaviour of incoming governments, clarification on demands for flexibility, compliance risks with the Stability and Growth Pact (SGP). All member states apart from Greece presented their plans in accordance with article 6(1) […]Read More..
All euro area member states – except for Greece – have presented their draft budgetary plans for 2017 in accordance with article 6(1) of Regulation (EU) No. 473/2013. The Commission now has to adopt an opinion on the draft budgetary plans as soon as possible and in any event by 30 November (article 7(1) of […]Read More..
11 October: Workshop The European Banking Union and Its Instruments – Experience from the First Years of an Interplay with National Banking Supervision and ResolutionOctober 11, 2016
After two years of existence, it is time to focus on what happened in practice for the Single Supervisory Mechanism (SSM) and the Single Resolution Mechanism (SRM), i.e. in the core of the Banking Union, in Member States and beyond the EU. The workshop gathers as broad a range of perspectives as possible with a […]Read More..
10 October: Eurogroup clears way for partial approval of disbursement to Greece by the ESM Board of DirectorsOctober 10, 2016
The Eurogroup adopted the following statement on the first review of the Greek ESM Programme: "The Eurogroup welcomes the implementation by the Greek authorities of the set of 15 milestones in the context of the first review of the ESM programme. The Eurogroup commends the Greek authorities for adopting the necessary further measures to reform […]Read More..
10 October: ADEMU lecture by René Smits on Sustainable Economic and Monetary Union in Europe in turbulent timesOctober 10, 2016
Starting from a legal-institutional perspective, the lecture is scheduled to sketch the major challenges for researchers and policymakers alike in the areas of economic governance, monetary union and banking union with a view to the sustainability of Europe's Economic and Monetary Union. Multidisciplinary approaches are called for. Policies and research should be embedded in a […]Read More..
Following the Council decision of 12 July 2016 that both Spain and Portugal had under the excessive deficit procedure failed to take effective action in response to Council recommendations under article 126(8) TFEU, on 3 October a structured dialogue took place between the Commission and EP on one of the consequences of this decision, namely suspension […]Read More..
At the occasion of the publication Stiglitz' most recent book The Euro: How a Common Currency Threatens the Future of Europe, the nobel prize winner and the president of the Eurogroup debated the future of the euro at an event organised by the John Adams Institute in Amsterdam. Read more on Dijsselbloem's thoughts on the book […]Read More..
Read the Council press release below: "On 20 September 2016, the Council issued a recommendation calling on the eurozone member states to establish national productivity boards. The boards will analyse developments and policies that can affect productivity and competitiveness. They will provide independent analyses and reinforce policy dialogue at the national level. This will help reforms […]Read More..
20 September: ECJ judgments on the liability of EU institutions within the ESM and the legal nature of the Eurogroup (Ledra Advertising and Mallis Case)September 20, 2016
Both cases were started by a number of Cypriot account holders that suffered losses from the bank restructuring that followed from the Cypriot request for financial assistance from the ESM. In the Ledra Advertising case, the Grand Chamber of the Court established that the Commission and ECB can be liable for their actions under the […]Read More..
External presentations were given at the informal ECOFIN, one of which was based on a paper by Brueghel on the prerequisites of a euro area fiscal capacity.Read More..
Following up on its decision of 12 July under article 126(8) TFEU establishing that Spain and Portugal had violated the Stability and Growth Pact, the Council on 8 August has taken a decision imposing a fine on both countries which was however reduced to zero. With regard to the imposition of a fine on Spain, […]Read More..
The European Banking Authority on Friday has published the results of its 2016 stress test, testing the resilience of the European banking sector to an adverse scenario. This time around the test only provided information on the 51 tested banks in the EU/EEA, without a pass or fail threshold. See http://www.eba.europa.eu/risk-analysis-and-data/eu-wide-stress-testing/2016 and http://www.eba.europa.eu/-/eba-publishes-2016-eu-wide-stress-test-resultsRead More..