The Eurogroup agreed to proceed with the reform of the European Stability Mechanism (ESM): to sign the revised ESM treaty and to launch its ratification.
Reform of the European Stability Mechanism (ESM)
The Eurogroup agreed to proceed with the reform of the European
Stability Mechanism (ESM): to sign the revised ESM treaty and to launch
its ratification.
The adjustments we have agreed today will further develop
the ESM’s toolkit. We will now proceed to the signature of the Treaty in
January and launch the procedures for ratification at national level.
Paschal Donohoe, President of the Eurogroup
Among other things, the reform establishes a common backstop to the
Single Resolution Fund (SRF) in the form of a credit line from the ESM.
Ministers also agreed on the early introduction of the common backstop
by the beginning of 2022.
The backstop is a last resort, it's a further safety net at
our disposal should we need it. It will reinforce and complement the
resolution pillar of the banking union and will help to ensure that a
bank failure does not harm the broader economy or indeed cause financial
instability.
Paschal Donohoe, President of the Eurogroup
The Eurogroup issued a statement.
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ESM reform and the early introduction of the backstop to the Single Resolution Fund, 30 November 2020">Statement
of the Eurogroup in inclusive format on the ESM reform and the early
introduction of the backstop to the Single Resolution Fund, 30 November
2020
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Economic and Monetary Union (background information)
Banking union
Ministers were informed by the Chair of the High-Level Working Group
on EDIS – the European deposit insurance scheme – on progress on the
further strengthening of the banking union.
We took stock of the steady progress in the High-Level
Working Group on other elements of banking union. Now that we reached
an agreement on the ESM reform, we are in a good position to move
forward in other areas.
Paschal Donohoe, President of the Eurogroup
Preparation of December Euro Summit
The Eurogroup prepared the Euro Summit that will take place on 11
December 2020. Eurogroup President Paschal Donohoe will report to the
Euro Summit on the state of progress of the banking union.
© European Council
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