"From a Eurogroup perspective, it is important that we approach national budgetary preparations in a coordinated manner to help shape our policy decisions, particularly as the process of vaccination gathers steam and our recovery begins to slowly start."Paschal Donohoe, President of the Eurogroup
Macroeconomic developments and policy prospects in the euro area
The Eurogroup exchanged views on macroeconomic developments and policy prospects in the euro area.
In light of the uncertainty and challenge, there continues to
be a great need to coordinate our monetary and our budgetary efforts.
From a Eurogroup perspective, it is important that we approach national
budgetary preparations in a coordinated manner to help shape our policy
decisions, particularly as the process of vaccination gathers steam and
our recovery begins to slowly start.
Paschal Donohoe, President of the Eurogroup
The discussion was based on the European Commission's Winter 2021
Forecast and the latest information on health developments presented by
Michael Ryan, World Health Organisation (WHO) Executive Director for
Health Emergencies Programme and Bruce Aylward, Senior Advisor
responsible for the WHO-China Joint Mission on COVID-19.
When we start to emerge from the health crisis, our policy
response will need to adapt but gradually – that is something we will be
talking about regularly in the coming months because we all have an
interest in a successful and united return to growth.
Paschal Donohoe, President of the Eurogroup
International role of the euro
Ministers discussed the international role of the euro. The
discussion followed guidance of the December 2020 Euro Summit and the
publication of the European Commission's communication of 19 January
2021 "The European economic and financial system: fostering strength and
resilience".
The aim is to reduce our dependence on other currencies, and
to strengthen our autonomy in various situations. At the same time, an
increased international use of our currency also implies potential
trade-offs, which we will continue to monitor. During the discussion,
ministers also emphasised the potential of green bond issuance to
enhance the use of the euro by the markets while also contributing to
achieving our climate transition objective.
Paschal Donohoe, President of the Eurogroup
The Eurogroup has discussed the issue several times in recent years
since the December 2018 Euro Summit called for work to be taken forward.
Solvency of the corporate sector – state of play
Ministers exchanged views the recent developments in the solvency of
the corporate sector based on a note prepared by the Commission. The
COVID-19 pandemic has had a strong impact on the corporate sector,
leading governments to extend unprecedented public support measures to
the economy.
The support that we have put in place at the national level
and the framework we have agreed on at the European level have all
helped to keep many businesses afloat during lockdowns. This has been a
success story, but we are aware that difficult times could lie ahead.
Most businesses certainly have a bright future, but of course, many
businesses are going to need time to repair their balance sheets and
unfortunately, there could be some that will not be viable in the longer
term due to changing health circumstances, and what that will mean for
how economies are structured.
Paschal Donohoe, President of the Eurogroup
Ministers discussed the need to monitor the situation in the
corporate sector and how to best target such support. A thematic
discussion on insolvency frameworks will follow in April.
Miscellaneous
Updated draft budgetary plan of Lithuania
The Eurogroup discussed the updated draft budgetary plan of Lithuania
for 2021, on the basis of the Commission opinion issued on 21 January
2021.
Policy priorities of the new government of Estonia
Minister Keit Pentus-Rosimannus presented the policy priorities of
the new Estonian government. This is standard practice in the Eurogroup
when new governments come into office.
Eurogroup
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