13 March 2024

Parliament: The role (and accountability) of the President of the Eurogroup

by HAGELSTAM, LEHOFER, LOI: This briefing paper provides an overview of the role and mandate of the Eurogroup and the role and accountability of its President, including the procedures for his/her appointment.

This paper includes the following sections: 1) The role of the Permanent President of the Eurogroup; 2) The President of Eurogroup and the European Parliament; 3) The role and mandate of the Eurogroup; and 4) Eurogroup transparency. 

I. The role of the Permanent President of the Eurogroup
Tasks of the President of the Eurogroup
The tasks of the President of the Eurogroup (PEG) are:
• To chair and steer EG meetings and sets the agenda on a monthly basis;
• To draw up the Euro group’s work programme;
• To present the outcomes of EG discussions to the public and the ministers of non-euro area EU countries during ECOFIN meetings;
• To represent the EG in international fora as e.g. the meeting of G7 Finance Ministers; and
• To take part in regular Economic Dialogues with the European Parliament.
Since Croatia joined the single currency area on 1 January 2023, the PEG is now responsible for steering the work of the 20 Finance Ministers forming the Euro Group.

 

Box 1: Eurogroup’s work programme for the first semester of 2024
Eurogroup’s work programme for spring 2024 is broadly in line with those identified in the second half of 2023. It will continue to focus on the three pillars that have guided the work of Eurogroup since the second half of 2022:
Economic and fiscal policies coordination: It will continue to discuss how to phase out energy support measures and tighten the euro area fiscal stance to ensure sustainable public finances and prevent inflation.

Deepening the EMU: The EG work intends to shift the focus from short-term pandemic responses to strengthen the euro area's economic performance globally. The EG discussions will build upon the Euro Area Recommendation by advocating for structural reforms and investments that stimulate growth and convergence within the EMU, enhance external competitiveness, and align with the objectives of the green and digital transitions. The EG will continue its discussion regarding the competitiveness of the euro area, guided by the dedicated EG work strand initiated in November 2023, considering the ongoing developments in energy prices and geopolitical tensions. EG in inclusive format is dedicated to advancing the future of European Capital and Financial Markets. Another priority is the ratification of the ESM Treaty to establish a common safety net for the Single Resolution Fund.

The euro as a digital and international currency: The EG will continue working on its commitment to overseeing the global position of the euro and regularly monitoring exchange rate developments. Following the ECB's decision in October 2023 to advance the digital euro project, the Eurogroup supports this initiative and pledges to actively contribute alongside EU co-legislators and the Eurosystem. Throughout the first semester of 2024, the Eurogroup will remain engaged in key political aspects of the digital euro project, considering international developments. As financial stability and global economic developments remain key priorities, the EG seeks to contribute to international discussions, e.g. G7 meetings, by coordinating the euro area’s position. It will also continue to assess the plans and actions of non-euro area Member States to adopt the euro....

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