The Eurogroup President gave a brief account of the main issues discussed: banking union, Cyprus and Spain, national insolvency frameworks, Greece and draft budgetary plans.
We have spent quite some time on the banking sector in Europe, in particular the banking union. [...] the sector, across the board, is in better shape than years ago. Of course there are legacy issues in a number of sectors and institutions which have to be addressed, which are being addressed, but which should not undermine the confidence in the system as a whole as it improves the quality of its standards. [...] Overall, we commended both institutions for the excellent work that they have been doing so far and the efficient functioning of the banking union. [...]
Secondly, we got a debrief from the post-programme surveillance in Cyprus and Spain. Regarding Cyprus, we welcomed the positive reports on strong economic recovery, 2.5%-3% economic growth. Good work done by the Cypriot authorities, including in the financial sector. We also took note of the still very high stock of NPLs and the possible risk to the fiscal outlook. [...]
On Spain, we were briefly informed by the institutions on the outcome of the review mission to Spain, which was limited in scope. [...] The debrief from the institutions showed on-going strong economic recovery in Spain and stabilisation of the financial sector. We had some discussion on whether the on-going economic recovery was due to the fact that Spain did not have a government. Now it once again has a government. [...]
We also returned to the subject of national insolvency frameworks. [...] We will return to the topic in the first half of next year, as soon as we have findings from ongoing Commission initiatives to improve data availability in this area, and the Commission will, already in the short term I believe, come forward with a legislative proposal so we can make more progress on this important topic for the Eurozone.
Then Greece. [...]Progress is being made. Obviously it's in everyone's interest to finalise the second review as soon as possible. At the next meeting of the Eurogroup we will spend more time on Greece. This will be on the 5 December, when we will know more about the work the ESM is doing on the possible debt relief measures for the short term. [...]
Finally, Commissioner Moscovici debriefed us on the ongoing process with the draft budgetary plans. The Commission's opinion will come out on the 16th I believe and then we will have that also on our agenda on the 5 December. [...]
Full remarks
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