24 May 2018

Main results - Eurogroup

The Eurogroup first met in regular format and later in inclusive format. Ministers were informed about the staff-level agreement between the institutions and the Greek authorities. They also discussed the European Commission spring forecast, spending reviews and the future role of the ESM.

Greece's economic adjustment programme

The Eurogroup was informed about the staff-level agreement concluded by the institutions and the Greek authorities on 19 May. The focus is now on Greece's successful implementation of the agreed reforms, ahead of the June Eurogroup meeting.

The Eurogroup also continued its discussions on possible debt measures in preparation for the decisions that are planned for the Eurogroup meeting in June.

Greece's economic adjustment programme is now under its fourth and final review . The programme's formal expiry date is 20 August 2018.

Economic situation in the euro area: European Commission spring forecast

The European Commission presented its 2018 spring forecast, published on 3 May.

• European Economic Forecast. Spring 2018

Thematic discussion on growth and jobs: spending reviews

The Eurogroup held a follow-up discussion on spending reviews, this time focusing on the challenge of ensuring ownership when conducting spending reviews. Irish and Spanish ministers shared their countries' experiences and lessons learned from their recently completed spending reviews.

The Eurogroup had previously discussed this topic in June last year, and in September 2016, when it adopted common principles for improving expenditure allocation.

Spending reviews help governments detect areas where savings and efficiency gains could be made and where spending could bring greater value for money.

• Quality of public finances: Enhancing ownership in spending reviews (technical background note by the European Commission)

Banking union and European Stability Mechanism (ESM)

Finance ministers from 27 EU member states exchanged views on the completion of the banking union and the future role of the ESM. They took stock of the progress made so far and discussed the way forward in preparation for the upcoming leaders' meeting in June.

Full press release

Remarks by President Centeno following the Eurogroup meeting of 24 May 2018

Commissioner Moscovici's introductory remarks at the Eurogroup press conference

[...]Finally, a few words on our discussion on deepening EMU which took place in the enlarged format at 27, with a particular focus on the Banking Union aspects.

The Commission has always maintained that risk reduction and risk sharing have to go hand in hand. Progress on both will lead to a "win-win" outcome for all stakeholders involved.

So we are working to clarify the steps and sequencing of risk sharing and risk reduction, in particular, on identifying ways to help us track progress on risk reduction. I should say further progress, as a lot has already been achieved - for example non-performing loans have fallen by a third since the peak of the crisis and remain on a declining path.

In terms of the next steps in the completion of the Banking Union, the priorities are:

First, concluding the negotiations on the Banking Package; this is on the table of the ECOFIN tomorrow, and a general agreement would obviously send a positive signal.

Second, setting up a workable and credible Common Backstop to the Single Resolution Fund, to be provided by the ESM. Many ministers acknowledged today that sufficient progress is there to take the necessary decisions in June to enable the ESM to take on the role of providing the backstop to the Single Resolution Fund, which will be a very important step forward and I also welcome the cooperation between the Commission and the ESM.

And third, putting in place the European Deposit Insurance Scheme – on which we are aiming for an agreement on the main principles in June, together with a mandate for political discussions on legislation for a first phase of EDIS.

 

We need to see meaningful progress on these issues in time for the June Summit. This will be a very important milestone to demonstrate our resolve and unity, and our commitment to strengthen the performance and stability of our Economic and Monetary Union. This will not be the end of the road to a completed EMU, but it must be a moment in which we accelerate along that road.

Full remarks

© European Council