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Eurogroup reviews progress in Ireland, Spain, Portugal and Greece
Ireland and Spain's respective programmes are on track to end in December. Ministers welcomed the major financial sector reform undertaken in both countries. Although the deficits remain high, the Eurogroup acknowledged steady progress towards sustainable public finances.
Ireland will receive a €2.3 billion disbursement from the European Financial Stability Facility in light of the successful completion of the 11th review of its programme.
Exit strategies for Ireland and Spain will be discussed in detail by Eurogroup in November. The President of the Eurogroup Jeroen Dijsselbloem emphasised that there was a common interest in making the return to the markets "a successful and sustainable one".
The Eurogroup was also updated on the developments in Portugal where competitiveness has improved and the economy is rebalancing towards export-led growth. The Eurogroup underlined that the pace of fiscal consolidation and reform must be upheld to reduce the high deficit and to ensure a durable recovery. The exit strategy for Portugal will be discussed early next year.
Ministers also discussed progress in Greece. The authorities are striving for a primary surplus in 2013, and measures to improve the business climate and competitiveness are beginning to work. Yet the road ahead remains challenging. Significant public sector reforms are still required and debt levels remain high. A comprehensive review of the Greek programme will take place towards the end of 2013.
Towards a Banking Union
Ministers took stock of the progress made towards a Banking Union. The discussion focused on how to deal with any capital shortfalls identified by the upcoming asset quality review of the euro area's systemically important banks.
The Eurogroup was in broad agreement that private sources of financing should first be sought. Only if these were insufficient should public funds be deployed in accordance with state aid rules. The European Stability Mechanism (ESM) could be used if a Member State cannot afford to use public funds.
Video of press conference