Chapter News

Eurogroup, 21 May 2021 Main Results

The Eurogroup discussed macroeconomic and fiscal developments in the euro area and looked into the functioning of adjustment mechanisms. Ministers also adopted the Eurogroup work programme for the second half of 2021 and heard the reports from the chairs of the ECB Supervisory Board and of the Single Resolution Board.

Exchange of views on macroeconomic and fiscal developments

The Eurogroup exchanged views with the chair of the ECON committee of the European Parliament, Ms Irene Tinagli, on the macroeconomic and fiscal situation in the euro area, also on the basis of the Commission’s spring forecast.

We can see a recovery taking hold. But we also know that the challenges remain great, that the risk of scarring and damage from this pandemic in our societies, for our citizens and on the balance sheets of employers continues to be real.

Paschal Donohoe, President of the Eurogroup

This exchange is part of an ongoing dialogue aiming to strengthen the exchange of information between the European Parliament and the Eurogroup.

Functioning of adjustment mechanisms within the euro area – insights from the COVID-19 pandemic

Finance ministers discussed the functioning of adjustment mechanisms in the euro area, focussing on the COVID-19 pandemic.

In September 2017, the Eurogroup agreed to use economic resilience as a general framework for future thematic discussions on growth and jobs. As part of this work stream, ministers look into adjustment mechanisms, which are an important element of economic resilience in the euro area.

We will plan for a fiscal policy that will get the balance right between continuing to support our employers and our citizens towards a sustainable recovery, but also doing so in a sustainable and in a targeted way.

Paschal Donohoe, President of the Eurogroup

Work programme for the second half of 2021

The Eurogroup adopted the work programme for the second half of the year, covering the period from July until December.

Reporting on banking union operational aspects

13th hearing of the chair of the Supervisory Board

The chair of the Supervisory Board of the European Central Bank, Mr Andrea Enria, informed the Eurogroup about the supervisory tasks carried out since the last report. The chair focused on credit and climate risks, and Brexit.

A regular exchange of views between the Eurogroup and the chair of the ECB’s Supervisory Board is foreseen in the regulation (1024/2013) of the Single Supervisory Mechanism (SSM) as well as in the memorandum of understanding between the Council of the European Union and the ECB on the cooperation on procedures related to the SSM.

The 12th hearing took place in November 2020.

Reporting on recent activities of the Single Resolution Board

The chair of the Single Resolution Board (SRB), Ms Elke König, updated the Eurogroup on the recent activities undertaken by the SRB, focusing particularly on the progress made on resolvability, the minimum requirements for own funds and eligible liabilities (MREL) and the build-up of the Single Resolution Fund (SRF).

This is a regular presentation, which takes place twice a year in parallel with the hearing of the chair of the ECB Supervisory Board.

Compliments of the European Council.