Sustainability of pension systems in the euro area
The Eurogroup discussed the different policy instruments that can be used to improve the fiscal sustainability of pension systems in the euro area.
In addition to the traditional parameters such as pension contributions and expenditure, the Eurogroup also discussed active labour market policies and reforms that could reinvigorate economic activity in a sustainable manner. It also looked into the best practices relating to automatic corrections of pension systems in response to increased longevity.
The Eurogroup adopted a statement containing a number of agreed principles that aim to increase the sustainability of the pension systems. It invited the European Commission to take them into account in its surveillance processes and to explore the development of appropriate benchmarks on this basis.
International Monetary Fund - Article IV review of the euro area
The Managing Director of the International Monetary Fund (IMF), Christine Lagarde, informed the Eurogroup about the Fund's assessment of the euro area economic outlook, risks and policy challenges. The assessment was carried out in the context of the IMF's annual Article IV consultation.
The IMF confirmed that the economic recovery in the euro area continues. It recommended that the euro area continue to focus on structural reforms, investment and financial sector reforms.
The Eurogroup had a constructive discussion on these recommendations. The IMF's concluding statement will be available on its website in due course.
The Eurogroup also discussed inflation in the euro area as well as euro exchange rate developments, based on presentations from the Commission and the European Central Bank. It also adopted its work programme for the second half of 2016.