Eurogroup, 12/09/2014, 12 September 2014

Eurogroup moves ahead with structural reform agenda 

At the Eurogroup meeting on 12 September in Milan the ministers reaffirmed their commitment to reduce the tax burden on labour. The objective is to make euro area economies more competitive and boost economic activity and employment. 

To reach this objective, the Eurogroup agreed on a set of common principles that will shape reforms of member states' taxation systems.

These principles focused on the importance of: 

• reducing taxes on the most vulnerable citizens
• compensating tax reductions on labour by compensatory measures in areas that are less detrimental to growth
• undertaking tax reductions together with any other necessary labour market reforms
• obtaining broad political and societal support for the reforms

Member states will be expected to implement these principles when drawing up their draft budgets for 2015. Eurogroup will assess draft budgets in November based on the Commission's assessment.

Eurogroup committed to Stability and Growth Pact 

The Eurogroup agreed that the current low growth and subdued inflation makes decisive action essential on all fronts. Recent monetary policy measures announced by the European Central Bank need to be complemented by action from member states.

The pursuit of sound fiscal policies, structural reforms and investment facilitation continue to be the Eurogroup's growth strategy. Ministers reiterated that this strategy must be pursued within the rules of the Stability and Growth Pact (SGP). Any form of flexibility should be found within SGP rules and structural reforms undertaken in member states must be taken into consideration.

"We all agreed we would stick to the rules," said the President of the Eurogroup J.Dijsselbloem after the meeting.

The next Eurogroup meeting will take place on 13 October 2014. 

• Photos and videos of the Eurogroup meeting, 12 September 2014