Main results
Inclusive format
Budgetary instrument for convergence and competitiveness
The Eurogroup in inclusive format agreed on all the critical elements of governance and financing of the budgetary instrument for convergence and competitiveness (BICC) for the eurozone.
It defined governance, financing as well as allocation and modulation of the BICC in a term sheet.
Only two years ago, a fiscal capacity for the euro was a purely academic endeavour. Last night, we turned it into reality. This is a new pillar in the foundations supporting the euro.
Eurogroup President Mário Centeno
- Term sheet on the budgetary instrument for competitiveness and convergence (BICC)
- Deepening Europe's Monetary and Economic Union (background information)
- Euro Summit, 21/6/2019
Regular format
Banking union - Eurozone aspects
The chair of the European Central Bank's supervisory board, Andrea Enria presented recent activities of the Supervisory Board, focusing on bank profitability, Brexit preparedness, anti-money laundering measures, Basel 3 implementation and the supervisory challenges for 2019.
The Chair of the Single Resolution Board, Elke König informed ministers about ongoing activities of the SRB, focusing particularly on progress regarding resolution planning, minimum requirement for own funds and eligible liabilities (MREL) and resolvability. She will also give an update on the build-up of the Single Resolution Fund (SRF) and provide information on Brexit preparations.
Thematic discussion on growth and jobs: Competitiveness developments in the eurozone
As part of the discussion on growth and jobs, ministers exchanged views on developments in competitiveness in the eurozone, on the basis of a technical note by the Commission.
Portugal Post Programme Surveillance – 10th review
The European Commission and the European Central Bank (ECB) informed ministers on the main findings of the 10th post-programme surveillance mission to Portugal that was carried out between 14-19 June. The European Stability Mechanism (ESM) briefed the Eurogroup on its early warning system. The International Monetary Fund (IMF) conducted its Article IV mission in parallel.
Post-programme surveillance (PPS) starts automatically after the end of financial assistance programmes and continues until at least 75% of financial assistance has been repaid. PPS is biannual in terms of reporting and missions.
Other topics
The Eurogroup gave it support to the candidacy of Fabio Panetta to replace the outgoing member of the ECB’s executive board, Benoît Cœuré.
Eurogroup President Mário Centeno also invited the member states to put forward their candidates to replace Sabine Lautenschläger in the ECB's executive board with a view of agreeing on a candidate at the November Eurogroup.
The Eurogroup had a follow-up discussion on the economic outlook in the eurozone. It has been monitoring economic developments closely for several months and agreed to closely co-ordinate policies in case downside risks materialise.
We agreed that if there is a more marked downturn, we should not tighten our policies and make it worse. Where possible, our fiscal stance should be more accommodative.
Eurogroup President Mário Centeno
Ministers also took stock of exchange rate developments over the past months in view of the upcoming annual meetings of the World Bank Group and the International Monetary Fund from 14 to 20 October.