Eurogroup, 11 September 2020

Main results

The Eurogroup meeting was hosted by the German presidency of the Council in Berlin. It was the first in-person meeting of the Eurogroup since February 2020, when COVID-19 restrictions were introduced.

This was also the first meeting chaired by the Eurogroup President Paschal Donohoe, who took up the function on 13 July 2020.

Stocktaking of the economic situation

Ministers exchanged views on the current economic situation in the euro area, reviewed the policy action at national and European level and looked at the recovery needs economies may face after the COVID-19 crisis. 

The positive news is that after the euro area bottomed out in April and May, we saw a significant rebound in activity in June and July. We are all aware of the huge apprehension, the great concern that so many millions of citizens face; and we accept that it will take time, and it will take work to undo the damage caused by this crisis. But we are united in our commitment to do this.

Paschal Donohoe, President of the Eurogroup

Ministers also exchanged views on the national fiscal policy response as well as on the fiscal stance in 2021.

I sensed a shared willingness towards a coordinated approach on budgetary policy and for using the Eurogroup as a forum to reach this understanding. Across the euro area some crisis schemes will expire, but others will be extended and improved. Meanwhile, member states are developing new policies to boost the recovery. Paschal Donohoe, President of the Eurogroup

• COVID-19 coronavirus pandemic (background information)
• A recovery plan for Europe (background information)

Regular format

Thematic discussion: political economy of reforms

The Eurogroup held a thematic discussion on the political economy factors that facilitate the introduction of reforms, maximise their impact and ensure efficient deployment of public resources in the context of the recovery.

The discussion was based on a technical note prepared by the Commission.

We had a really rich and productive exchange of views where colleagues shared their insights and their national experiences on the role of the Eurogroup. And I want to use the Eurogroup to help forge a greater consensus on priority areas, on reforms, to build our path towards recovery. Paschal Donohoe, President of the Eurogroup

• Technical note: understanding the political economy of reforms (European Commission)

Inclusive format

Banking union

Ministers took stock of ongoing work on the four streams for further strengthening of the banking union:

• European Deposit Insurance Scheme (EDIS)
• financial stability
• crisis management
• enhanced cross-border financial integration

In June, we agreed to continue to work on strengthening the Banking Union as a matter of priority; and there was a broad agreement about the need to push forward in an overall manner, and we're aiming to make further progress on this during the year. Paschal Donohoe, President of the Eurogroup

Ministers also discussed the reform of the European Stability Mechanism (ESM) Treaty that envisages:

• the introduction of a backstop to the Single Resolution Fund by 2023
• a possible early introduction of the backstop
• the provision of liquidity in resolution