Brussels: Europe and the Arabs
The ministers of finance and economy in the European Union countries resumed meetings that started on Monday through the meeting of ministers of the eurozone countries, and then they were joined today, Tuesday, by their counterparts in the rest of the union countries, the "Ecofin". , with the aim of validating joint findings.
According to what was issued by the federal institutions in Brussels, the meeting of finance and economy ministers in the EU countries today, Tuesday, focuses on several files, foremost of which is the tax file. As well as the Banking Crisis Management and Deposit Insurance Framework file, where the Commission will present its proposals regarding the review of the framework for banking crisis management and deposit insurance (CMDI), and ministers can provide their initial reactions. This is in addition to the file of the economic and financial impact of the Russian aggression against Ukraine, where the Council will assess the economic and financial impact of the Russian war against Ukraine, with a special focus on issues related to customs. The commission will brief the ministers on the implementation of sanctions against Russia, focusing on the possibility of circumventing restrictive measures on the export and import of goods from a customs perspective. Ministers will have the opportunity to exchange views. As well as the economic recovery profile in Europe regarding the Recovery and Resilience Facility (RRF), the Commission will update ministers on the status of implementation and ministers will have the opportunity to exchange views, including on demand for RRF loans and experiences with the RRF on a performance basis.
international meetings
The Presidency and the Commission will brief the Council on the main outcomes of the G20 meeting of finance ministers and central bank governors and the spring meetings of the International Monetary Fund, which were held on April 10-16, 2023. As for the financial services file, the Presidency will present the latest developments in legislative proposals in the field of financial services.
The ministers of the eurozone had concluded their meeting on Monday and discussed macroeconomic developments in the eurozone and the Commission submitted its economic forecasts for the spring to the eurogroup. On this basis, the Eurogroup exchanged views on economic prospects and challenges for policy coordination in the future.
"Overall, the picture remains one of economic resilience in the euro area. Our growth continues to pick up at a better level than we expected. At the same time, inflation is still very high and should come down. We have realized that what is still very important for our societies is The level of employment, which is a real bright spot where you see a record number of people at work, said Pascal Donohue, President of the Eurogroup, at the close of the meeting on Monday.
Corporate sector:
On the basis of the Commission's memorandum, the ministers discussed the challenges facing the Eurozone corporate sector in the context of escalating geopolitical tensions.
“We've seen some sectors that have been hit by higher energy prices. But we've also seen others that have already seen their profitability grow. Unlike households, businesses that receive support need to look at how to support their long-term viability, as the support measures that have come to an end must come to an end. We apply it at some point and it cannot undermine the ability of our economies and governments to allocate resources efficiently. We also emphasized the need for support measures that avoid fragmentation of the single market and maintain consistency with existing long-term policy goals, such as the green transition and a greater degree of energy independence. Pascal Donohue, President of the Eurogroup.
Reporting to Union Banking
Ministers of the Member States of the Banking Union listened to the biannual report of the Chairs of the Single Supervisory Mechanism (SSM) and the Single Decision Board, Andrea Enria and Dominique Laborix. After the chairmen attended the previous Eurogroup meeting in April, this provided more insights into the state of the banking sector in light of recent financial events. As usual, the participants also listened to reports on supervision and decision-making activities in the competence of the institutions.
Central bank digital currencies
The Eurogroup, in comprehensive coordination, exchanged views on the international aspects of central bank digital currencies (CBDCs) and the progress of the digital euro project. The discussion was based on an issues note, presentations by institutions, and an update by Sweden's Finance Minister, Elisabeth Svantesson, on the state of play in the e-krona project.
We discussed the advantages and disadvantages of allowing users outside the eurozone to access a digital euro and the European Central Bank gave us the options and trade-offs involved in making a digital euro work with other central bank digital currencies. We all recognize the importance of international cooperation in this area, as our Swedish colleague Elisabeth briefed us. We will therefore come back to this topic again shortly as the European Central Bank continues its work on finalizing the investigation phase of the digital euro,” said Pascal Donohue, President of the Eurogroup.
The discussion was part of a regular exchange at Eurogroup on the digital euro project and assessing the progress of the International Central Bank's digital currency projects.
Capital Markets Association
The President of the Eurogroup presented his views on how to advance the capital markets union as a follow-up to the European Summit in March 2023 and in line with the discussions at the European Community meeting in plenary format on April 28, 2023. “I presented a process to ministers agreed tonight. We will set ourselves a target, by March 2024, to reach an agreement on the areas Which we ask the next commission to consider in terms of how to deepen capital markets union. This all relates to a strategic discussion on areas where further progress is possible and likely in the coming years. We want to go beyond those topics that are already on the legislative agenda and have a strategic reflection on more topics that we, the Commission and the European Parliament can address that will make a difference in how we can better finance growth within the EU. According to Pascal Donohue, President of the Eurogroup