At their informal meeting in Vienna on Saturday 8 September, the finance ministers of the European Union discussed the possibility of creating new budgetary instruments for the Eurozone, specifically a reform support programme, an investment stabilisation function and a European unemployment stabilisation fund, but there is very little solid progress to report, with negotiations now having to resume at Eurogroup level (see EUROPE 12091).
Readers may recall that the reform support programme and the investment stabilisation function were proposed by the European Commission in the context of the next multiannual financial framework 2021-2027 (see EUROPE 12013, 12031). For its part, the European unemployment stabilisation fund was proposed by Paris and Berlin in their joint roadmap for deepening Economic and Monetary Union (EMU) (see EUROPE 12044).
These three possible future instruments were discussed at the same time by the EU financial policymakers at their meeting, but the positions of each capital remain similar to those previously expressed, which were the subject of significant differences of opinion (see EUROPE 12052).
For instance, certain member states, in particular the Netherlands and the Nordic countries, are still sceptical about the creation of a stabilisation function. Moreover, the subject gave rise to a fairly heated exchange between the Danish and Greek ministers. Additionally, several member states, for instance the Baltic states, Ireland and Luxembourg, are in favour of putting sizeable fiscal buffers into place in each member state before thinking about creating a stabilisation function.
France welcomes the fact that the idea of a Eurozone budget is gradually taking hold in the minds of the various member states.
However, it would appear that Berlin is 'selling' its idea of the European unemployment stabilisation fund in a relative sense. The German government does not seem particularly inclined to make rapid progress on the matters relating to deepening the EMU, with the exception of subjects concerning the European Stability Mechanism (ESM) and the creation of a common backstop for the Single Resolution Fund, the financial arm of Banking Union in the Eurozone (see EUROPE 12089).
No decision, however, was expected at this informal meeting of the financial policymakers and it will now be for the Eurozone to discuss the issue in the framework of the mandate conferred upon it with a view to the presentation of more specific proposals by December. (Original version in French by Lucas Tripoteau)