The Finance Ministers of the Twenty-seven (all except the UK Minister) will discuss the architecture of the future fiscal capacity for the euro area to support competitiveness and convergence on Monday 11 February at the Eurogroup meeting.
This will be the main item of this Eurogroup in inclusive format, which will follow the informal meeting of euro area ministers in traditional format (see below).
This will be the first substantive debate on this future instrument, following the mandate given by the Heads of State or Government at the Eurozone Summit last December (see EUROPE 12160). The purpose of the January Eurogroup meeting was to examine the mandate given and set a work programme, not to go into the details of the negotiations (see EUROPE 12177).
Discussions will focus on supporting competitiveness and convergence, as requested by EU leaders in December. In a context of very marked ideological differences over the past few months (see EUROPE 12152, 12140), the stabilisation tool, initially intended by the Commission (see EUROPE 12031), has been abandoned in the mandate. However, discussions at the technical level are taking place on this point.
As with past exchanges, those of 11 February should be quite frank. They will be structured around three pillars: expenditure, the source of funds for fiscal capacity and governance. This, given that the size of this tool will not be addressed, as it will depend on the current negotiations on the post-2020 multiannual financial framework.
On expenditure, the main contributors of the Twenty-seven will discuss the legal basis and the type of instrument that could be used to support convergence and competitiveness in countries eligible for funds under this fiscal capacity (euro area countries and those participating in the ERM II exchange rate mechanism).
It will also be a question of discussing how to finance this instrument. The idea of a financial transaction tax could be raised.
On governance, Finance Ministers should discuss the role of the Eurogroup and the Eurozone Summit in decision-making. In addition, the place of non-euro area states in governance will also need to be addressed.
Philip Lane. In classic format, euro area finance ministers will discuss the candidacy of Philip Lane, the current Governor of the Irish Central Bank, for the post of Member of the Executive Board of the European Central Bank (ECB). It is the only candidate to succeed Peter Praet, Chief Economist and Member of the ECB's Executive Board, whose term of office will expire on 31 May (see EUROPE 12183, 12176).
The European Council will take a decision on this matter in March.
Post-program monitoring. The ECB and the Commission will inform the Eurogroup meeting in a standard format of the results of the post-programme monitoring missions conducted in Ireland and Portugal last November.
Economic situation in the euro zone. Finally, the ministers of the 19 will discuss the economic situation in the euro zone, a few days after the European Commission's presentation of its winter interim economic forecasts (see other news). (Original version in French by Lucas Tripoteau)