The finance ministers of the euro zone, and then of the European Union, will discuss the situation in Greece after the rescue plan, the fiscal capacity for the euro zone and the completion of the banking union in the euro zone through the creation of a European Deposit Insurance Scheme (EDIS) on Friday 5 April in Bucharest at the Eurogroup meeting.
Greece. In classic format, ministers will discuss the possible disbursement of a further €1 billion tranche of aid in Athens.
A discussion on this subject had already taken place in March (see EUROPE 12210/15) on the basis of the European Commission's second report under the enhanced surveillance to which Athens has been subject since the end of its financial guardianship in August 2018 (see EUROPE 12203/1, 12077/1). The payment of the aid tranche could not then be recorded (see EUROPE 12211/14).
This tranche corresponds to the profits made by the European Central Bank (ECB) and the national central banks on the SMP and ANFA operations to repurchase Greek public debt during the sovereign debt crisis, as well as the abolition of interest rate margins on debt repurchase tranches.
Action by the Greek authorities was expected, but not all of it had been taken by the end of last week. The question of the implementation of a new system of principal residence was the central issue.
On Friday, if representatives of Athens' institutional creditors acknowledge that the necessary measures have been put in place, the Eurogroup may decide to give the green light for the disbursement of this tranche of aid.
Banking Union and EMU. Also in classic format, the President of the ECB's Single Supervisory Board, Andrea Enria, will present the work in progress in this body, in particular on non-performing loans, anti-money laundering and preparations for Brexit. Elke König, President of the Single Resolution Fund (SRB), will also inform ministers of the entity's activities.
Roberto Gualtieri, Chairman of the European Parliament's Economic and Monetary Affairs Committee, will also discuss the economic situation and challenges of the euro zone with the participants in this meeting.
Luxembourg budget. The Eurogroup is also expected to approve the Commission's analysis in the light of the Grand Duchy's revised draft budget for 2019. At the end of March, the Commission considered that this revised draft budget was fully compatible with the rules of the preventive arm of the Stability and Growth Pact (see EUROPE 12221/24).
In a classic format, the major eurozone financiers will prepare the spring meetings of the International Monetary Fund (IMF), taking note of recent exchange rates and inflation rates.
Fiscal capacity for the euro area. Twenty-seven ministers (all except the British Minister) will discuss the governance of the future fiscal capacity for the euro area.
This debate is part of the mandate given at the end of 2018 by the Eurozone Summit, which asked the Eurogroup to prepare, by June, a detailed proposal for fiscal capacity to support convergence and competitiveness within the eurozone (see EUROPE 12160/1).
An exchange has already taken place on the expenditure side of this future tool in March (see EUROPE 12212/10), and this meeting therefore aims to focus on the governance aspect. In May, a discussion will take place on how to finance this instrument.
The Franco-German contribution in February should be one of the bases for discussion between ministers (see EUROPE 12200/8).
The main issues relate to the incorporation of this fiscal capacity into European Union law and the decision-making procedure. Thus, some States, in particular France, want decisions to be taken by euro area Member States or even those participating in the Exchange Rate Mechanism (ERM) II. States that have not adopted the common currency would also like to have a say in the mobilisation of future fiscal capacity.
While decisions could be taken on the basis of an intergovernmental agreement, it would then be necessary to define to what extent Union law would apply. It could, for example, be the case that decisions are formally taken in the EU Council only by States participating in this tool.
In addition, the recommendations on the euro area and country by country could be the starting point for decisions on financial support.
However, no decision is expected on Friday, the aim being to agree on a proposal in June.
EDIS. Finally, the major funders of the Twenty-Seven will take stock of the discussions in the high-level working group on EDIS.
This working group was set up at the beginning of the year to broaden the discussions on this sensitive issue, which were dragging on (see EUROPE 12177/3). However, it would appear that little progress has been made at this stage. (Original version in French by Lucas Tripoteau)