The finance ministers of the euro area and then the Twenty-Seven (all except the UK minister) will discuss, on Monday 8 July, at the Eurogroup meeting, the third enhance surveillance report for Greece, the eurozone fiscal stance, the Italian budgetary situation and the deepening of the Economic and Monetary Union (EMU).
This meeting of the Eurogroup is expected to be much less intense than the meeting last 13 and 14 June (see EUROPE 12275/1), which, ahead of the Euro Summit on 21 June (see EUROPE 12280/1), had presented the results of the ministerial work on deepening the Economic and Monetary Union.
The Eurogroup will first consider the third enhanced surveillance report for Greece, which was put forward by the Commission last 5 June (see EUROPE 12269/2). This pointed to the need for Athens to continue on the path of socio-economic reforms and to stay on track on the fiscal front, in order to achieve a primary budget surplus (excluding debt service) of 3.5% of GDP this year and in the years to come. This debate will be all the more interesting as the parliamentary elections will have taken place the day before.
Similarly, a discussion on post-programme monitoring for Spain is planned as part of the eleventh follow-up mission conducted in May.
Fiscal stance. The next exchange will focus on the eurozone fiscal stance, in particular for 2020. In light of this, the President of the European Fiscal Board, Niels Thygesen, will present this body’s report from 25 June, calling for a neutral fiscal stance for next year (see EUROPE 12282/18). The Commission will also present its assessments, in particular, on the basis of its Spring Economic Forecasts (see EUROPE 12249/6).
Euro. Afterwards, the major euro area policy makers will focus on the International role of the Euro. They will be informed of the results of the Commission's sectoral consultations in this context (see EUROPE 12178/39), conducted in response to the communication on this subject of last December (see EUROPE 12153/16).
ITALY. The European Commission will furthermore state its decision to not recommend to the Council of the European Union to open an excessive deficit procedure based on debt criteria against Rome (see EUROPE 12188/10). This is the result of bilateral discussions and promises by Giuseppe Conte's government to make efforts on the fiscal front, both nominal and structural, to meet its commitments.
EMU. Finally, in an inclusive format, meaning at Twenty-Seven, EU finance ministers will discuss the deepening of EMU. This exchange will be the first following the June Euro Summit.
Here, the monetary policy makers will not be discussing the content of various outstanding issues, but rather the organisation of work during the next semester.
It is recalled that, while the June Eurogroup reached agreement on what the future fiscal capacity for the euro area will finance, issues relating to the size, financing and governance of this tool still need to be resolved.
With regard to the reform of the statutes of the European Stability Mechanism (ESM), the permanent rescue fund for the euro area, although ministers have reached agreement on the revision of the treaties, the guidelines surrounding the ESM must be rewritten before the ratification process by the Member States can begin, starting in December of this year. (Original version in French by Lucas Tripoteau)