The finance ministers of the euro area countries will hold an exchange of views on transatlantic economic relations on Monday 16 October in Luxembourg, in the presence of Janet Yellen, US Secretary of the Treasury.
This dialogue, which is held on a regular basis, will focus on issues of common interest such as the macroeconomic situation, economic competition with China and macrofinancial support for Ukraine, according to a European diplomatic source speaking on Tuesday 10 October.
At the beginning of October, the European Commission launched its anti-dumping investigation into the production of electric vehicles in China. And, according to the Financial Times, the EU could announce a similar move on Chinese steel ahead of the EU-US summit in Washington on Friday 20 October (see EUROPE 13259/9).
On Ukraine, the Europeans will potentially want to know more about how the United States intends to continue providing financial support to Kyiv following the US government’s recent setback in budget negotiations. They are currently working on an EU contribution of €50 billion for 2024-2027.
Digital euro. The Eurogroup will also take stock of progress on the digital euro project.
At the end of June, the Commission submitted a legislative proposal to provide the digital euro project with a legislative framework (see EUROPE 13211/11) and a proposal to grant legal tender status to euro notes and coins (EUROPE 13211/12). These proposals are currently being examined at a technical level by the Council of the EU, while the European Parliament has appointed Stefan Berger (EPP, German) as its rapporteur.
According to this European diplomat, this highly political project is now better understood.
Leading the way on the digital euro, the European Central Bank (ECB) has carried out technical work as part of an investigation phase, the results of which could be presented on Wednesday 18 October. The decision to launch the development phase is its sole responsibility. At the Eurogroup meeting, the ECB will present an overview of this second phase.
This phase, which could last 3 years, would include the development and testing of appropriate technical solutions as well as the commercial arrangements needed to deliver a digital euro. It is only at the end of this phase and after the conclusion of the co-decision legislative procedure, which is being conducted in parallel, that the ECB Governing Council will decide whether or not to issue a digital euro.
CMU. The Eurogroup will hold an exchange of views on the Capital Markets Union (CMU) project, described as a priority by the Euro Summit. On Monday, it will be discussing with industry representatives the factors that make it easier to raise private capital.
The aim is to consider medium-term measures to stimulate the integration of capital markets. These measures will be compiled in a roadmap to be drawn up in spring 2024 by the President of the Eurogroup, Paschal Donohoe.
In Hamburg, on Tuesday, at the end of a Franco-German intergovernmental seminar, French President Emmanuel Macron expressed the desire of Berlin and Paris to give “a boost” to the CMU project, which will enable “a more efficient Europe in terms of private funding”.
The Eurogroup will also be preparing the Euro Summit, which will take place on Friday 27 October in Brussels.
RRF. In a non-inclusive format, the ministers will discuss the euro area dimension of the Recovery and Resilience Facility (RRF), the financial arm of the Next Generation EU Recovery Plan. The aim is to analyse the extent to which the socio-economic policy recommendations for the euro area have been taken on board. In this respect, the Commission could give some indication of future recommendations.
On Monday, the Eurogroup will not be taking stock of the ratification of the reform of the European Stability Mechanism (ESM), the euro area’s permanent rescue fund. Italy is the only country missing (see EUROPE 13251/11). (Original version in French by Mathieu Bion and Émilie Vanderhulst)