Liège, 21/09/2001 (Agence Europe) - The EU Finance Ministers were meeting late on Friday afternoon in Liège at the enlarged Eurogroup meeting (with the addition of the UK, Sweden and Denmark) to take stock of the European economy after the attacks in the United States, while European trade unions were demonstrating in the streets outside (see below).
Didier Reynders, Eurogroup President, told journalists before the meeting that the economic prospects for Europe were "less favourable" following the 11 September events. He said that the meeting would deliver the Finance Ministers' message to the European Summit, the markets and the general public. Various Ministers wanted to raise the possibility of using "economic stabilisers" which authorise, in specific circumstances, exceeding the budget deficit ceiling imposed by the Treaty on members of the eurozone. The European Commission recently ruled out this option, however, as did the BCE in its latest monthly bulletin (see yesterday's EUROPE, p.10).
Before a wider debate at the ECOFIN Council on Saturday, the Commission was expected to present an assessment of the economic situation, analysing developments in the specific sectors of energy and transport. Although it has ruled out for the moment any revision of the state aid regime for transport (see yesterday's EUROPE, p.11), the Commission appeared to be under some pressure to "do something". The Dutch Finance Minister, Gerrit Zalm, told journalists that they would be seeking a European approach. Didier Reynders explained that it was still too early to say what the EU could do for European airlines since it would be necessary to wait to see what the United States was going to do for US airlines. Light should be shed on the situation at the 14 October Transport Council, on the basis of reports by groups of experts on air transport security and the working group with the airlines, explained Commission sources.