Jeroen Dijsselbloem

Opening address by the Eurogroup President, Paschal Donohoe, at the Dublin Economics Workshop on “Europe, Covid and the Euro”

Retrieved on: 
Tuesday, March 23, 2021
European Union, Eurozone, Council of the European Union, Economy of Europe, Economy of the European Union, Eurogroup, Multi-speed Europe, European Banking union, Economic and Financial Affairs Council, Euro, Jeroen Dijsselbloem, Eurogroup Working Group

Thank you to Ciarn for the kind introduction and to the Dublin Economics Workshop (DEW) for the invitation to speak today.

Key Points: 
  • Thank you to Ciarn for the kind introduction and to the Dublin Economics Workshop (DEW) for the invitation to speak today.
  • I know that the DEW traditionally was hosted in Kenmare, before moving around the country to the likes of Limerick, Galway and Wexford.
  • Today of course, due to COVID, we are virtually based in Dublin.
  • These virtual events have become part of the new norm as a result of how we have had to adapt to COVID-19.
  • I will do so more from my role as President of the Eurogroup rather than as Minister for Finance.
  • One of the tenets of my Presidency was built around a vision of an effective, inclusive and transparent Eurogroup.

Eurogroup - Role

  • So I hope this, ‘whistle-stop tour’ of how we operate gives you an insight into Eurogroup and its central role in economic and fiscal policy making.  All of this is of course underpinned by a very detailed workplan. We have five broad objectives:
    • Economic and fiscal policies to support recovery and long-term growth;
    • Use of banking union as a source of stability and growth;
    • Capital markets union (in terms of the euro area aspects);
    • The euro as a digital currency; and
    • The international role of the euro.
    • So to begin, I was elected President of Eurogroup last July for a two and a half year term.
    • This is somewhat different to ECOFINs more legislative role and the latter is also explicitly an EU27 body.
    • Eurogroup meetings require considerable preparation to ensure they are centred around relevant political discussions that feature a high level of engagement from Ministers and other informed experts.The sharing of experiences and perspectives plays a key role in engaging Ministers and building up understanding and consensus.
    • Every Eurogroup meeting is preceded by numerous calls to my ministerial colleagues and their teams.
    • Another key part of my role is to represent Eurogroup at the European Council.
    • I presented to our leaders back in December and will do so again later this week on the International Role of the Euro.
    • We are also fortunate in that we can expand Eurogroup, into a more inclusive format, depending on the topic at hand.

Euro area response to COVID-19

    • As an avid reader, I am very aware of recent commentary on the US fiscal response, relative to the EU.
    • However, I think it would be amiss to underestimate what the euro area and the broader EU has done.
    • Here too, the response has been extraordinary, in every sense.
    • This sent a clear and early signal to the markets that this crisis, and our response to it, would be very different.
    • More broadly, the centrepiece of the EU response to date has been Next Generation EU and the Recovery and Resilience Facility (the RRF).
    • While just over a year ago, this crisis would have been unimaginable, I think the EUs response to it has also been equally unimaginable.
    • These decisions are strengthening our crisis response mechanisms and protecting our citizens.
    • While estimates vary, last year close to 8% of GDP was spent supporting our euro area economies, with an additional 19% of GDP in various types of liquidity support.
    • Aside from obvious differences between the US and 19 euro area countries, there are inherent differences in our economies, in our social protection systems and in our longer-term objectives.

Eurogroup – budgetary policy orientation

    • At Eurogroup we have regular discussions on economic policy.
    • There was a feeling that we needed to reaffirm our economic messaging in respect of budgetary policy coordination, not just for this year but also in terms of 2022, so that Member States could prepare budgets that continue the vital economic supports to citizens and businesses.
    • Eurogroup will also issue further guidance later in the year as new data and information comes in.
    • Over the summer, we will take the economic policy conversation forward, with a particular focus on 2022.
    • To date, budgetary policy has proven to be both very effective and agile.
    • In fact, this was at the heart of the second part of the statement where we emphasised the need for budgetary policy in time to pivot towards more targeted supports.

Conclusion

    • In fact, we face a virus that uses the same qualities we rely on in Europe, to infect; our interconnectedness, our interdependence and our interconnectivity.
    • However, there is also a tremendous sense of symmetry in our response.
    • Nobody expected a shattering global pandemic but through Eurogroup and beyond we have the political processes and structures in place to support one another.
    • We have achieved an unprecedented level of coordination on economic and fiscal matters over the past year.
    • All of this is based on the clear goal of supporting citizens, businesses and countries in a time of great need.

Press contacts

Opening address by Paschal Donohoe at the Hertie School on "Coordinating Euro Area fiscal policy to drive an inclusive recovery"

Retrieved on: 
Saturday, March 20, 2021
European Union, Eurozone, Economy of the European Union, Council of the European Union, Eurogroup, European Union law, European Central Bank, Banking union, Jeroen Dijsselbloem, Eurogroup Working Group

One of the privileges of my role is the level of engagement I get with smart, impassioned people from all around our European community.

Key Points: 
  • One of the privileges of my role is the level of engagement I get with smart, impassioned people from all around our European community.
  • And as wondrous as technology is, I look forward to the day when we can meet in person.
  • Today is the first in a series of engagements I will be having, as President of the Eurogroup, with leading policy research centres around Europe, which focus on European policy.
  • Right from the outset, my candidacy for the Presidency was fundamentally based around a vision of an effective, inclusive and transparent Eurogroup.
  • I think another essential part of the President of the Eurogroup brief is to continue this kind of engagement with civic society, academia and beyond.

Eurogroup March meeting

    • I think the best place to start is to give you an insight into our Eurogroup meeting this week.
    • Our meeting on Monday started off with a discussion on a Commission paper which looked at the sectoral and structural economic challenges brought about by COVID-19.
    • Eurogroup is dealing with these issues every single month.
    • The consensus here has delivered a coordinated position that you can see encapsulated through the Eurogroup statement on the Euro Area fiscal stance that we published following the meeting.

Euro area consensus on the fiscal stance

    • There were times during the financial crisis, when countries in our community may have felt somewhat isolated or exposed.
    • I know there were times when it would be fair to say that we felt so in Ireland.
    • There was a lack of political tools and structures to tackle shocks of this scale.
    • At Eurogroup on Monday (15 March 2021) there was absolute consensus on the budgetary stance for this year and next.
    • There are a number of elements to this but the key takeaway is the unanimity on the need for supportive economic policy right across the Euro Area.
    • In May, we will take the conversation forward on the back of the Commission Spring Economic Forecasts and further reflect on medium-term fiscal rebalancing strategies.
    • In June we will look to deliver a mid-term review of the budgetary situation and fiscal plans, before returning to the fiscal stance in July with a particular focus on 2022.
    • A feature of our economic discussions to date is that we built them on the back of consensus and engagement.

The role of Eurogroup

    • The raison d'tre of the Eurogroup is achieving consensus through its focus on political and strategic discussions.
    • My emphasis as President has been to ensure Eurogroup meetings are centred around relevant political discussions, which feature a high level of engagement from Ministers.
    • The sharing of experiences and perspectives plays a key role in engaging Ministers and building up consensus.
    • Every Eurogroup meeting is preceded by many calls to my ministerial colleagues and their teams.
    • Within the Eurogroup such stability is not just a starting point, it is a foundation that I work to sustain.

Support in time of greatest need

    • In addition, the three European safety nets - SURE to mitigate unemployment risks, the EIB Pan European Guarantee Fund, and the ESM Pandemic Crisis Support, agreed in Eurogroup inclusive - complemented national responses.
    • While a year ago, this crisis would have been unimaginable, I equally think the EU response has also been unimaginable.
    • Aside from budgetary measures, the other major economic policy lever we have is monetary policy.
    • The series of decisions and actions from the European Central Bank have preserved favourable conditions for all sectors of the economy.
    • In fact, I have a duty to report to our leaders next June on how we will make further tangible progress.
    • Sometimes, I think we also need to take a step back and to reflect what has been achieved and what is being donein real time, returning to that phrase from earlier.
    • The reality is that Eurogroup and the structures around it have performed during this crisis.

Conclusion

    • Within Eurogroup we will intensify our coordinating efforts and build on our recent success with Banking Union to identify further areas of progress.
    • I believe that the value of political effort is particularly clear when we are confronting uncertainty on behalf of our citizens.
    • Where she would make the case for art, I make the case for politics and for the politics of the European Union.
    • Of course it can and that is why I will continue to pursue the objectives in my work plan with zeal and determination.
    • We need to continue building on the momentum, coordination and innovation shown to date in this crisis.

Opening remarks by Paschal Donohoe at the European Parliament's ECON Committee, 25 January 2021

Retrieved on: 
Tuesday, January 26, 2021
European Union, Eurozone, Europe, Economy of the European Union, Multi-speed Europe, Eurogroup, Banking union, Euro, Single Resolution Mechanism, Economic and Monetary Union of the European Union, Jeroen Dijsselbloem

This is my first appearance as President of the Eurogroup before your Committee and it is an honour to be here.

Key Points: 
  • This is my first appearance as President of the Eurogroup before your Committee and it is an honour to be here.
  • The Eurogroup also exchanged views on the economic situation with ECON Committee Chair Tinagli at its meeting in early-November 2020.
  • Thank you again, Madam Chair for sharing the European Parliament's views with us in that discussion.
  • Your views were very well made and I can assure you that Eurogroup members are focused on how we can drive an inclusive recovery.
  • The European Parliament and the Eurogroup have a common interest in a well-functioning Economic and Monetary Union (EMU).
  • European institutions and member states reacted swiftly to mitigate the socio-economic fallout of the Covid-19 crisis.

Economic situation and policy priorities

    • Let me now say a few words on the economic situation.
    • The global pandemic triggered an unprecedented economic contraction in 2020.
    • The resurgence of infections - including the emergence of even more contagious virus mutations - and the return to the stricter containment measures are expected to weigh on economic activity in 2021.
    • At the same time, compared to 2020, the economic outlook has improved.

Fiscal policies

    • I believe it important that finance ministers debate and reach a common understanding on the appropriate fiscal stance by the summer.
    • To avoid any misunderstanding, let me stress that this is not about an imminent withdrawal of fiscal stimulus.
    • In relation specifically to the overall fiscal framework and the rules, these will be key considerations later in the year.
    • As we make progress in overcoming the health crisis, the focus of fiscal policy should gradually shift from emergency support to supporting public investment and reforms that raise potential growth.
    • We need to coordinate our efforts for sound fiscal plans for the future so that when the time comes to adjust, we are prepared.

Macroeconomic imbalances

    • We also need to be mindful of the fact that the Covid-19 crisis is not only increasing the levels of public indebtedness, but is also exacerbating other pre-existing macroeconomic imbalances and creating new risks.
    • There is also a risk that income and productivity growth will remain weak for a rather long period.
    • Addressing imbalances is particularly important for those countries that were already facing challenges in these areas already before the current crisis, notwithstanding their remarkable and effective efforts over the past years.
    • It is appreciated that imbalances need to be tackled through an array of actions across policy domains.

Recovery and Resilience / Euro area Recommendations

    • This is not only in countries individual interest, but in the interest of the euro area as a whole, as widening economic divergences between the euro area countries would hamper the smooth functioning of the currency union.
    • For this reason, it is so important that the euro area countries incorporate the euro area dimension in their RRPs.
    • The Eurogroup will review how euro area member states implement the euro area recommendations through their RRPs.
    • It also reflects the determination of euro area finance ministers to coordinate national recovery efforts including in the context of the RRF.
    • Our objective is to ensure that the positive impact of the RRF on the euro area exceeds the sum of the positive impacts for individual euro area member states.

Strengthening EMU: ESM reform and SRF backstop

    • It also requires us to strengthen the institutional framework of the Economic and Monetary Union.
    • At the end of last year, we reached an agreement on the reform of the European Stability Mechanism.
    • Importantly, the Eurogroup agreed that the common backstop could be introduced earlier that is, ahead of 1 January 2024, by which time the SRF will be fully built up with financial contributions from the banking sector.
    • The ESM's new features including the common backstop to the Single Resolution Fund, should be operational as of 2022, following the completion of national ratification processes.
    • This, together with a generally more effective and flexible ESM will boost confidence in the euro areas ability to quell crises before they escalate.

Completing the banking union

    • I have the firm intention to capitalise on the cooperative spirit that prevailed throughout 2020 to make good progress on the completion of the banking union.
    • The current crisis clearly demonstrates how much a fully-fledged banking union is needed.
    • Completing it should be part of our effort to ensure sustainable recovery.
    • Of course, the experience of the last few years and even over the last few months - has shown that completing the banking union is anything but straightforward.
    • At the Euro Summit last month, leaders asked the Eurogroup to produce a stepwise and time-bound work plan on all outstanding elements needed to complete the banking union.

Digital euro

    • The Eurogroup is also following, with great interest, developments in digital finance and how these could impact the euro area economies.
    • This concerns the Commissions work on digital finance, and in particular the ECBs work on a possible digital euro.
    • I am therefore convinced that euro area member states are key stakeholders in this project.

International role of the euro

    • The issue of sovereignty brings me to my final point: the international role of the euro.
    • I welcome the Commission Communication outlining different initiatives to promote a stronger role of the euro on the international scene.
    • A stronger international role of the euro is good for Europe and for the global economy.

Concluding remarks


    I would like to conclude on this optimistic note and reassure you of the Eurogroup's resolve to do all we can to deliver a strong, inclusive, and lasting recovery. Coordination of economic policies is more important than ever before. Our economies can only grow out of this crisis if we continue supporting each other and working together. This is what I am relentlessly working towards.

Remarks by Paschal Donohoe following the Eurogroup video conference of 30 November 2020

Retrieved on: 
Tuesday, December 1, 2020
European Union, Eurozone, Economy of the European Union, Multi-speed Europe, International finance institutions, Europe, Eurogroup, International Monetary Fund, Kristalina Georgieva, Georgieva, Jeroen Dijsselbloem, European Stability Mechanism

We will now proceed to the signature of the Treaty in January and launch the procedures for ratification at national level.

Key Points: 
  • We will now proceed to the signature of the Treaty in January and launch the procedures for ratification at national level.
  • The Treaty reform also establishes a common backstop to the Single Resolution Fund in the form of a credit line from the ESM.
  • I want to say a word about the regular Eurogroup agenda where we welcomed the managing director of the IMF, Kristalina Georgieva.
  • We have now released a statement based on the commendable hard work and good results for Greece and for the euro area.

Eurogroup Work programme until June 2021

Retrieved on: 
Tuesday, October 6, 2020
European Union, Eurozone, Economy of the European Union, Council of the European Union, Eurogroup, Banking union, Eurogroup Working Group, Jeroen Dijsselbloem

In response, the European Union and its member states have taken equally unprecedented steps to mitigate the impact of the crisis.

Key Points: 
  • In response, the European Union and its member states have taken equally unprecedented steps to mitigate the impact of the crisis.
  • The Eurogroup was at the forefront of the early economic policy response and it will continue to play a key role in assisting citizens, businesses and member states to recover from the impacts of the pandemic.
  • The Eurogroup in inclusive format agreed EUR 540bn worth of safety nets to assist member states address the immediate challenges faced.
  • The Eurogroup looks forward to working in an open and collaborative way with all parties to ensure the euro area emerges strongly from the crisis.
  • It will work closely with the EU Institutions and the Council Presidency to achieve its policy priorities.

The Eurogroup’s priority policy areas

    • The Eurogroup will continue to lead the euro area economy towards an inclusive recovery that benefits all citizens by focusing its work on a number of priority policy areas: Economic and fiscal policies to support recovery and long-term growth.
    • Implementing effective, sustainable policies in a concerted manner to stabilize the economy and support the recovery requires intense policy dialogue and co-ordination.
    • Next Generation EU, including its emphasis on green and digital agendas, will be a key element in supporting member states recovery.
    • The Eurogroup will seek to align reform with the goals of a green transition and a digital future.
    • Similarly, the euro area Recommendations will provide the conduit for the Eurogroup to formulate its policy views and to support a coherent policy mix across a broad range of economic and fiscal policies, which is all the more relevant in the context of the recovery.
    • The Eurogroup has agreed that completing the Banking Union is a priority and it has recognized the necessity of taking Banking Union forward in a holistic manner and on a consensual basis.
    • Ministers will also make progress with the issue of liquidity in resolution and as a matter of priority will look into some specific aspects of the crisis management framework.
    • Equally important, the Eurogroup will monitor the plans and actions related to the introduction of the euro in the member states with a derogation.

Media advisory - Press briefings ahead of the Eurogroup and Ecofin video conferences of 9 and 10 July 2020

Retrieved on: 
Saturday, July 4, 2020
Council of the European Union, European Union, Eurogroup, Eurozone, Economy of the European Union, Economic and Financial Affairs Council, Ministry of the Economy and Finance, Jeroen Dijsselbloem

The press briefings ahead of the Eurogroup of 9 July 2020 and the video conference of economic and finance ministers of 10 July 2020 will take place on Tuesday, 7 July 2020:

Key Points: 
  • The press briefings ahead of the Eurogroup of 9 July 2020 and the video conference of economic and finance ministers of 10 July 2020 will take place on Tuesday, 7 July 2020:

    These briefings will be virtual and "off the record".

  • In order to ask questions remotely, EU accredited journalists can register usingthis link.
  • Journalists who already registered for previous Eurogroup/ECOFIN press conferences do not need to register again.
  • For more information, visit the video conference pages:

    Eurogroup of 9 July 2020

    Video conferences of economics and finance ministers of 10 July 2020

Eurogroup presidency: three ministers put forward their candidacies

Retrieved on: 
Friday, June 26, 2020
European Union, Eurogroup, Eurozone, Economy of the European Union, Council of the European Union, Multi-speed Europe, Jeroen Dijsselbloem

Three ministers have put forward their candidacy to become president of the Eurogroup:

Key Points: 
  • Three ministers have put forward their candidacy to become president of the Eurogroup:

    The election of the new president will take place at the next Eurogroup, on 9 July.

  • The President is elected by a simple majority (at least 10 votes) of the Eurogroup ministers, in line with the Treaty's Protocol 14 on the Eurogroup.
  • The winner will be announced to the ministers at the end of the vote and presented at the Eurogroup press conference at the end of the meeting.
  • The Eurogroup is an informal body where ministers of euro area member states discuss matters of common concern in relation to sharing the euro as the single currency.

Luis de Guindos: Interview with Radio Nacional

Retrieved on: 
Thursday, March 19, 2020
European Union, Europe, Multi-speed Europe, Economy of the European Union, Luis de Guindos, President of the European Central Bank, European Central Bank, Christine Lagarde, Eurogroup, Eurozone, European Stability Mechanism, Jeroen Dijsselbloem

Thank you very much for being with us during these very challenging times for our country, and for Europe in general.

Key Points: 
  • Thank you very much for being with us during these very challenging times for our country, and for Europe in general.
  • You were one of the government ministers who had to deal with the long economic crisis that began in 2008.
  • Is there a risk that it could be as damaging as the Great Recession?
  • We are experiencing a health crisis, a pandemic, which will obviously have a significant impact on economic activity.
  • But the key difference is that we expect this to be temporary.
  • Were talking about the current situation lasting for weeks or months, not longer.
  • Christine Lagarde, the ECB President, is calling on governments to take action to avoid this apocalyptic scenario.
  • So yes, I think that measures have been taken at the national level.
  • For example, I think having a single fiscal instrument for the euro area would have been crucial.
  • On Monday, for example, the Eurogroup considered the possibility of the European Stability Mechanism (ESM) acting jointly for all European countries.
  • This European Stability Mechanism is a governance tool that came out of the previous crisis.
  • I think that the ECB President Christine Lagarde has made it clear that we will do what needs to be done.
  • Luis de Guindos, Vice-President of the European Central Bank, thank you very much for speaking to us.
  • Its not ideal, but clearly in these circumstances its the only option available and it works relatively well.
  • Luis de Guindos, Vice-President of the European Central Bank, thank you very much for speaking with us.