European Council published Eurogroup work program until June 2021. The work program builds on certain key priority areas including strengthening the Banking Union and policies to support recovery and long-term growth. The Eurogroup will continue to monitor the economic situation, policy response, and recovery needs after the COVID-19 pandemic. Given the current uncertain environment, the Eurogroup work program should be seen as indicative.
The recent crisis has shown that a well-functioning financial sector and a resilient Banking Union are key to financing the recovery for households and businesses. 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. In the coming months, the Finance Ministers will focus on finalizing the agreement on the European Stability Mechanism (ESM) Treaty as well as on the early introduction of the common backstop to the Single Resolution Fund (SRF) on the basis of the forthcoming risk-reduction assessment by the EU institutions. Ministers will also make progress with the issue of liquidity in resolution and as a matter of priority will look into specific aspects of the crisis management framework.
The objectives of Capital Markets Union to support the financing of the economy and to strengthen market-based adjustment mechanisms in the euro area also merit consideration at Eurogroup. The Capital Markets Union can complement Banking Union and provide an alternative to bank-intermediated finance. In light of the impact of the current crisis, achieving these objectives is critical and will be fully supported by the Eurogroup. Next Generation EU, including its emphasis on green and digital agenda, will be a key element in supporting the recovery of member states. The Eurogroup will play an important role in fostering consistency and coherence between national policies, the use of the new EU financing tools, and euro area priorities. The Eurogroup will seek to align reform with the goals of a green transition and a digital future. The Eurogroup will continue to discuss policies that address longer-term challenges, such as higher and targeted investment in the green and digital transitions, and structural reforms to support growth potential, with a view to fostering mutual learning and spreading best practices.
Keywords: Europe, EU, Banking, Securities, Banking Union, Capital Markets Union, COVID-19, SRF Backstop, Eurogroup, Work Program, Work Program, Resolution Council, ESG, European Council
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