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Eurozone Issues

Dáil Éireann Debate, Thursday - 26 November 2020

Thursday, 26 November 2020

Questions (202)

Neale Richmond

Question:

202. Deputy Neale Richmond asked the Minister for Finance if he will report on the latest meeting of the Eurogroup; and if he will make a statement on the matter. [36652/20]

View answer

Written answers

The most recent Eurogroup meeting was held on Tuesday 3 November. Due to COVID19 related restrictions the decision was made once again to hold the Eurogroup meeting by videoconference.

The first agenda item featured a discussion on the latest health developments and their economic consequences, in view of the worrying surge in COVID-19 cases around Europe. Dr Andrea Ammon, Director of the European Centre for Disease Prevention and Control (ECDC) provided a valuable and insightful briefing to the Eurogroup.

We were reminded of the value of a coordinated European response to the pandemic and we reaffirmed our commitment to continue to provide unprecedented budgetary support. We also noted that the three safety nets agreed last April are now in place.

For information, the three safety nets are:

- The SURE instrument aims to protect jobs, and I am glad to report that support has already been granted to 17 member states. We all congratulated the Commission for its successful first issuance on the financial markets in relation to this instrument.

- The European Investment Bank (EIB) Guarantee Fund supports businesses and has been in effect since the summer; the first operations worth of €1 billion have already been approved by the EIB Board.

- The Pandemic Crisis Support instrument of the European Stability Mechanism (ESM).

The Eurogroup then moved on to a discussion on the ECB’s report on a Digital Euro. The report looks at different ways a digital euro could be designed. Ministers see this as a priority. We all agreed that a digital euro can bring benefits to European citizens, to businesses and to the European economy as a whole. But, at the same time, we are aware that the design and implementation of a digital euro pose challenges and deserve the most careful of consideration. I am therefore glad that we were able to have our first strategic discussion on the potential economic, social and political consequences that such an innovation could entail. I expect the Eurogroup to return to this topic on a regular basis.

We also had our first meeting in Banking Union format, this is a new grouping that is the consequence of Croatia and Bulgaria joining the Banking Union last July. In this composition, the Chair of Banking Supervision, Andrea Enria, and the Chair of the Single Resolution Board, Elke Koenig informed us about the latest activities of their institutions, with specific attention to their response to the pandemic. We welcomed that both institutions are applying the flexibility within their regulatory framework to soften the impact of the COVID-19 on the banking sector, with a view to supporting the recovery of the economy.

The Eurogroup in inclusive format included a debriefing on the implementation of the three safety nets and we took stock of ongoing work on liquidity in resolution.

The meeting concluded with the Eurogroup issuing a statement on COVID-19 developments. This statement can be accessed here:

https://www.consilium.europa.eu/en/press/press-releases/2020/11/03/eurogroup-statement-on-covid-19-developments-this-autumn/

EG Statement

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