At a meeting of the Eurogroup in inclusive formation on 13 June, my Euro area colleagues and I agreed on a term sheet that outlines the general principles and features of a budgetary instrument for competitiveness and convergence. Its aim is to support reform and investment projects that strengthen competitiveness and convergence in the euro area. We also agreed that the size of financial envelope for the instrument would not be determined until it is discussed within the context of discussions on the financial envelope of the wider Multiannual Financial Framework.
Following this meeting, the Taoiseach, and Leaders of the other euro area Member States, participated in the Euro Summit on 21 June, as part of the European Council. The Euro Summit assessed the term sheet which had been agreed, and directed Finance Ministers to agree the remaining elements, particularly the financing, as quickly as possible. Finance Ministers have not discussed the possibility of fiscal stabilisation this year. A budgetary instrument for competitiveness and convergence was further discussed at the recent Informal Finance Ministers' Council meeting in Helsinki. Discussions are ongoing.