Brussels, 13 May 2024
In regular format:
Macroeconomic and budgetary situation and developments, including a briefing from the international meetings
The Eurogroup president and the institutions provided their assessment of the latest macroeconomic developments and outlook, including a debrief on recent international meetings. The Commission shared its views on recent budgetary developments in the euro area.
Miscellaneous
Policy priorities of the new government of Portugal
The Portuguese Minister for Finance presented the economic and financial policy priorities of the new government of Portugal.
In banking union format
Reporting on banking union
Ministers heard the biannual reporting of the Chairs of the Single Supervisory Mechanism and the Single Resolution Board.
They discussed the current status and upcoming challenges of the euro area banking system, as well as what remains to be done to bolster its resilience.
The efforts taken to protect the stability of the banking sector have worked. However, the challenges of tomorrow are not always the same as those of today or yesterday. In that light, we acknowledged the importance of cybersecurity and climate action with regard to the financial sector.
Paschal Donohoe, President of the Eurogroup
- Bi annual reporting note to Eurogroup, May 2024 (Single Resolution Board)
- Written overview ahead of the exchange of views of the Chair of the Supervisory Board of the European Central Bank (European Central Bank)
- Banking union (background information)
In inclusive format
Euro area competitiveness: closing the innovation and productivity gap
Building on an analysis of the Commission and a presentation by Michiel Scheffer, the President of the Board of the European Innovation Council, ministers discussed the gaps in innovation, R&D spending and human capital, which Europe is facing compared to key global competitors.
Ministers highlighted the need to strengthen investments in research and development, the importance of education and the steps that need to be taken with regard to taxation, reducing levels of administration, and how we regulate the single market – all of which will overtime make the a EU better place to innovate.
Paschal Donohoe, President of the Eurogroup
They also discussed the necessary policy responses from a macro-structural and macro-fiscal perspective going forward.
Stocktaking on the capital markets union
Ministers followed up on the March Eurogroup statement on the future of the capital markets union and discussed ways to advance and track progress. They agreed on the main elements of a high-level work programme for the months to come.
It is now all about how we can move to action at national level and how we can provide guidance to the next Commission regarding the actions they can take. We all want to find ways in which we can maintain the momentum and build the urgency to make progress.
Paschal Donohoe, President of the Eurogroup
Ministers took the opportunity to discuss the recommendations for developing European capital markets put forward by the French task force led by Christian Noyer, who presented his report. Ministers exchanged further on ongoing national initiatives and the Commission shared initial thoughts on aspects of the Eurogroup statement that require initiatives from the Commission.
- Statement of the Eurogroup in inclusive format on the future of capital markets union (press release, 11 March 2024)
- European capital markets (background information)
- What the EU is doing to deepen its capital markets (background information)
Preparatory documents
- Draft agenda, Eurogroup
- Draft agenda, Eurogroup in inclusive format
- Draft annotated agenda, Eurogroup
- Draft annotated agenda, Eurogroup in inclusive format
Outcome documents
Press releases
Remarks by Paschal Donohoe following the Eurogroup meeting of 13 May 2024
Good evening, everybody. We have just paused our Eurogroup meeting, because we are going to have an informal discussion over dinner on work with regard to the development of capital markets. But before we get to that I just wanted to give you a debrief on the discussion that has taken place in the Eurogroup so far today.
We began with our normal discussion on macroeconomic and budgetary developments in the euro area. The discussion reflected the urgency that many ministers feel regarding what future efforts we can take to further improve the ability of the euro area to grow. We all acknowledged the success in reducing inflation and many ministers commented on what further policy decisions need to be taken to grow even faster in the future.
That set the scene for the discussion on the Banking Union, where we received a very good update from the Chairs of the Single Resolution Mechanism and the Single Supervisory Mechanism. They informed us that the efforts taken to protect the stability of our financial and banking sector have worked. However, the challenges of tomorrow are not always the same as the challenges of today or yesterday. In that light, the Chairs reminded us of the importance of cybersecurity and of the impact that climate change can have on the stability of the financial sector.
We looked at the work underway on the crisis management framework – the Belgian presidency gave us a very good update on where that file stands – and we came back to the steps that need to be taken to increase the scale of the Single Resolution Fund and the huge importance of the relationship between that and the ESM. We emphasised again the importance of the ratification of the ESM Treaty.
From this we went on to a discussion on competitiveness. This was a very broad ranging discussion, informed by a fantastic note from the Commission, which laid out where we stand on many indicators of competitiveness today. It noted things that are going well for the future and a number of things that are not going so well. Michiel Scheffer, the President of the Board of the European Innovation Council, gave us his perspective, in particular on the relationship between SMEs here in Europe and innovation. He focussed on what further steps can be taken to support the innovation of small and medium-sized companies in the EU, which he said we should see as a source of competitive advantage.
Ministers then came in. The topics they covered included the need to strengthen private sector investment in R&D, which is relevant to the discussion that we’re about to have on capital markets union. They mentioned the importance of education, and where we stand with regard to PISA tests that are conducted by the OECD. Finally ministers touched upon the steps that can be taken with regard to taxation, reducing levels of administrative burden and how we regulate the single market, all of which may, over time, make the EU an even better place to innovate.
After this, we are going to be having a discussion over dinner on the Capital Markets Union (CMU). We are going to look at the political agreement that we made on the CMU a few weeks ago. The discussion is now all about how we can move to action at national level and how we can provide guidance to the next Commission regarding actions that they can take at EU level. We are all aware of the endorsement that this work received at the Euro Summit and the subsequent discussion in the European Council. Now we all want to maintain the momentum and build the urgency to make progress.
We will receive an update from Christian Noyer on the work that is underway in France. We will welcome Commissioner Mairead McGuinness to this discussion. Finally, I will be looking to have an agreement from all ministers on a work programme, which is about implementation, action and turning our statement into reality. Thank you.