Eurogroup reaches agreement on European Stability Mechanism reform

The Eurogroup agreed to proceed with the reform of the European Stability Mechanism (ESM): to sign the revised ESM treaty and to launch its ratification.

Among other things, the reform establishes a common backstop to the Single Resolution Fund (SRF) in the form of a credit line from the ESM. Ministers also agreed on the early introduction of the common backstop by the beginning of 2022.

Banking union

Ministers were informed by the Chair of the High-Level Working Group on EDIS – the European deposit insurance scheme – on progress on the further strengthening of the banking union.

Preparation of December Euro Summit

The Eurogroup prepared the Euro Summit that will take place on 11 December 2020. Eurogroup President Paschal Donohoe will report to the Euro Summit on the state of progress of the banking union.

Regular format

Greece: release of policy contingent debt measures

The Eurogroup discussed the eighth enhanced surveillance report on Greece and confirmed the release of the fourth tranche of policy-contingent debt measures.

Post-programme surveillance

The European Commission and the European Central Bank (ECB) presented the main findings of the post-programme surveillance reports on:

• Cyprus (ninth surveillance report)
• Portugal (12th surveillance report)
• Ireland (13th surveillance report)
• Spain (14th surveillance report)

Post-programme surveillance (PPS) starts automatically after the end of financial assistance programmes and continues until at least 75% of the financial assistance received has been repaid. PPS reporting follows a biannual schedule.

IMF Article IV review of the euro area

The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, presented the outcome of the IMF Article IV mission to the euro area. The Article IV review of the euro area is a regular exercise in which the IMF reviews economic developments, consults with euro area policy-makers and provides targeted policy advice.

Draft budgetary plans 2021

The Commission presented its opinions on the draft budgetary plans (DBPs) of the euro area member states for 2021 and its communication on its overall assessment of the DBPs, published on 18 November 2020. The Eurogroup held a first exchange of views on this basis.

More Information

Press release – European Commission