The economic crisis has prompted intense and sustained action by the EU's national governments, the European Central Bank and the Commission. All have been working closely together to support growth and employment, ensure financial stability, and put in place a better governance system for the future.
The EU and its Member States have taken a series of important decisions that will mean stronger economic and budgetary coordination for the EU as a whole and for the euro area in particular. In this way, an imbalance that has existed between the two parts of Europe's Economic and Monetary Union (EMU) is being rectified. The decisions will ensure that Member States more closely coordinate their economic policies – something the crisis has shown to be essential. As a result, the EU's interdependent economies will be better placed to chart a path to growth and job creation. It is a major step forward.
>> MEMO 11/364. EU Economic governance: a major step forward
G8 leaders assessed that the global economic recovery is gaining strength but risks remain and internal and external imbalances are still a concern. Their summit declaration also noted, among other points, that Europe for its part had adopted a broad package of measures to deal with the sovereign debt crisis faced by some euro-zone countries. Europe would “continue to address the situation with determination and to pursue rigorous fiscal consolidation alongside structural reforms to support growth”. In a separate joint statement on the summit, European Council President Van Rompuy and European Commission President Barroso said that there was “clear determination by all partners to address those issues in each region that could hamper the global recovery, which we all want to speed up”.
>> MEMO 11/353. G8 Summit in Deauville: Joint statement of European Council President Van Rompuy and European Commission President Barroso
>> G8 Declaration. G8 Summit of Deauville - May 26-27, 2011
The European Commission, on behalf of the European Union (EU), today issued a 4.75 Euro billion bond with a 5 year maturity to fund a further disbursement of the assistance package to Portugal. The proceeds will be provided as a loan under the European Financial Stabilisation Mechanism (EFSM), to be disbursed to Portugal on 1 June 2011.
>> Second €4.75 billion bond issued this week to support EU assistance packages
The European Commission, on behalf of the European Union, today issued a 4.75 billion Euro bond with a 10 year maturity to fund disbursements of the assistance packages to Ireland and Portugal. From the proceeds Ireland will receive 3 billion Euro and Portugal 1.75 billion Euro, as loan under the European Financial Stabilisation Mechanism (EFSM), the disbursements will be made on 31 May 2011 (five business days settlement).
>> €4.75 billion bond issued for EU´s assistance packages to Ireland and Portugal
The Council Implementing Decision specifies that the first disbursement of financial assistance from the EFSM shall be released subject to the entry into force of this Memorandum of Understanding on specific economic policy conditionality (MoU) and of the Loan Agreement. Before the signature of this MoU, Portugal has completed the prior actions set out in the Memorandum of Economic and Financial Policies (MEFP) and which are also included in this MoU.
>> Portugal - signed Memorandum of Understanding on Specific Economic Policy Conditionality
Following the formal request for financial assistance made on 7 April 2011 by the Portuguese authorities, the terms and conditions of the financial assistance package were agreed by the Eurogroup and the EU's Council of Economics and Finance Ministers on 17 May. The financial package will cover Portugal’s financing needs of up to €78 billion. The European Union (EU), through the use of the European Financial Stabilisation Mechanism (EFSM), and the European Financial Stability Facility (EFSF) will both provide up to €26 bn each to be disbursed over 3 years. Further support will be made available through the International Monetary Fund (IMF) for up to €26 bn.
>> EU and EFSF funding plans to provide financial assistance for Portugal and Ireland
Minister, Secretary General, Ladies and Gentlemen,It is my great pleasure to welcome you to this 12th edition of the Brussels Economic Forum. In these years, the BEF has become a key European platform for debating and shaping policy responses to the present and future challenges of the European and global economy. I am sure that this year our Forum will once again provide an excellent opportunity to exchange views among people with extensive experience and deep insights into economic analysis and policy making. The theme of this year’s Forum is timely and highly topical “Rethinking Economic Policy in Europe: a new Era for EU Economic Governance”. To set the scene for our discussion let me give you a snapshot of the European economic outlook. Where do we stand now?
>> Brussels economic Forum - Speech by Olli Rehn European Commissioner for Economic and Monetary Affairs Rethinking Economic Policy in Europe
>> The Brussels Economic Forum 2011 website
>> Economic and Financial Affairs. Videos. Clips of key note speeches
This article reports on the discussions that took place between the Irish authorities and a joint EC-ECB-IMF mission over 5-15 April 2011 in Dublin.The mission focused on a review of policy conditionality under EU/IMF financial assistance programme to Ireland up to end-March 2011, on the economic outlook for Ireland, and the policy challenges.The mission found that the economy is rebalancing away from domestic demand and towards net exports, in line with programme expectations. Barring a minor downward revision in the growth forecast for 2011 (to 0.6%, down from 0.9% at the time of the launching of the programme in late 2010), the macroeconomic framework of the programme remains appropriate.
>> Commission publishes Spring 2011 Review of Economic Adjustment Programme for Ireland
European finance ministers agreed on financial assistance to Portugal. The EU will provide loans amounting to EUR 52 billion as part of a EUR 78 billion package of financial assistance, with EUR 26 billion each granted under the European Financial Stability Mechanism (EFSM) and European Financial Stability Facility respectively, and EUR 26 billion provided by the IMF. The aid will be provided on the basis of a three-year policy programme for the period up to mid-2014, which was negotiated with the Portuguese authorities by the Commission and the IMF, in liaison with the European Central Bank. A Memorandum of Understanding was signed on 17 May between the Commission and Portugal. It opens the way for the first disbursement of financial assistance. Finance ministers also agreed on the nomination of Mario Draghi as President of the European Central Bank, to succeed Jean-Claude Trichet, whose term of office expires on 31 October. The European Council will decide on Draghi’s candidacy at its meeting in June.
>> Council conclusions
A joint European Commission, IMF and World Bank mission visited Bucharest from 27 April to 9 May, 2011. European Commission services have assessed at technical level that Romania has met the conditions for the disbursement of the final instalment of EUR 150 million. Disbursement of this last instalment would bring the assistance paid out under the programme to EUR 5 billion.
>> European Commission Staff Statement after a joint mission to Romania with the IMF and the World Bank