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.
I have been unequivocal that the European Commission will stand by Greece. I am here as a friend of Greece. I have repeatedly stated that Greece can make it, together Greece and Europe will make it. Greece is part of the European family and the euro area and we intend to keep it that way.
European Commission officials, International Monetary Fund staff and observers from the ECB, conducted a joint mission to Hungary from 17 to 25 July. It held a useful first exchange of views on recent developments and policy initiatives and on policies that the EU and the IMF could support under a possible precautionary programme, also with a view to Country Specific Recommendations issued under the European Semester in July.
The Eurogroup agreed that the Fund for Orderly Bank Restructuring (F.R.O.B.), acting as agent of the Spanish government, will receive the funds and channel them to the financial institutions concerned. The Spanish government will retain full responsibility for the financial assistance.
Today's unanimous endorsement by the Eurogroup of the sectoral programme for Spain opens the way to the necessary recapitalisation and repair of the country's financial sector. The aim of this programme is very clear: to provide Spain with healthy, effectively regulated and rigorously supervised banks, capable of nurturing sustainable economic growth.
>> Memorandum of Understanding on Financial-Sector Policy Conditionality
Initiative sees renewed deleveraging in Q2; is set to discuss cross-border supervisory practices in September
Staff from the European Commission, the ECB and the IMF met the Portuguese authorities in Lisbon between 22 May and 4 June. Their report found that:
Staff teams from the European Commission (EC), European Central Bank (ECB), and International Monetary Fund (IMF) visited Dublin during 3-12 July for the seventh review of the government’s economic programme. Ireland’s policy implementation remains on track despite challenging macroeconomic conditions.
The Council today issued a revised recommendation on measures to be taken by Spain to correct its government deficit, giving it an extra year to do so on account of adverse economic circumstances.
The Council today issued recommendations to all 27 member states on the economic policies set out in their national reform programmes, and opinions on the fiscal policies presented in their stability and convergence programmes (11296/3/12 REV 3).
The statement covers the use of the EFSF and ESM, and updates on the programme countries
The meeting includes:
Monetary dialogue with Mario Draghi, President of the ECB
Discussion with Michel Barnier, Commission for Internal Market and Services
Economic dialogue on Cyprus' Country Specific Recommendations, with Vassos Shiarly, Cypriot finance minister
agenda background documents
"I would like to begin by thanking President Christofias for the very warm welcome he and his government have extended to the Commission, only three days after the President and I met at the European Parliament in Strasbourg. We are all delighted, myself and my colleagues from the Commission, to be here in Cyprus enjoying the great Cypriot hospitality! I would like also to thank you for your extremely kind words. They are additional evidence of our friendship, something that I very much value."
The Eurogroup meeting will start on Monday, 9 July at 17.00. The European Commission will be represented by Olli Rehn, Vice-President and Commissioner for Economic and Monetary Affairs and the Euro. A press conference is expected to take place after the meeting.
President Barroso and Vice-President Rehn have welcomed today's European Parliament vote on the European Commission proposal for a Project Bonds Initiative.