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Latvia formally asks to join euro from 2014
Latvia has formally asked to join the euro from 1 January 2014. On 5 March, the country formally asked the Commission to deliver an extraordinary convergence report that will assess whether the country has achieved the five convergence criteria for joining the euro that are defined in the Maastricht Treaty. The criteria include a qualitative assessment of the structural sustainability of public finances in Latvia. Thanks to determined implementation of the financial assistance programme led by the EU and the International Monetary Fund (IMF), Latvia has managed to steer its way clear of the very deep recession it had in 2008 and 2009. The country now has the fastest rate of GDP growth and the second highest rate of export growth in the EU, and a steadily falling unemployment rate. In line with Treaty requirements, the Commission and the European Central Bank (ECB) will independently assess Latvia’s readiness to join the euro area. The conclusions will be presented by early June.
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…Latvia’s request is another sign of confidence in the euro.
Olli Rehn, Commission Vice-President for Economic and Monetary Affairs and the Euro. |
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European leaders discuss efforts to restore growth and jobs
At a meeting of the European Council on 14-15 March, EU leaders are scheduled to conclude the first phase of the 2013 European Semester and call for the rapid submission of Member States’ National Reform Programmes and Stability and Convergence Programmes in line with the priorities and actions of the 2013 Annual Growth Survey. They will also call for continued implementation of the Compact for Growth and Jobs, for rapid progress in developing the Single Market and for more efforts to advance on the implementation of Europe 2020 flagship initiatives, in particular as regards new skills and jobs. When they meet in June, the leaders will assess the policies being defined at the national level to implement these priorities, and decide on concrete measures and a time-bound roadmap for deepening the Economic and Monetary Union (EMU). Over the coming months, they will continue to discuss specific themes carrying a high potential to deliver growth and jobs.
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European Commission opens competition for economists
The European Commission officially opened a competition for economists on 14 March. The Commission is looking for talented economists specialised in financial economics or macroeconomics. Candidates should have at least six years of professional experience and a strong academic background in either of the two fields. The economists would work primarily within the Economic and Financial Affairs or Internal Market Directorates of the European Commission. They would have the opportunity not only to help safeguard financial stability for 500 million citizens, but also to take part in shaping Europe’s economic future. The deadline for applications is 16 April 2013 at 12.00 (CET).
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EU finance ministers to consider adjusting maturities of EFSF and EFSM loans to Ireland and Portugal
EU finance ministers agreed at their meeting on 5 March to consider an adjustment of the maturities on the European Financial Stability Facility (EFSF) and European Financial Stabilisation Mechanism (EFSM) loans to Ireland and Portugal. Such an adjustment would smooth debt servicing by the two countries, and support their sustainable return to full market financing. The ECOFIN Council will ask the “Troika” of creditors – the Commission, European Central Bank (ECB) and the International Monetary Fund (IMF) – to make a proposal for the best possible option for each country.
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Eurogroup urges rapid completion of MoU for loan to Cyprus
Euro area finance ministers welcomed the new Cypriot Finance Minister, Michalis Sarris, to their meeting on 4 March. Mr. Sarris provided information on the situation in Cyprus following the presidential elections and on the policy intentions of the new government. The preparatory work for concluding a Memorandum of Understanding (MoU) is advanced and the new government has agreed to an independent evaluation of the implementation of the anti-money laundering framework in Cypriot financial institutions. The Eurogroup called on the international institutions and Cyprus to accelerate their work on the building blocks of a programme, and agreed to target political endorsement of the programme for the second half of March.
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Commission and mayors of all EU capitals open direct dialogue on Europe's recovery
The European Commission and the mayors of all of the EU’s capital cities have announced the opening of a direct dialogue. The announcement on 28 February means that the capital cities will have a higher profile role as direct partners for the EU. Capital cities are drivers of innovation and smart growth, and often form the core of education and scientific networks. Their transport, energy and environmental policies have a decisive impact on sustainable growth. Moreover, as centres of social, cultural and ethnic diversity, Europe’s capital cities are key to inclusive growth.
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The debate on fiscal policy in Europe: beyond the austerity myth, ECFIN Economic Briefs. 20. March 2013. Brussels
This economic brief examines and responds to criticisms of the current fiscal strategy in the EU. The authors find that large adjustments are needed in most economies to restore sustainable fiscal positions, not because of the arbitrary will of the markets or of EU institutions. Moreover, they contend that fiscal policy recommendations under the EU framework have struck the right balance between consolidation and short-run run growth, and that the current EU fiscal strategy is essentially in line with the approach favoured by other international organisations. The economic brief also notes that the current approach is part of a comprehensive structural strategy that seeks to soften the consequences of fiscal adjustments, implement structural reforms and restore functioning financial channels, and that it is also part of a rebalancing process at work within the euro area.
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| Directorate-General for Economic and Financial Affairs |
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