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Eurogroup welcomes submission of Draft Budgetary Plans and that no Member State is under the corrective arm of the SGP

Meeting on 4 December, euro area finance ministers welcomed that all 19 Member States have submitted Draft Budgetary Plans (DBPs) for 2020, and that no DBP was found in particularly serious non-compliance with the Stability & Growth Pact (SGP).

date:  05/12/2019

They also welcomed the fact that for the first time since 2002 no euro-area Member State is currently under the corrective arm of the SGP. The Eurogroup invited Belgium, Austria, Portugal and Spain to submit the updates of their DBPs as soon as possible, to ensure compliance with the SGP. Finance ministers also agreed that if downside risks to the economy materialise, fiscal responses should be differentiated, taking into account country-specific circumstances and avoiding pro-cyclicality to the extent possible. Regarding the implementation of reform commitments by Greece based on the fourth enhanced surveillance report, ministers, welcomed the confirmation by the institutions that Greece is projected to comfortably meet the primary surplus target of 3.5% of GDP for 2019. They also praised the budget for 2020, which is projected to ensure the achievement of the primary surplus target and which includes a package of growth-friendly measures aimed at reducing the tax burden on capital and labour. The Eurogroup also reappointed Hans Vijlbrief as President of the Eurogroup working group (EWG), for another two-year term.