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Eurogroup meeting marks new phase in crisis response as ministers consider possible euro area dimension to recovery facility

Meeting on 11 June, euro area finance ministers took stock of the economic situation and the policy measures required to support recovery.

date:  18/06/2020

See alsoRemarks by Mário Centeno following the ...

They specifically discussed a possible euro area dimension to the Recovery and Resilience Facility proposed by the Commission. Now that safety nets for workers, firms and sovereigns in the emergency phase have been agreed and are ready to use, ministers will focus on the quality of expenditure and work on the complementarity of national and EU level recovery plans. Coordinating recovery plans, particularly within the euro area, is key to avoiding divergence and the build-up of imbalances. Ministers also discussed the sixth enhanced surveillance report on Greece by the Commission, commending the Greek authorities for continuing reform progress and for a decisive and appropriate policy response that has mitigated some of the adverse effects of the crisis. They approved the next tranche of debt measures. Reviewing the post-programme surveillance for Cyprus and Spain, ministers found that both countries have implemented suitable measures and reforms despite the very challenging times. In discussing the Banking Union, ministers noted that banks went from being a shock amplifier in the sovereign debt crisis, to become a shock absorber in the current crisis. They agreed that work on the strengthening of the Banking Union must continue. Lastly, Eurogroup President Mário Centeno, who will not be seeking a second mandate, announced that the process to identify his successor will begin shortly.