News

Real Economy examines Europe’s ticking time bomb: wage inequality

The EU economic and financial landscape – and especially economic governance – has evolved dramatically since the first issue of ECFIN e-news was published in December 2009.

European Fiscal Board publishes assessment of the prospective fiscal stance appropriate for the euro area.

On 25 June, the European Investment Bank (EIB) and Landesbank Saar (SaarLB) signed a EUR 70 million guarantee agreement to promote the development of renewable energies in France and Germany.

Staff from the European Commission, in liaison with staff from the European Central Bank, visited Lisbon from 5 to 12 June to conduct the eighth post-programme surveillance (PPS) review for Portugal.

On 22 June, EU finance ministers agreed to close the Excessive Deficit Procedure (EDP) for France, confirming that its deficit has dropped below the EU's 3% of GDP reference value.

The Eurogroup agreement achieves what we have been calling for: a credible, upfront set of measures, which will meaningfully lighten Greece's debt burden, allow the country to stand on its own two feet, and reassure all partners and investors. Today, eight long years of crisis come to an end for Greece and, symbolically, for the euro area as a whole. Today a new chapter begins.

At their meeting on 21 June, euro area finance ministers discussed the fourth (and final) review of Greece's ESM programme and commended the Greek authorities for the completion of all the agreed prior actions.

Agenda

In the latest edition of Real Economy, Euronews examines social protections or the lack thereof.

Seasonally adjusted GDP rose by 0.4% in both the euro area and the EU during the first quarter of 2018, compared with the previous quarter, according to an estimate published by Eurostat, the EU statistical office.

The European Investment Bank (EIB) signed a EUR 250 million loan agreement on 31 May with the Swedish telecom company Ericsson for research, development and innovation in fifth generation mobile telecommunications systems (5G).

Meeting on 24 May, euro area finance ministers were informed about the staff-level agreement concluded by the institutions and the Greek authorities on 19 May and the Commission presented to them 54its 2018 spring forecast, which was published on 3 May.

The Commission is proposing new rules that will allow market-led solutions to support further integration and diversification within Europe's financial sector, leading to a stronger and more resilient Economic and Monetary Union.

“…we must equip the EU and our euro area with the necessary tools to deliver even more prosperity and stability. Today's proposals are about making the Economic and Monetary Union the protecting and uniting force that it was conceived to be. The Investment Plan for Europe has proven a success when it comes to mobilising private investment and creating jobs in Europe… With InvestEU, we are taking this successful model and expanding it across the many EU financing programmes on offer.”

For the next long-term EU budget 2021-2027, the Commission has unveiled several programmes that will further strengthen Europe's Economic and Monetary Union (EMU) and boost job creation, investment and innovation.

The EU economic and financial landscape – and economic governance – continues to evolve in 2018.

Your #EUBEF18 experience in one word

Europe is not behind the Valley on technology development, and has better regulation: panel on “What financial system for a deeper EMU in a digital era

The euro area needs to act now to complete Europe’s economic and Monetary Union so as to realise the full benefits of the euro and defeat populism, said Eurogroup President Mário Centeno, at the Brussels Economic Forum. “When our leaders meet in three weeks’ time, here in Brussels, we have a choice to either remain vulnerable to the next crisis and to political or market instability; or to be bold and decide to take the euro more seriously,” he said, in a keynote speech closing the Forum.