Sunday, 6 November 2011

Eurozone Monday: Follow-up to October EU summits

I presume that the finance ministers meeting in the Euro Group and Ecofin 7-8 November 2011 already have these additions to the Council background note in their files. Perhaps others would like to be spared the tedious search.

Follow-up to October meetings

For a deeper view on the main text of the background note (page 2) and the Annex (page 6) on the strategy employed to counter the crisis in the eurozone, you can consult the following recent Ecofin, Euro Group, European Council and eurozone summit documents:

Council confirms agreement on economic governance; Luxembourg, 4 October 2011 (14998/11; 5 pages), i.e. six-pack highlights

Communiqué by the Eurogroup on the Greek Economic Adjustment Programme; 21 October 2011 (1 page), with green light for the next tranche of aid, pending IMF approval, based on the Troika assessment under the first rescue programme for Greece; second rescue package being prepared

Extraordinary Council meeting Economic and Financial Affairs; Brussels, 22 October 2011 (15893/11; 8 pages), preparation of European Council, but conclusions devoid of substance

European Council 23 October 2011 conclusions (EUCO 52/11; 12 pages), with growth priorities including the Single Market Act, full implementation of the Services Directive, request for a roadmap for a fully integrated Digital Single Market, reduction of the administrative burden for businesses (Smart Regulation), putting into practice recommendations on budgetary policies and structural reform; energy, including energy efficiency, as well as research and innovation; y increase cofinancing rates and better targeting for EU funds; implementation of the new framework for economic governance and a strengthened role for commissioner Olli Rehn; an ambitioius second round for the European semester; stronger financial regulation at the EU and the global level; preparation of eurozone summits 23 and 26 October with Herman Van Rompuy designated president of eurozone summits, his report having been postponed to December; assertive external trade policy, based on bilateral and regional agreements with strategic partners; promoting economic ties with neighbourhood; promoting trade policy issues. The conclusions also dealt with G20 preparations, climate change and foreign policy, before a statement on the cessation of ETA's terrorist activities.

Statement of EU heads of state or government; Brussels, 26 October 2011 (3 pages), when the national leaders of all 27 EU member states were informed about the euro summit later in the day. They agreed to a text on the banking package, as part of the whole set of eurozone measures.

Euro summit statement; 26 October 2011 (15 pages), reiterated steps taken and outlined the second rescue package to Greece including haircuts of 50%, leverage for the EFSF, bank recapitalisation and funding, antional measures in addition to the six-pack, the European Semester and the Euro Plus Pact, possible Treaty changes. The eurozone summit also announced (Annex 1) ten measures to improve the governance of the euro area (many of the Franco-German proposals endorsed). Consensus on the banking package in Annex 2.

Ralf Grahn