Eurogroup, 11/07/2016 - Main results
Main results
Economic and financial situation in the euro area
The Eurogroup i exchanged views on the economic and financial situation in the euro area. Ministers were briefed by the Commission and the ECB on the developments in financial markets following the outcome of the UK referendum i on 23 June.
There are signs that markets, after initial corrections, are stabilising. However, the prevailing uncertainty, in particular among investors, could weigh on the medium-term growth prospects, including in the euro area.
"There is a high degree of uncertainty, but it does not change our commitment to continue working on sound growth-friendly fiscal policies, structural reforms, sorting out the banking sector. Our agenda and our commitment to that agenda remain unchanged", said Eurogroup President Jeroen Dijsselbloem i after the meeting.
Post-programme surveillance in Ireland and Portugal
The Eurogroup was informed about the main outcomes of the fifth post-programme surveillance review in Ireland and the fourth post-programme surveillance review in Portugal, both carried out in June 2016.
The two post-programme surveillance missions concluded that both Ireland and Portugal are able to repay the loans they received under their respective programmes.
Statement following the fifth post-programme surveillance mission to Ireland (June 2016)
Statement following the fourth post-programme surveillance mission to Portugal (June 2016)
Stability and Growth Pact - implementation in the euro area countries
The Eurogroup exchanged views on the budgetary situation in Spain and Portugal. On 7 July the European Commission adopted recommendations for Council decisions establishing that neither country has taken effective action to correct its excessive deficits within the timeframe set by the Council recommendation of 21 June 2013.
The decisions based on these Commission recommendations will be taken by the Council of the EU i.
Euro area fiscal stance
The Eurogroup discussed the euro area fiscal stance based on the national stability programmes submitted by the euro area member states in the context of the European Semester in April this year.
The Eurogroup agreed that the aggregate fiscal stance in the euro area is expected to turn from mildly expansionary in 2016 to broadly neutral in 2017.
The debate will feed into the member states' preparation of their budgetary plans for 2017 later in the year.
Thematic discussion on growth and jobs: investment in the euro area
The Eurogroup continued its series of thematic discussions on growth and jobs, this time focusing on investment. Ministers exchanged views on how to address structural and regulatory obstacles to investment, focusing in particular on improving the efficiency of public administration, the business environment and on specific bottlenecks encountered by different sectors.
This discussion is complementary to broader, EU-wide initiatives to boost investment.
Reviving investment is of particular importance to raise the short and long-term growth prospects of the euro area economy.
The Eurogroup will continue the discussion later this year.