European Council

The Council:

1. RECALLS its Conclusions of 9 December 2014 on Finance for Growth and the Long-term Financing of the European Economy in order to further build on the policy targets and principles contained therein;
2. RECOGNISES that although EU capital markets have expanded over recent decades, they remain fragmented and less developed as compared to those in some other comparable jurisdictions, in particular in certain market segments crucial for jobs and growth such as securitisation and venture capital;
3. CONSIDERS that more developed and more integrated capital markets could unlock investment for companies and infrastructure projects, attract foreign investment, contribute to growth and job creation and make the financial system more efficient, robust and resilient to shocks; 

Place:    European Convention Centre (KIRCHBERG building), Luxembourg

All times are approximate and subject to change

08.45 tbc

Doorstep by High Representative Mogherini  

09.00

Adoption of the agenda
Adoption of A items

Energy diplomacy
Asia

13.15

Working lunch with UN Secretary General Ban Ki-moon - EU-UN cooperation

Former Yugoslav Republic of Macedonia

16.00

Press conference

If EUNAVFOR Med is launched, a press briefing on the operation will be held in Luxembourg after the adoption of the A-items. This briefing will be retransmitted live to the Council press centre in Brussels (accreditation to the Euro summit will be required for access to the press centre). 

In the margins of the Council:

17.20

EU-Montenegro Accession Conference (TV/photo opportunity)  

18.00

EU-Montenegro Stabilisation and Association Council

20.10

Press conference

 

On 19 June 2015, the Council agreed its negotiating stance on structural measures to improve the resilience of EU credit institutions. 

On the basis of this mandate, the incoming Luxembourg presidency will start negotiations with the European Parliament as soon as the latter has adopted its position. 

The proposal is aimed at strengthening financial stability by protecting the deposit-taking business of the largest and most complex EU banks from potentially risky trading activities. 

The proposed regulation would apply only to banks that are either deemed of global systemic importance or exceed certain thresholds in terms of trading activity or absolute size. Despite recent regulatory reforms in the banking sector, these credit institutions and groups remain too-big-to-fail, too-big-to-save and too complex to manage, supervise and resolve.

Tackling excessive risks 

The draft regulation is intended to reduce excessive risk taking and prevent rapid balance sheet growth as a result of trading activities. It sets out to shield institutions carrying out activities that deserve a public safety net from losses incurred as a result of other activities. It provides for the mandatory separation of proprietary trading and related trading activities and establishes a framework for competent authorities to take measures to reduce excessive risk taking. 

Trading activities other than proprietary trading would be subject to a risk assessment. If a competent authority finds that an excessive risk exists, it could require trading activities to be separated from the core credit institution, or demand an increase in the core credit institution's own fund requirements, or impose other prudential measures. Trading entities would be prohibited from taking retail deposits eligible for deposit insurance. 

Scope 

According to the Council's text, the regulation would apply to global systemically important institutions (in accordance with directive 2013/36/EU on capital requirements) or to entities with total assets of at least €30bn over the last three years and trading activities of at least €70 billion or 10% of their total assets. These banks would be allocated into two tiers, depending on whether the sum of their trading activities during the last three years exceeds €100 billion or not. Stricter reporting requirements, a more thorough risk assessment, and different supervisory actions would apply to banks exceeding the threshold. 

The regulation would not apply to institutions with total eligible deposits (under directive 2014/49/EU on deposit guarantee schemes) of less than 3% of their total assets, or total eligible retail deposits of less than €35bn. 

As proposed by the Commission, it would also not apply to sovereign debt instruments. But in the Council's text, a review clause has been further elaborated to specify that the Commission would review this exclusion taking into account developments at European and international level. 

National regimes 

To accommodate existing national regimes, the Council text provides two options for addressing excessive risk stemming from trading activities: This could be done either through national legislation requiring core retail activities to be ring-fenced, or through measures imposed by competent authorities in accordance with the regulation. 

Liikanen report 

The draft regulation builds on the recommendations of a report published in October 2012 by a "high-level group" chaired by the governor of the Bank of Finland, Erkki Liikanen (the "Liikanen report"). 

The regulation requires a qualified majority for adoption by the Council, in agreement with the European Parliament. (Legal basis: Article 114 of the Treaty on the Functioning of the EU.) 

On 19 June 2015, the Council closed excessive deficit procedures for Malta and Poland, confirming that they had reduced their deficits below the EU's 3% of GDP reference value.  

It abrogated previous decisions on the existence of excessive deficits in the two countries.  

As a consequence, 9 of the EU's 28 member states remain subject to the excessive deficit procedure, down from 24 during a 12-month period in 2010-11. Most of these procedures were opened after the global financial crisis and recession of 2008-09. The excessive deficit procedure has been used to support a return to sound fiscal positions.

Malta 

Malta was subject to an excessive deficit procedure from July 2009 to December 2012. The procedure was reopened in June 2013, after Malta's deficit was estimated to have reached 3.3% of GDP in 2012. A 2.6% of GDP deficit had been projected for 2012 when the procedure was closed in December 2012. 

In June 2013, the Council issued a recommendation calling on Malta to correct its deficit by 2014. To achieve this, it called for an improvement of the structural balance of 0.7% of GDP in 2013 and 2014. 

Malta reduced its general government deficit to 2.6% of GDP in 2013 and 2.1% in 2014. The Commission 2015 spring forecast projects deficits of 1.8% of GDP in 2015 and 1.5% in 2016. Malta's deficit is thus set to remain below the 3% of GDP reference value over the forecast horizon. 

Malta's debt-to-GDP ratio rose from 67.4% in 2012 to 69.2% in 2013, on account of a temporary stock-flow adjustment. It decreased to 68.0% in 2014, and is forecast to continue decreasing, reaching 65.4% in 2016, due in part to a favourable macroeconomic scenario. 

The Council concluded that Malta's deficit has been corrected. 

Poland 

Poland has been subject to an excessive deficit procedure since July 2009, when the Council issued a recommendation calling for its deficit to be corrected by 2012. 

In June 2013, the Council extended the deadline for correcting the deficit by two years, to 2014. Although Poland missed the 2012 deadline, it had made a fiscal effort over the 2010-12 period that exceeded the recommended level. In December 2013, the Council extended the deadline by a further year, to 2015. 

Poland's general government deficit amounted to 3.2% of GDP in 2014, above the 3% of GDP reference value. However, the Council found Poland to be eligible to specific provisions under the excessive deficit procedure dealing with systemic pension reforms, because: 

• its deficit is close to the reference value; 
• its debt-to-GDP ratio is below the 60% reference value for government debt, 

In December 2013, Poland reversed a pension reform introduced in 1999, but net costs of the 1999 reform continued until the end of July 2014. The total of these net costs for the period from January to July 2014 are estimated at 0.4% of GDP. The Council considered them to be sufficient to explain the excess of the deficit over the 3% reference value in 2014. 

Looking forward, the Commission's 2015 spring forecast projects deficits of 2.8% of GDP for 2015 and, based on a no-policy-change scenario, 2.6% of GDP for 2016. Poland's deficit is thus set to remain below the 3% of GDP reference value over the forecast horizon. 

Poland's general government gross debt reached 50.1% of GDP in 2014. The Commission's spring forecast projects it to amount to 50.9% of GDP in 2015 and 50.8% in 2016. 

The Council concluded that Poland's deficit has been corrected.

On 19 June 2015, the Council agreed the substance of its negotiating stance on two draft regulations aimed at modernising EU rules on medical devices and in vitro diagnostic medical devices. This is a step towards providing the presidency with a mandate to start talks with the European Parliament with a view to reach an agreement as early as possible.

The two draft regulations on medical devices cover a wide range of products, from sticking plasters to hip replacements, pacemakers and laboratory tests for assessment of medical interventions.  

The main objective of the two draft regulations is to ensure that medical devices are safe. This would be achieved by strengthening the rules on placing devices on the market and tightening surveillance once they are available.  

"We are pleased that under the Latvian presidency major progress could be achieved to strengthen the rules on medical devices. Today's agreement is a decisive step forward to improve patient safety and strengthen European competitiveness. Further work both within the Council and between the Council and the European Parliament is, however, needed to ensure that the benefits of the new rules are put into practice", said Guntis Belēvičs, the Latvian minister for health and President of the Council.  

Placing on the market

Unlike pharmaceuticals, medical devices and in vitro diagnostic medical devices are not subject to pre-market authorisation. Instead, they undergo a conformity assessment to establish whether they meet the applicable standards before they are placed on the market. Depending on the risk posed by a product, the assessment may involve a so-called notified body. This is an independent body with specific expertise for certain types of medical devices which assesses whether these medical devices meet the relevant standards.  

The Council further tightened the rules for the designation of notified bodies, for the monitoring of their assessment activities by national competent authorities and for co-operation of those competent authorities. The new rules would also give notified bodies the right and duty to carry out unannounced factory inspections.  

Post-market surveillance 

The Council added explicit provisions on manufacturers' responsibilities for the follow-up of the quality, performance and safety of devices placed on the market.  

Clinical investigations 

The draft regulations provide also for strengthened provisions on clinical investigation with a view to increase the availability of reliable clinical data on medical devices. The Council focused its efforts in particular on the protection of those undergoing clinical trials.

More transparency for patients 

The draft regulations seek to provide patients more transparency on the available devices, and increase their traceability.

 Patients who are implanted with a device would be given key information on the product, including any precautions which might need to be taken. Manufacturers of high-risk devices would have to make publicly available a summary of their safety and performance, with key elements of the clinical data. 

Increased traceability 

Manufacturers of medical devices would have to fit their products with a unique device identification to ensure traceability. Manufacturers and importers of both categories of products would have to register themselves and the devices they place on the EU market in a central database. An EU portal would be set up where manufacturers would have to report serious incidents and corrective actions they have taken to reduce the risk of recurrence. The Council took particular care to ensure that the traceability and identification rules can be implemented in practice. 

Next steps 

The agreement on the substance of the Council's negotiating stance will allow the next presidency to take contact with the European Parliament to prepare negotiations between the two institutions. Once the Council has finalised some outstanding technical work concerning the preamble of the two draft regulations, negotiations between the institutions will be able to start. 

The Council on 19 June 2015 agreed to increase the EU 2015 budget to respond to migratory pressures in the Mediterranean. The Council treated this draft amending budget no 5 as a matter of urgency and high political priority, thus backing up proposal by the Commission to provide for additional resources to manage migration and refugee flows by €89 million in commitments and €76.6 million in payments in a fast-track procedure. Since part of this support can be financed from unused funds in other areas the additional financing burden is limited to €75.8 million in commitments and no fresh payments are needed. The additional resources are intended to reinforce notably FRONTEX, the Asylum, Migration and Integration Fund, as well as the Internal Security Fund.

The Council also accepted the following draft amending budgets for 2015: 

• Draft amending budget no 4 which increases the 2015 EU budget by €66.5 million in commitments and payments for the EU solidarity fund to deal with the damage caused by floods in Italy (€56 million), Romania (€8.5 million) and Bulgaria (€1.98 million)
• Draft amending budget no 3 which seeks to incorporate the budget surplus of 2014 into the revenue side of the EU budget for 2015. The 2014 EU budget closed with a surplus of €1.43 billion

 Next steps 

The European Parliament is expected to vote on the three draft amending budgets at its plenary session starting on 6 July 2015. If the Parliament accepts the Council's position the draft amending budgets are adopted. If the Parliament adopts amendments a three-week conciliation period would start.

On 19 June 2015, the Council approved recommendations and opinions on economic and fiscal policies planned by the member states. 

It also approved a specific draft recommendation on the economic policies of the euro area. 

Approval of the texts is a key stage in the "European Semester", an annual policy monitoring process. Recommendations coving economic and fiscal as well as employment policies will be referred to the European Council for endorsement at its meeting on 25 and 26 June. The Council will then adopt them in July 2015.

In March 2015, the European Council approved priorities for the 2015 European Semester. It endorsed the three main priorities of the Commission's annual growth survey, namely investment, structural reforms and growth-friendly fiscal consolidation. 

An annual process

The European Semester involves simultaneous monitoring by the Commission of the member states' economic and fiscal policies during a six-month period every year. 

In the light of policy guidance given by the European Council annually in March, the member states present each year in April: 

• National reform programmes for their economic policies. These set out a macroeconomic scenario for the medium term, national targets for implementing the "Europe 2020" strategy for jobs and growth, identification of the main obstacles to growth, and measures for growth-enhancing initiatives in the short term;
• Stability or convergence programmes for their fiscal policies. Euro area countries present stability programmes, whereas non-euro member states present convergence programmes. The programmes set out medium-term budgetary objectives, the main assumptions about expected economic developments, a description of fiscal and economic policy measures, and an analysis of how changes in assumptions will affect fiscal and debt positions. 

The Council then approves country-specific recommendations and opinions (CSRs), for endorsement by the European Council. It provides explanations in cases where the recommendations do not comply with those proposed by the Commission. 

The 2015 CSRs are addressed to 26 of the EU's 28 member states. To avoid duplication there are no CSRs for Cyprus and Greece, as they are subject to macroeconomic adjustment programmes. 

On 19 June 2015, the Council extended the EU restrictive measures in response to the illegal annexation of Crimea and Sevastopol until 23 June 2016. The sanctions include prohibitions on:

• imports of products originating in Crimea or Sevastopol into the EU;
• investment in Crimea or Sevastopol, meaning that no Europeans nor EU-based companies can buy real estate or entities in Crimea, finance Crimean companies or supply related services; 
•  tourism services in Crimea or Sevastopol, in particular, European cruise ships cannot call at ports in the Crimean peninsula, except in case of emergency;  
• exports of certain goods and technologies to Crimean companies or for use in Crimea in the transport, telecommunications and energy sectors and related to the prospection, exploration and production of oil, gas and mineral resources. Technical assistance, brokering, construction or engineering services related to infrastructure in these sectors must not be provided either.

 As stated by the European Council on 19 March 2015, the EU continues to condemn the illegal annexation of Crimea and Sevastopol by the Russian Federation and remain committed to fully implement its non-recognition policy. 

In light of the outcome of the Eurogroup meeting today, I have decided to convene a Euro Summit on Monday 22 June at 19h00. It is time to urgently discuss the situation of Greece at the highest political level.

Place:  European Convention Centre (KIRCHBERG building), Luxembourg
Time: Meeting starts at 10 am 

All times are approximate and subject to change

ttbc

Doorstep by Minister Reirs  

09.30 

Ministerial breakfast

10.00

Adoption of the agenda
Adoption of legislative A items (public session) 

10.15

Banking structural reform (public session)  

10.50

Investment plan for Europe (public session)

11.30

Press conference

12.00

Administrative cooperation (public session)

12.30

Interest and Royalties directive(public session) 

13.00

Any other business: Financial services (public session)

13.05

Adoption of non-legislative A items 

13.10

Any other business

Implementation of the Banking Union

Capital Markets Union

Contribution to the European Council meeting on 25-26 June 2015

Implementation of the Stability and Growth Pact 

16.30

Press conference

The Eurogroup welcomes the institutions' conclusion following the sixth review mission that Cyprus' adjustment programme has been brought back on track. The fiscal performance continues to be solid, the debt outlook has improved, and structural reforms are progressing in several areas. We note with satisfaction the signs that confidence is strengthening, the economy is emerging out of recession, and the stabilization in the labour market, although unemployment remains high.

Reforms in the financial sector have progressed. After repeated delays, the legal framework establishing a new foreclosure procedure has entered into force. A comprehensive reform of corporate and personal insolvency laws has also been adopted. These developments have marked an essential step towards addressing the very high level of non-performing loans, which is a drag on restoring growth and job creation in Cyprus. To sustain the progress achieved so far, we reiterate the importance of ensuring a full, swift and effective implementation of these frameworks. Further action to effectively tackle the very high stock of arrears remains a key priority, with important ground to cover in the coming months, notably facilitating the sale of loans and ensuring that title deeds are transferred without delay to property buyers.

We call on the authorities to lend renewed momentum to the implementation of the fiscal-structural and structural reform agenda, including privatisation and public administration reform, in order to improve economic growth prospects and strengthen public finances, while safeguarding the protection of the most vulnerable groups.

The Eurogroup considers that Cyprus' overall positive track record since the beginning of the macro-financial programme has paved the way to the abolition of all capital controls on transactions earlier in the year.

In view of the above, the Eurogroup endorsed in principle the disbursement of the next tranche of financial assistance to Cyprus. Subject to national procedures and formal approval by the ESM governing bodies, the ESM is scheduled to disburse EUR 100 million in mid-July. Concurrently, the IMF Executive Board is expected to decide on the disbursement of about EUR 280 million.  

On 17 June 2015, the Council presidency and the European Parliament reached an agreement on a regulation to improve the transparency of securities lending and repurchase transactions.

The regulation will enhance financial stability by ensuring that information on so-called securities financing transactions is efficiently reported to trade repositories and investors in collective investment undertakings. Improved transparency will prevent banks and other financial intermediaries from attempting to circumvent regulation by shifting parts of their activities to the less-regulated shadow banking sector.

Securities financing transactions, often carried out by the shadow banking sector, consist of any transaction that uses assets belonging to the counterparty to generate financing. They mostly involve lending or borrowing of securities and commodities, repurchase (repo) or reverse repurchase transactions, or buy-back/sell-back transactions.

A package of measures

The Commission presented its proposal in January 2014, together with a draft regulation on structural reform of the EU banking sector. The regulation on securities financing transactions is in particular intended to counter the risk of trading activities based on securities financing transactions further developing without proper oversight, including outside the regulated banking system. To this end, it proposes binding transparency and reporting requirements for securities financing transactions.  

Transparency

The draft regulation introduces measures to improve transparency in three main areas:

• the monitoring of the build-up of systemic risks in the financial system related to securities financing transactions;
• the disclosure of information on such transactions to investors whose assets are employed in the transactions;
• rehypothecation activities, a practice by banks or brokers of reusing for their own purposes collateral pledged by their clients.

Next steps

The agreement was reached during a trilogue meeting in Brussels. Trilogues started  on 28 April 2015, after the Council and Parliament agreed their respective negotiating stances in December 2014 and March 2015.

The agreement will be confirmed within a few days by the Permanent Representatives Committee, on behalf of the Council. The regulation will then be submitted, following legal-linguistic revision, to the European Parliament for a vote at first reading, and to the Council for adoption.

On 17 June 2015, the Latvian presidency of the Council struck a provisional deal with the European Parliament on new rules to improve interoperability and safety authorisation procedures for European railways. The reform also gives new tasks to the European Railway Agency (ERA). Together, the two directives and a regulation make up the technical pillar of the fourth railway package.

For the Council, the agreement still has to be confirmed by member states. The presidency will present the agreed texts to member states' ambassadors at the Permanent Representatives Committee on 24 June.

The agreement was reached in the ninth trilogue meeting with the Parliament. The Council approved its position for these negotiations in June 2014.

On 13 March 2015, the Council adopted Council Decision (CFSP) 2015/432[1].

The Council Decision renews the existing measures until 15 September 2015, amends the entries for certain persons, and amends the list of persons, entities and bodies subject to restrictive measures as set out in the Annex to Decision 2014/145/CFSP

The Candidate Countries Montenegro* and Albania*, and the EFTA countries Iceland, Liechtenstein and Norway, members of the European Economic Area, as well as Ukraine align themselves with this Council Decision.

They will ensure that their national policies conform to this Council Decision.

The European Union takes note of this commitment and welcomes it.

 

[1] Published on 14.3.2015 in the Official Journal of the European Union no. L 70, p.47.
* Montenegro and Albania continue to be part of the Stabilisation and Association Process.

On 20 March 2015, the Council adopted Council Decision (CFSP) 2015/487[1] amending Decision 2011/173/CFSP. The Council Decision renews existing measures until 31 March 2016.

The Candidate Countries Turkey, the former Yugoslav Republic of Macedonia*, Montenegro* and Albania*, and the EFTA countries Iceland and Liechtenstein, members of the European Economic Area, as well as Georgia align themselves with this Council Decision.

They will ensure that their national policies conform to this Council Decision.

The European Union takes note of this commitment and welcomes it.

 

 [1] Published on 21.3.2015  in the Official Journal of the European Union no. L 77, p. 17.
*The former Yugoslav Republic of Macedonia, Montenegro and Albania continue to be part of the Stabilisation and Association Process.

On 20 March 2015, the Council adopted Council Decision (CFSP) 2015/486[1] amending Decision 2011/172/CFSP. The Council Decision renews existing measures until 22 March 2016.

The Candidate Countries the former Yugoslav Republic of Macedonia*, Montenegro*, Serbia* and Albania*, the country of the Stabilisation and Association Process and potential candidate Bosnia and Herzegovina, and the EFTA countries Iceland and Liechtenstein, members of the European Economic Area, as well as the Republic of Moldova and Georgia align themselves with this Council Decision.

They will ensure that their national policies conform to this Council Decision. 

The European Union takes note of this commitment and welcomes it.

 

 [1]Published on 21.3.2015  in the Official Journal of the European Union no. L 77, p. 16.

*The former Yugoslav Republic of Macedonia, Montenegro, Serbia and Albania continue to be part of the Stabilisation and Association Process.

In cooperation with President Juncker and High Representative Mogherini, I have decided to appoint Ambassador Pierre Vimont as my personal envoy to lead preparations for the Valletta Conference between EU and African countries, called for by the special European Council of last April. His role will in particular be to ensure coherence in the EU's preparatory process in order to tackle the causes of illegal migration and combat the smuggling and trafficking of human beings.  

Ambassador Vimont is a former secretary general of the European External Action Service and former Permanent Representative to the EU.

 

 

Place: European Convention Centre (KIRCHBERG building), Luxembourg
Time: Meeting starts at 9.30 on 18 June and at 10.00 on 19 June

 All times are approximate and subject to change

All items are in public session, except for certain items under any other business

Thursday, 18 June (09.30) - Employment and Social Policy  

08.15

Doorstep by Uldis Augulis, Minister for Welfare

09.30

Adoption of the agenda
Adoption of non-legislative A Items
Adoption of legislative A Items

09:45

European Semester 2015: Contribution to the European Council (Brussels, 25-26 June 2015)

12.00

Proposal for a Council decision on the employment guidelines of the  member states 

12.10

Youth employment

12.30   

Closing the gender gap in pensions - Council conclusions

Proposal for a directive on improving the gender balance among non-executive directors of companies listed on stock exchanges and related measures 

Proposal for a Council Directive on implementing the principle of equal treatment between persons irrespective of religion or belief, disability, age or sexual orientation

13.00

AOB

13.15

Press conference

followed by Working lunch - Equality between women and men: strategic orientations up to 2020 

Friday, 19 June (10.00)  -  Health and Consumer Affairs

ttbc

Doorstep by Guntis Belēvičs, Minister for Health of Latvia

10.10

Medical and in-vitro diagnostic devices

12.00

AOB

13.00

Press conference

On 16 June 2015, the Latvian Presidency of the Council of the EU, the Council General Secretariat and the ECI Campaign gathered the opinions of stakeholders and the wider public in a conference on "The European Citizens' Initiative and the Promise of Participatory Democracy". The aim of the conference was to take stock of the three years since the creation of the European Citizens' Initiative (ECI), and to give impetus to discussions on how to make the instrument more efficient and user friendly.

Opening the conference, the Latvian Parliamentary State Secretary for EU Affairs Zanda Kalniņa-Lukaševica set out the situation: "The past three years have shown that the European Citizens' Initiative is part and parcel of the EU's democratic structures. However the experience of stakeholders and the recent report from the Commission have clearly highlighted that there are still issues which need to be addressed quickly if the ECI is to continue to be seen as a viable instrument". 

"The European Citizens' Initiative is a real force for mobilising and inspiring public opinion. Six million people have demonstrated this through their signatures", said Zanda Kalniņa-Lukaševica. 

Kalniņa-Lukaševica underlined the importance which Latvia attaches to participatory democracy, having one of the most innovative and successful e-petition platforms in Europe, ManaBalss.lv. 

The ECI is the world's first tool of transnational, participatory and digital democracy. Nevertheless, none of the three initiatives, which secured the required one million signatures, have resulted in a legislative proposal, raising a number of questions. 

The conference was the first public debate on the ECI in the Council, bringing together those from the institutions, stakeholders, and the wider public with the twin aim of reviewing the role of participatory democracy in the EU and refining a set of joint recommendations for improving the instrument. 

The discussions at the conference highlighted that some progress can be achieved through immediate action, without legislative changes, by means of raising public awareness about the initiative and its procedures. Another suggestion is to provide greater assistance to the organisers of initiatives.

More political impetus and possible legislative changes are needed to address the structural problems, such as the too tight deadlines for collecting signatures. Measures should also be taken in simplifying or digitalising the signature collection procedures. The conference conclusions will be published on 18 June ECI campaign website.

Good evening. We can start this press conference from today's Eurogroup meeting in which we have a number of issues. I will start by Greece given the urgency of its situation.

Greece

The Eurogroup today took stock of the situation regarding the programme of Greece. Regrettable to say that too little progress has been made in the talks between the institutions and Greece  That is no agreement has yet is in sight.  

Let me recall that at the basis of which we work is the agreement of the Eurogroup of 20th Feb and the statement that we agreed upon in February. In that agreement, there were two kinds of flexibility. One, we said we would allow the institutions to take into account the current economic situation in Greece and if necessary, adjust the fiscal targets and timelines considering the economic situation and the deterioration of this economic situation in Greece.

Second flexibility which we allowed was to replace measures both  fiscal measures and reforms by other measures being put forward by the greeks after having been being assessed by the institutions. So there was also flexibility within the current MoU to replace measures.

The institutions have made used of those two kind of flexibilities during their talks with the Greek authorities. But as we stand now, too little measures that have been put forward and been assessed are to be credible and serious and to be put in a new agreement. Therefore, the talks of the last weeks have not progressed.  

Today in our meeting, we sent a strong signal to the Greek authorities that it's really up to them to submit new, additional proposals in the coming days to fully engage with the institutions, within the framework of the Eurogroup statement of 20th Feb.

As of today, it is still possible to find an agreement and extend the current programme before the end of this month. But the ball is clearly in the Greek court to seize that last opportunity. We feel that an agreement must be credible. It has to be credible from the perspective of sustainable finances and economic recovery in Greece. But also it has to be credible from the point of view of the credibility of our monetary union and the eurozone as a whole. We think that it is still possible but if such an agreement is sent to the Eurogroup in the coming days we will judge it on that: the credibility both of Greece and for the eurozone as a whole.

Finally, let me again stress that time is really running out. The current programme expires by the end of this month, There are of course parliamentary procedures to consider. Therefore, very little time remains.

Cyprus and Portugal

Today we also discussed the situation in Cyprus.

We welcomed that the Cyprus programme has been brought back on track, and the prior actions have been complied with. As we have adopted a statement, which will be distributed, and I do not need to go into great detail. Let me just emphasise that we welcomed the progress and reforms in the financial sector, including the new foreclosure framework, which is an essential step towards addressing the very high level of non-performing loans in the financial sector.

Important challenges remain for the remainder of the Cypriot programme, notably to reduce the stock of arrears. This must remain a key priority.

Given the overall positive picture, we endorsed in principle the updated MoU and the next ESM disbursement). National parliamentary procedures are now underway.

We also reviewed the situation in Portugal on the basis of a debrief by the institutions on the main findings of their second post-programme surveillance mission. The IMF participated and they call it 'post-programme monitoring'. The ESM also participated it and the name is the 'early warning surveillance'. We welcomed the progress made and the expected strengthening of the economic recovery in Portugal. At the same time, fiscal and structural challenges remain, but we are confident that Portuguese efforts will be maintained,

The developments in Portugal and Cyprus, taken together with our discussions earlier this year on post-programme surveillances in Spain and Ireland, demonstrate a clear pattern of countries taking the necessary measures to turn around their economies and sparking growth. I think the success of the programme has been proven in all of these countries.

Once again I would like to commend the authorities and the people of Portugal and Cyprus for their continued efforts, in which they show ownership and commitment to reforms can clearly pay off.

Euro area economy

We had discussions on a broad range of important issues for the euro area economy.

To start off, Christine Lagarde debriefed us on the IMF's recently concluded Article IV review of the euro area. The IMF sees as we do a strengthening of the cyclical recovery underway, but this is for a large part driven by temporary factors, so we need to keep focusing on ways to increase our growth potential and to push forward structural reforms that are needed in that sense

There is broad agreement within the Eurogroup on the policy priorities identified by the Fund, namely structural reforms, appropriate fiscal policies and making sure the financial sector can fund their economies. In particular, one of the messages of the Fund is to use wisely the yields savings stemming from unusual low interest rates.  We had a discussion on this topic being prepared by the Commission and agreed that low interest rates open up a window of opportunity to consolidate public finances, invest, for example, in infrastructure and reform our economies. It is an opportunity that we must use well. We will return to this topic later in the year.

 There is substantial overlap between the Fund's priorities for the eurozone and the draft 2015 euro area recommendations proposed by the Commission - which is part of the European Semester. We endorsed these draft recommendations and we are committed to monitor their implementation over the coming years so they will be put into our working programme in the Eurogroup. We must keep the reform momentum and the Eurogroup intends to keep on pushing on concrete progress and greater ownership in this area.