Economic governance

Commission vows to break with troika-type conditions in recovery phase

03-06-2020

It is increasingly evident that the European Commission has no intention to return to the tight cash-for-reform system to manage the recovery funds and that ‘hawkish’ member states could find it difficult to turn the proposed procedure into a troika-type oversight.

Economy & Jobs 22-05-2020

France wants EU budget rules suspended through 2021

France on Thursday (21 May) called on the EU to suspend its strict budgetary rules for member states for this year and next due to the severe hit economies have taken during the coronavirus pandemic.
06-05-2020

Coronavirus will trigger the deepest recession in EU history

The economies of EU countries will shrink by 7.4% this year as the coronavirus crisis is set to cause the worst recession in the bloc’s history, according to the European Commission's spring forecast presented on Wednesday (6 May), which also foresaw a significant rebound in 2021.
20-04-2020

COVID-19: EU’s plan to save the economy

The European Commission estimates the economic impact of the coronavirus outbreak could be greater than the financial crisis in 2008. In order to keep the economy running, the EU executive introduced flexibility for funds and national expenditure, member states approved...
Economy & Jobs 01-04-2020

Eurogroup to discuss EU-wide unemployment reinsurance scheme

The European Commission is planning to present to EU finance ministers next week its pan-European unemployment reinsurance scheme proposal to support the most affected countries by the coronavirus.
Economy & Jobs 25-03-2020

Eurogroup nearing agreement to use bailout fund against pandemic

Countries of the euro area are close to an agreement to use the European Stability Mechanism to provide credit lines of up to 2% of their GDP to tackle the consequences of the coronavirus COVID-19.
Economy & Jobs 24-03-2020

EU countries warn of ‘severe economic downturn’, suspend Stability Pact

EU member states took the unprecedented decision to suspend the Stability and Growth Pact obligations on Monday (23 March), in order to allow billions of euros in extra spending to mitigate the "severe economic downturn" caused by the coronavirus.
Economy & Jobs 20-03-2020

Commission proposes unprecedented suspension of EU’s fiscal rules 

The European Commission proposed for the first time on Friday (20 March) the activation of the general escape clause that would ‘pause’ the adjustments member states have to do to meet their fiscal targets and allow them to spend "as much as they need".
17-03-2020

Fearing coronavirus recession, France weighs nationalisation

France's finance minister said Tuesday (17 March) that he was willing to nationalise large companies to protect them from bankruptcy, while warning that the country faces recession this year as the coronavirus epidemic sinks the economy.
Economy & Jobs 13-03-2020

Coronavirus ‘very likely’ to push Europe into recession, Commission warns

The European Commission said on Friday (13 March) that the coronavirus COVID-19 will “very likely” push the European economy into recession this year, and warned that the rebound next year will depend on a bold response from member states.
10-03-2020

As stock markets collapse, IMF calls for support for the coronavirus-infected economy

The International Monetary Fund called on governments worldwide Monday (9 March) to join forces and roll out aggressive financial supports for the coronavirus-infected global economy, including direct payments to workers and businesses.
Economy & Jobs 04-03-2020

EU finance ministers hold fire on combating coronavirus

EU finance ministers promised on Wednesday (4 March) a coordinated response to address the economic impact of coronavirus but postponed any decision at least until their formal meeting in mid-March.
26-02-2020

Dombrovskis: EU’s fiscal rules are flexible for impact of coronavirus

The European Commission will be "flexible" with Italy and other member states affected by the coronavirus when assessing their efforts to balance their public accounts, European Commission vice-president Valdis Dombrovskis said in an interview.
12-02-2020

‘Too early to assess’ the economic impact of coronavirus, Commission says

The European Commission won't consider the effects of the coronavirus outbreak in its updated growth forecast, expected on Thursday (13 February), saying it is "too early" to estimate the impact of the virus on the region’s output, EU sources told EURACTIV.
Economy & Jobs 27-01-2020

Centeno: ‘I do see good reasons to support green investment under the fiscal rules’

Speaking to EURACTIV in Davos, Eurogroup President Mario Centeno remained hopeful about the eurozone's stalled reform process, saying there are “good reasons” to support ‘green’ investment as part of a broader review of EU fiscal rules due later this year.
24-01-2020

IMF warns of the risk of central banks’ ‘cheap money’

The monetary stimulus has been one of the main engines of growth over the past years, but continuing with the supply of 'cheap money' could hurt low-income countries, fuel risky investments and affect savers, warned the IMF on Friday (24 January).

ECB’s Lagarde warns of ‘danger of doing nothing’ on climate

ECB chief Christine Lagarde on Thursday (23 January) said the bank would study what role it could play in combatting climate change as part of a major policy review, warning of "the danger of doing nothing".
22-01-2020

IMF calls for ‘more automatism’ in public spending

As monetary policy nears its limits to lift the world's sluggish economy, the International Monetary Fund told governments on Tuesday (21 January) to introduce "more automatism" in their fiscal rules in order to counter the economic slowdown.
Economy & Jobs 02-01-2020

Eurozone 2020: The race against the clouds

After seven years of growth, the eurozone's outlook is deteriorating. There is a risk of a recession if the trade war with Washington worsens, while member states continue to disagree over the completion of the economic and monetary union that would help them cope with a downturn.

Germany’s incoming ECB board member opposes pumping cash into green assets

The European Central Bank should not favour so-called "green" assets in its multi-trillion-euro bond-buying programme or its work as bank supervisor, incoming ECB board member Isabel Schnabel said in an interview published on Monday (30 December).
Economy & Jobs 18-12-2019

Brussels lowers expectations about ‘green’ overhaul of Stability and Growth Pact

The European Commission is cautious about loosening EU fiscal rules in order to incentivise ‘green’ investment by member states. Valdis Dombrovskis, the Commission Vice-President for the economy, said on Tuesday (17 December) he wants to avoid “divisive” issues.
Economy & Jobs 13-12-2019

Conte buys Italy’s government more time over eurozone bailout fund

Italy's prime minister Giuseppe Conte claimed victory on Friday (13 December), after changing the wording of the Euro summit's conclusion postponing a final agreement on the reform of the eurozone bailout fund.
13-12-2019

Costa and Centeno clash over euro budgetary instrument 

Tensions between Portuguese prime minister, Antonio Costa, and his finance minister and Eurogroup president, Mario Centeno erupted in front of EU leaders on Friday (13 December) as the two clashed over the design of the eurozone budgetary instrument .
Economy & Jobs 13-12-2019

ECB to embark on soul-searching process in 2020 

The European Central Bank will next year review its tools and objectives in order to better fulfil its mandate of price stability, and it also intends to assess the appropriateness of issuing its own digital currency, in the face of growing concerns about Facebook’s Libra.
Economy & Jobs 09-12-2019

Inflation, climate, jargon: ECB launches major review

The European Central Bank's new president Christine Lagarde has announced that the Frankfurt-based institute will soon undertake a strategic review, its first since 2003.
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