Eurogroup to meet, respond to call from EU leaders
Mario Centeno has called on eurozone finance ministers to meet next week to move fast on to tackle the crisis to the crisis generated by the pandemic.
Eurogroup president Mario Centeno has called on eurozone finance ministers to meet next week to move fast on the appeal by European leaders on measures to tackle the crisis generated by the pandemic.
The heads of state and government of the European Union (EU) agreed on Thursday on a statement in which they “invite” the Eurogroup to come forward in two weeks with proposals that take account of the unprecedented socio-economic shocks caused by the Covid-19 pandemic.
In a statement published on video hours after the end of the European Council, Mario Centeno said: “I will convene finance ministers for a meeting next week to make rapid progress.”
According to Portugal’s prime minister, António Costa, the eurozone finance ministers will consider policy measures at EU level to support economic recovery.
Centeno, who also attended the leaders’ summit as president of the Eurogroup, said he had presented the essential points for support regarding the crisis generated by the pandemic, supported by a set of existing tools of the European Stability Mechanism.
He assured European leaders on the preparation of the Eurogroup to complete this work and seek other innovative solutions with all the institutions.
After about six hours of discussions via videoconference, leaders of the 27 adopted a joint declaration inviting the forum of eurozone finance ministers, chaired by Centeno, to make proposals, within two weeks, considering the unprecedented nature of the Covid-19 shock that affects the economies of all member states.
At the beginning of the week, eurozone finance ministers favoured the use of a European Stability Mechanism conditional credit line, a solution that does not please some countries, including Italy, Portugal and Spain, which, together with other countries, have instead demanded the issuance of joint European debt (‘eurobonds’ or ‘coronabonds’.).
According to several diplomatic sources, the head of government of Italy demanded during the European Council held by videoconference that the EU find an adequate common response to the Covid-19 pandemic within 10 days.
The prime minister of the European country most affected by the pandemic – Italy accounts for more than 8,000 deaths – was very unhappy with the “response” in the first draft declaration of the European Council, and even refused to sign it, because it did not contain financial instruments truly adapted to war, according to several media, citing Italian government sources.
Several member states called for an EU response that was truly at the height of the crisis, namely through the mutualisation of the crisis, but this idea continues to meet with great resistance from some countries, such as Germany, as Chancellor Angela Merkel confirmed at the end, stating that this is not an option, neither for Berlin nor for other capitals.
The new coronavirus, responsible for the Covid-19 pandemic, has already infected 505,000 more people around the world, of whom some 23,000 have died.
