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France PM - 29 days ago

Major progress in the Eurozone with the adoption of a Eurozone budget and the reform of the European Stability Mechanism (ESM)

14 June 2019Major progress in the Eurozone with the adoption of a Eurozone budget and the reform of the European Stability Mechanism (ESM) Bruno Le Maire, Minister of Economy and Finance, welcomes the historic agreement reached at the Eurogroup meeting held in Luxembourg on 13 June 2019. TweeterPartagerEnvoyer A major agreement on the Eurozone budget, the safety net for the Banking Union and the European Stability Mechanism (ESM) was adopted at the Eurogroup meetings of 13 June 2019. This is decisive progress in the Eurozone reforms proposed by the President of the Republic to consolidate monetary union, making it stronger and more stable.

Regarding the ESM, the use of precautionary lines has been simplified. Countries facing difficulties can now make use of these precautionary lines more swiftly and flexibly. The ESM becomes a real firewall in the event of a crisis in order to ensure financial stability in the Eurozone.

Eurozone finance ministers have also defined and put in place a €60 billion safety net (“backstop”) to supplement the Single Resolution Fund in order to stabilise the Eurozone’s banking sector in the event of a financial crisis.

For Bruno Le Maire, this is excellent news for savers in the Eurozone and therefore for French savers. If a new financial crisis breaks out in Europe tomorrow, they will have additional protection in the form of this safety net which safeguards their savings and deposits .

Lastly, following two years of discussions and an initial Franco-German agreement – the Meseberg agreement –, which was decisive in providing a basis for the 19 Eurozone countries’ deliberations, an agreement has been reached on the Eurozone budget. The governance, structure, functioning and priorities of this Eurozone-specific budget have been established. This budget aims to increase competitiveness and achieve more convergence among the countries in our monetary union.

Building on this robust and operational foundation, Heads of State and Government will set out the next steps during the Eurozone Summit on 21 June. The objective is to finalise the agreement on the Eurozone budget in the next few months. The precise financing arrangements as well as the size of this budget will be determined during the course of discussions on the multiannual financial framework.
Emmanuel Macron’s promise has been fulfilled. There is a budget for the Eurozone and it will be operational by 2021. This is a mini-revolution.
Bruno Le Maire
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