Voorbereiding van Eurogroep en informele Ecofin-Raad van 8 en 9 september (en)

EUROGROUP (AT)

Eurogroup ministers will meet at 9:30 hrs on Friday 8 September. Joaquín Almunia, Commissioner responsible for Economic and Monetary Affairs will attend as will European Central Bank Governor Jean-Claude Trichet. A press conference is scheduled to take place after the meeting, i.e. at the end of the morning.

Eurogroup ministers will have their discussion on the evolution of the economy since their last meeting in early July. Commissioner Almunia will present the new economic forecasts for the six largest European Union countries as well as the EU and euro area aggregates. The EU and the euro area economies are expected to grow by 2.7% and 2.5% respectively this years versus 1.7% and 1.4% in 2005 (for more information on September 6 interim forecasts see IP/06/1154).

Ministers will also prepare the upcoming ministerial meetings of the G7 and the International Monetary and Financial Committee (IMFC) and the Development Committee of the IMF and the World Bank in Singapore on 17-18 September. This is with a view to identify the key messages to be conveyed on behalf of the Eurogroup.

Among the other points, ministers will also hear about, and discuss, the Commission’s assessment regarding the action taken by Germany in response to the Council decision of 14 March under Article 104.9, in order to correct the excessive deficit by 2007 at the latest (see IP/06/1022). The Commission’s communication of July 19 will also be discussed by the Informal Ecofin Council the following day. However, the final position on the action taken by Germany to correct the excessive deficit will need to be taken by an upcoming formal gathering of the Council.

Finally, Ministers will have an exchange of views on ways to improve the euro area budgetary governance.

ECOFIN COUNCIL

The Informal Council of Economics and Finance Ministers will start Friday 8 September around 13:00hrs with a working lunch (end of first day scheduled around 16.30 hrs.) and will continue the day after, Saturday 9 September at 8.30 hrs with a working breakfast. The European Commission will be represented by Economic and Monetary Affairs Commissioner Joaquín Almunia and Internal Market Commissioner Charlie McCreevy. A press conference will be held at the end of the meeting.

Economic and financial aspects of energy policy (AT)

The Informal Ecofin Council meeting will start with a working lunch during which ministers will discuss the economic and financial aspects of the energy system, such as the macroeconomic impacts of energy price developments and the design and use of fiscal instruments in support of the numerous energy policy targets.

When presenting the interim economic forecasts on Sept 6, Commissioner Almunia noted that the economy had until now shown a remarkable and surprising resilience in the face of the increase of 80% in oil prices since the beginning of 2005. Although HICP inflation 2006 forecast has been revised to 2.3%, core inflation (i.e. without the impact of energy prices and the prices of unprocessed food) remains under control.

Global competition, innovation and productivity (AT)

Following on the efforts of former presidencies, the Finnish government has called for a discussion on “global competition, innovation and productivity”. The stated aim is to find means for Europe to respond to the challenges of the intensifying global competition and to strengthen its economic growth potential also in view of an ageing population.

While recalling the importance of the implementation of the Lisbon Strategy in addressing the challenges related to innovation, production and dissemination of technologies, Commissioner Almunia is set to stress that Europe needs to increase its innovation capacity in order to be more competitive on the world scene. With integration, European financial markets have grown at fast pace, but financing opportunities for investment in innovation at the level of SMEs and entrepreneurs remain constrained. Venture capital investment in early stage companies needs fostering. Actions underway at European level include the work of the European Investment Fund (EIF) in helping to finance spin-outs from university research through its support for technology transfer;

Application of the Stability and Growth Pact (AT) (breakfast Saturday 9)

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  Ongoing excessive deficit procedure

Ministers will discuss the Commission’s assessment of the action taken by Germany in response to the Council decision of 14 March in accordance with Article 104.9 for the deficit reduction judged necessary in order to remedy the situation of excessive deficit. See Eurogroup agenda above and IP/06/1022).

Financial market stability, supervisory convergence & stability and crisis management (OD)

Ministers and Governors will discuss how the conditions and outlook in EU financial markets have evolved since their last discussion in April as the basis for an assessment of financial system stability. In addition, progress in improving the current arrangements for safeguarding financial stability – relating to cross-border prudential supervision and procedures for crisis-management - will be reviewed.

Preparation of the Bretton Woods Institutions’s Annual meeting (AT)

The annual meetings of the Bretton Woods Institutions will take place in Singapore later this month. Finance Ministers will discuss their preparation, in particular the position-taking at the G7 Finance Ministerial and at the International Monetary and Financial Committee. Three issues will feature prominently at the Singapore meetings: the global economic outlook, quota adjustments and the IMF surveillance framework. The prospects for the world economy are good for 2007 but some risks remain, in particular with respect to the speed and effect of the US housing market price correction, the persistence of high energy prices and of global current account imbalances. The Board of Governors of the IMF is expected to adopt a resolution on the reform of quotas and voice at the IMF. The initial round of ad-hoc quota increases will address the legitimate claims of the most underrepresented countries in the IMF, while more fundamental issues, including the increase in basic votes, are now on a clear and ambitious time track. A comprehensive reform is long overdue, and will enhance the legitimacy, credibility and governance of the IMF. Surveillance remains central to the IMF's role in promoting sound economic policies and financial stability. To this end, surveillance needs to be made more effective by re-focussing its objectives, including by increased attention to exchange rate developments.

^[1] The Informal Ecfin Council will be followed by a meeting of the Asia-Europe Meeting (ASEM).