Ook VS-minister en onderdirecteur IMF aanwezig bij overleg Europese ministers van Financiën (en)

The meeting of EU finance ministers and central bank governors was also attended by the US Secretary of the Treasury, Timothy Geithner, and the First Deputy Managing Director of the International Monetary Fund i, David Lipton.

The debate focused on the indebtedness of some euro zone i countries and the measures being taken by the European Union and its Member States to deal with the crisis. The participants also considered the progress of financial services reform and a variety of financial stability issues, and adopted a common EU position for the Annual Meeting of the IMF and the accompanying meetings of G20 i Finance Ministers, scheduled in Washington on 22-23 September.

The primary result of the informal gathering was the attainment of a compromise on several hitherto unresolved questions relating to the reform of the EU's economic governance system. It will be comprised of six legal acts - five regulations and one directive - designed to bolster the Stability and Growth Pact. The legislative work on the package started last September, when it was put forward by the European commission. The European Parliament submitted over 2000 amendments to the package, which then became the subject of animated negotiations between the Council and the EP, in collaboration with the European Commission. In Wroclaw, the finance ministers agreed on measures that will allow a speedy, formal conclusion of work on the package. The most important changes include:

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  strengthening of the Council's decision-making process in the preventive part of the Stability and Growth Pact,
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  improvement of dialogue on macro-economic matters between European institutions,
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  supervision, under the excessive imbalance procedure, both of countries with current account deficits and surpluses, with due distinction between these two cases.

The results of the meeting will allow the Polish Presidency to wind up the essential formal procedures, paving the way for the European Parliament to vote on the package of the six legal acts before the end of September. Afterwards the ECOFIN i Council will formally approve this pack in the meeting on 4 October. In consequence, the new provisions on economic governance in the EU will come into force in the near future.

The package has been conceived to upgrade economic governance in the EU and particularly within the eurozone. Four of the six documents deal with public finances, reforming both the preventive and the corrective parts of the Stability and Growth Pact. The new directive on budgetary framework requirements will ensure that national solutions enhance fiscal discipline with the EU. Furthermore, the oversight of the economic policies of Member States will be upgraded through the introduction of a mechanism for preventing and correcting excessive macro-economic imbalances. A new excessive imbalance procedure will be instituted. The new rules will boost budgetary discipline in Member States and will consolidate the EU's economic stability.

The agreement is a powerful signal to investors and financial markets. It demonstrates convincingly that the Union and its institutions, including a robust presidency, are capable of working together, and that Europe can respond effectively to any challenges it encounters.

The ministers also discussed proposals aimed at tightening economic cooperation. The Presidency believes that the strengthening of economic integration of the states using the common currency should not lead to the emergence of a two-speed Europe.

US Treasury Secretary, Timothy Geithner told the Wroclaw meeting that the United States wants greater stability in Europe, which it views as a key economic and political partner. The US was hoping the European economy would become more resistant to crises and market disruptions - goals that would be facilitated by the ongoing reforms, including those relating to supervision and regulation of the financial sector and the consolidation of economic governance.

The meeting agenda also included issues pertaining to financial stability in the EU and the results of this year's stress tests in the banking sector. Furthermore, the European Commission reported on the progress of financial sector reforms and the related legislative proposals.

The debate on the EU's financial stability proceeded with the participation of representatives of the European Financial Supervisory Authorities (the European Banking Authority - EBA, the European Securities and Markets Authority - ESMA, and the European Insurance and Occupational Pensions Authority - EIOPA), who gave finance ministers and central bank governors their analysis of the current situation in the Union banking sector and in other related financial sectors. The analysis shows that thanks to tighter supervision the capital and liquidity indicators of the European banking system are better than they were in 2008-2009.

Participants then considered the adverse effect of the public debt crisis in the eurozone on the financing of the European banking sector (spillover effect). It is crucial in this regard to implement expeditiously anti-crisis measures worked out by the heads of state and governments of eurozone countries on 21 July, envisaging broader application of the European Financial Stability Facility (EFSF). Speakers highlighted the role of the European Central Bank in stabilising the banking sector, particularly by ensuring the liquidity of the sector.

National efforts to boost budgetary discipline need to be supplemented with structural initiatives at Union level. Proposals aimed at stiffening fiscal discipline should be coupled with development-stimulating measures.

As regards the banking sector stress tests, finance ministers and central bank governors heard a preliminary assessment of the 2011 tests, prepared by the European Banking Authority.

The participants welcomed the results of the latest test, which - though incorporating more rigorous requirements than last year - showed that the EU banking sector is resistant to negative scenarios. The sector was consolidated through measures designed to increase its capitalisation even before the tests were conducted. The discussion also touched on the operation of the protective mechanisms that banks were obligated to introduce following unsatisfactory results of stress tests. The participants agreed that in order to boost the resilience of the European banking sector and to possess quality protective instruments it was essential to regularly monitor the effective and timely implementation of the protective mechanisms.

The ongoing regulatory reform of the financial sector was the last item on the agenda of the informal ECOFIN session. The Presidency underlined the importance of the regulatory reform instituted in the European Union, which resulted in the establishment of micro-prudential oversight based on the three European Financial Supervisory Authorities and the European Systemic Risk Board.

The participants also reviewed present and future legislative initiatives. By the end of the year the European Commission intends to table draft regulations conceived to ensure the implementation of G20 recommendations concerning financial sector reform. The importance was also stressed of the package of regulations raising capital requirements for banks and streamlining their corporate structures, which will constitute implementation into Union law of the decisions of the Basel Committee on Banking Supervision. Furthermore, it was disclosed that the Commission plans to submit a draft regulation - a key element of the reform - concerning restructuring procedures for banks under threat of insolvency. The discussion also touched on further reform of the capital market, designed to enhance its security and that of consumers of financial services.

The European Commission will shortly unveil proposals for further regulations concerning the activity of credit rating agencies (CRAs), aimed at reducing the dependence of financial market actors on agency ratings, stimulating competition in the CRA sector, boosting transparency with regard to the rating of national debt instruments and reducing conflicts of interest in the activity of CRAs.

Member States took note of the European Commission's appeal for rapid adoption of the draft documents already submitted and those being planned.

The Presidency emphasised that the plan for implementation of the new regulations was extremely ambitious, but that it was exactly what Europe needed at this time.

The meeting of EU Finance Ministers in Wroclaw demonstrated that cooperation within the European Union and through trans-Atlantic dialogue could yield highly tangible results in the efforts to enhance the credibility of the measures being taken by governments and European institutions to deal with the economic crisis. The agreement on reform of economic governance constitutes an the best affirmation of this fact.