Verklaring Dijsselbloem op de persconferentie na bijeenkomst Eurogroep (en)

Brussels, 22 November 2013

Remarks by Jeroen Dijsselbloem i at the press conference following the meeting of the Eurogroup on 22 November 2013

Good evening everyone. Today, we welcomed the first round of the new Two Pack procedure. It is the first time we discussed together our budgetary plans and policies for the next year, before the start of the fiscal year

Let me briefly recall that, today, we covered 13 euro area countries. The other four are, as you know, in macroeconomic adjustment programmes and are monitored through other procedures

First I would like to focus briefly on the states of the euro area economy compared to the rest of the world, before going to the conclusions of today’s meeting, both for the euro area as a whole as for individual countries

Let me kick off with some general comments first

Today, we concluded that the euro area is making its way out of the crisis as signs of economic recovery become more visible

Across the euro area efforts are focussed on ensuring sustainable and inclusive growth. Europe’s challenges are structural, so we have to address them in a structural way

Progress on public finances has been impressive. Fiscal consolidation efforts are now producing first results. The euro area debt level is expected to stabilise in 2014 and the deficit is planned to fall below 3% of GDP for the first time since 2008. Both debt and deficit projections for the euro area are considerably more positive than for example for US or Japan, with debt levels of somewhat above 100% respectively 240% of GDP

On our external position. Since 2009, the euro area as a whole has a current account surplus. Reforms have had a positive effect on the flexibility and health of our economies, improving competitiveness throughout the euro area

Unemployment is, unfortunately, still high, and in some countries unacceptably high. However, important reforms are on-going to improve the functioning of our labour markets. And of course there is always a time lag between an improving economy and an increase in the employment rate. But employment growth in recent years has been comparable to other parts of the developed world

Let me focus on today’s meeting, which was dedicated to the assessment of the draft budgetary plans of the euro area Member States, as well as the fiscal situation and prospects for the euro area as a whole

The two-pack process strengthens the coordination and surveillance of budgetary policies within the euro area, by providing a European assessment of national budgets before they are finalised by national parliaments. And it will enhance the transparency of Member States' budgetary policies, to the benefit of us all

Now we have taken this task seriously. In the Eurogroup today, we have had a good discussion in which we have scrutinised each other’s draft budgets. My colleagues demonstrated a constructive stance in this discussion, for which I want to thank them. And I think we have shown that we are not afraid to confront and question each other. Even more important: that we can learn from one another and help each other where needed

As a conclusion, we have found that the planned or announced fiscal effort for 2014 is broadly appropriate. However, all Member States should continue to pursue the sustainability of their public finances, not only through a timely correction of their excessive deficits, but also by an appropriate convergence towards the Medium Term Objective and adherence to the debt rule

The Eurogroup highlighted that all Member States should focus more on the quality and composition of the adjustment, in order to ensure that our policies continue to be as growth-friendly as possible. In particular, the share of investment in public expenditure should increase in future years

Finally, in this context, we have emphasized the importance of strong implementation of structural reforms. Not only to ensure long term sustainability of public finances, but above all to increase potential growth of our economies. As reported by the Commission last week, progress on reforms has been mixed. And we have invited the Commission to continue its close monitoring of this process

Now on individual countries. First of all we welcomed that no draft budgetary plan was found in serious non-compliance with the obligations of the SGP

Before going into more detail on the individual Member States, I would like to recall that in the case of Germany, Luxembourg and Austria, the draft budgetary plans have been submitted by outgoing governments. Ant the incoming governments will submit updated plans once the draft budgets are available, and we will revisit these plans afterwards on the basis of the assessment by the Commission of course

This being said, we have dedicated most of our time this afternoon in the meeting to those Member States that were found not fully compliant and asked ministers to present their budgetary strategy in reaction

We recognised that, for a number of Member States, compliance with the rules of the Stability and Growth Pact is assessed to be at risk. We therefore invited those Member States to take – as appropriate – additional consolidation measures within their national budgetary process, or in parallel

These Member States are in particular Spain, Italy, Malta and Finland. Ant the respective Ministers showed their full commitment to address this risk and explained how they plan to respect the budgetary rules

In the case of Malta, a range of measures has been adopted in the context of the 2014 budget

In the case of Italy, a number of measures are in the process of implementation, among which spending review, privatisation plan and number of tax measures

In the case of Spain, we were informed that measures, based on the National Reform Programme, are currently in preparation, including a second round of labour market reform

In the case of Finland, we were informed that new measures will be announced shortly

The Commission will assess these measures once they have been adequately specified and will provide an updated assessment to the Eurogroup thereafter, and will bring these countries fully in line with our rules

Let me conclude by thanking the Commission and the staff of the Commission for the dedicated manner in which it has taken up its task of assessing our draft budgets. These in-depth analyses were elaborate and sound

I will stop here. And now offer the floor to Olli Rehn and will of course be happy to answer questions later on