ECOFIN focuses on Investment Plan for Europe, banking union and France discussed

On Tuesday, March 10, the Minister for Finance, Jānis Reirs chaired the meeting of the EU Economic and Financial Affairs Council (ECOFIN) in Brussels. During the meeting, the EU Member States expressed their views on the Investment Plan for Europe, Banking union and other issues.

Investment Plan for Europe

The Council agreed its negotiating stance on a European fund for strategic investments, enabling negotiations with the European Parliament to start rapidly.

The fund is part of a plan aimed at mobilising more than €315bn in private and public investment, thereby facilitating economic recovery, job creation and long-term growth and competitiveness.

The aim is to reach an overall agreement by June, so as to enable new investments to begin as early as mid-2015.

“There is strong political support amongst member states for this initiative , said Janis Reirs, minister for finance of Latvia and president of the Council. “In the current economic conjuncture, there is a clear understanding that we need to rapidly deliver new investments in Europe. 

Excessive deficit procedure for France

The Council granted France two extra years to bring its government deficit below 3% of GDP, calling for the deficit to be corrected by 2017.

Extending the deadline was justified by the fiscal effort made by France since 2013, the Council found, and by the current weak economic situation and other factors.

It called on France to fully implement measures agreed for 2015, and asked for an additional fiscal effort to be made by the end of April.

Banking union

The Council reviewed implementation of Europe’s banking union, specifically as concerns instruments to deal with the recovery and resolution of failing banks.

It called on member states to speed up moves to ratify the intergovernmental agreement on the single resolution fund and implement the EU directive on bank recovery and resolution.

Press conference following ECOFIN Council