EUROGROUP,COUNCIL OF THE EUROPEAN UNION update

 

Meetings Monday 23 May 2022

● Eurogroup   23/05/2022 22:01 | MEETING | Main results - Eurogroup, 23 May 2022   The Eurogroup discussed the macro-economic developments on the basis of the Commission Spring Forecast, and the appropriate fiscal policy response. It also discussed the candidacies received for the position of Managing Director of the European Stability Mechanism (ESM). In inclusive format, the Eurogroup took stock of the work on the work plan for completing the Banking Union.

Eurogroup
Eurogroup, 23 May 2022

Main results
Regular format
Macroeconomic and fiscal developments in the euro area

Ministers discussed the macro-economic developments on the basis of the Commission Spring Forecast. Based on the updated economic outlook, the Eurogroup discussed the appropriate policy response, in view of the current economic challenges, with a focus on fiscal policies.



The Eurogroup has consistently emphasised that our fiscal strategy should be agile and responsive to unfolding events. This approach remains all the more relevant as heightened uncertainty needs sufficient flexibility. That's why the Commission's announcement on keeping the general escape clause activated for another year is an important development. At the same time, this decision doesn't change our objective of progressively shifting our fiscal stance from supportive this year to neutral next year. There is broad agreement amongst ministers that we need to strive to continue to make our budgetary policies and decisions as sustainable as possible in this uncertain environment. So we will be following up on the discussion today in more depth in the next couple of months. The policy trade-offs are very complex and we will take the time necessary to get the policy balance right. We will aim to adopt a statement on the budgetary stance for next year at our July Eurogroup meeting.Paschal Donohoe, President of the EurogroupSpring 2022 economic forecast (European Commission)
Managing Director of the ESM

Following the call for candidates for the position of Managing Director of the European Stability Mechanism (ESM), ministers had an exchange of views on the candidacies received.
Draft Budgetary Plans

Ministers received a presentation from the Commission on its opinions concerning the updated Draft Budgetary Plans of Germany and Portugal. The Eurogroup then issued a statement.Eurogroup statement on the updated draft budgetary plans of Germany and Portugal (press release 23 May 2022)
Draft budgetary plans 2022 (European Commission)
Inclusive format
Banking Union

Ministers discussed the draft work plan for the completion of the Banking Union, building on the progress made during the Eurogroup in inclusive format of 3 May and the work done by the High-Level Working Group (HLWG) since then.


We will work hard in the time ahead to set the path for the future of this vital and common project. I will re-engage on this again in June to find an agreement. I continue to reflect on all the arguments that I heard today on Banking Union, and I'll engage with all ministers and do my very best to help reach a balanced compromise.Paschal Donohoe, President of the EurogroupBanking Union (background information)


Meeting information

Brussels
23 May 2022
15:00
Preparatory documentsDraft agenda, Eurogroup
Draft agenda, Eurogroup in inclusive format
Draft annotated agenda, Eurogroup
Draft annotated agenda, Eurogroup in inclusive format
Upcoming vacancy of the ESM Managing Director – Letter of intent by Marco Buti
Upcoming vacancy of the ESM Managing Director – Letter of intent by Pierre Gramegna
Upcoming vacancy of the ESM Managing Director – Letter of intent by Joao Leao
Upcoming vacancy of the ESM Managing Director – Letter of intent by Menno Snel
Outcome documentsList of participants
List of participants, Eurogroup in inclusive format


Press releasesRemarks by Paschal Donohoe following the Eurogroup meeting of 23 May 2022
23 May 2022, 21:40

Press material Monday 23 May 2022

● Eurogroup   23/05/2022 21:45 | Statements and remarks | Remarks by Paschal Donohoe following the Eurogroup meeting of 23 May 2022   Let me start this press conference with a thought for the people of Ukraine. While we are aware that the Eurogroup discussed the economic consequences of the war that has been inflicted upon them, we're also very, very conscious of their human suffering at this terrible time. That said, let me say a word about where we are economically. It's now very clear that the economic toll of this war is worldwide. High prices and disruption to food supplies are crippling across the world with very serious consequences for the most vulnerable in our societies. And of course, the euro area is facing these challenges, too. However, we do have the resilience to face this new shock with savings that were built up during the pandemic. Healthy balance sheets in the financial sector and the flexibility and agility of our economy can and will see us through this challenge. There will be an impact on growth in the short term and the high price of energy and other commodities on world markets which does mean that, as a continent, our purchasing power has suffered. Our discussion today showed that many member states are indeed cushioning the blow for their citizens, especially for the most vulnerable households. The Commission presented to the Eurogroup the package it issued today and the European Central Bank outlined how it is responding to higher inflation. The Eurogroup has consistently emphasised that our fiscal strategy should be agile and responsive to unfolding events. This approach remains all the more relevant as heightened uncertainty needs sufficient flexibility. That's why the Commission's announcement on keeping the general escape clause activated for another year is an important development. At the same time, this decision doesn't change our objective of progressively shifting our fiscal stance from supportive this year to neutral next year. There is broad agreement amongst ministers that we need to strive to continue to make our budgetary policies and decisions as sustainable as possible in this uncertain environment. So we will be following up on the discussion today in more depth in the next couple of months. The policy trade-offs are very complex and we will take the time necessary to get the policy balance right. We will aim to adopt a statement on the budgetary stance for next year at our July Eurogroup meeting. On the subject of fiscal policy, we discussed the updated draft budget plans of Portugal and Germany. We welcomed the Commission opinions on them and we share the Commission's positive assessment. As usual, we have adopted a short Eurogroup statement reflecting our views. We also today discussed the candidacies for the upcoming vacancy of the Managing Director of the European Stability Mechanism. The purpose of having this discussion within the Eurogroup was to assess the level of support that candidates receive and to play a role in facilitating the actual appointment which will take place at the ESM Board of Governors. Following a brief presentation by my colleagues from Italy, Luxembourg, the Netherlands and Portugal of their nominees, we then held an indicative vote. The Netherlands have decided to withdraw their candidacy. That means we now have three candidates in this contest: Marco Buti, Pierre Gramegna and João Leão. We will continue further informal consultations with a view to add to reaching an agreement at the ESM Board of Governors meeting on the 16th of June. Today, we continued our discussion in inclusive format on the draft work plan to complete the Banking Union, building on the special meeting we had earlier this month and much work in in the high level working group. We had a full discussion on my proposal for a stepwise and time bound work plan. The meeting we had this evening fully met my expectations regarding our discussion. What is on the table is very finely balanced, based on four policy areas, two phases and a political checkpoint. I have to acknowledge that differences of views remain. This is what I would expect at this point in the process. Nonetheless, reaching agreement would be beneficial. It would send a sense of commitment on an important point and indicate that we've aimed and have been successful in reaching a fair balance for all parties. We will work hard in the time ahead to set the path for the future of this vital and common project. I will re-engage on this again in June to find an agreement. I continue to reflect on all the arguments that I heard today on Banking Union, and I'll engage with all ministers and do my very best to help reach a balanced compromise.

The Eurogroup welcomes the submission of the Draft Budgetary Plans for 2022 of Germany and Portugal, as well as the Commission Opinions issued on 19 …




Press material
Monday 23 May 2022
● Eurogroup
23/05/2022 18:27 | Statements and remarks |

Eurogroup statement on the updated draft budgetary plans of Germany and Portugal

The Eurogroup welcomes the submission of the Draft Budgetary Plans for 2022 of Germany and Portugal, as well as the Commission Opinions issued on 19 May 2022.

We agree with the Commission’s positive assessment of the DBPs and in particular welcome the assessment that the Plans are intended to support the recovery and that nationally financed investment is planned to be preserved in 2022. We also welcome the Commission’s assessment that Portugal broadly limits the growth of its nationally financed current expenditure as recommended by the Council.

The DBP exercise is key to the coordination of fiscal policy in the euro area. We are continuing our strong coordination of fiscal policy in the euro area to weather the heightened risks and uncertainties, and their impact on our economy, as agreed on 14 March 2022.

Eurogroup statement on the fiscal guidance for 2023 (press release 14 March 2022)

Economic governance framework (background information)




Press material
Monday 23 May 2022

● Council of the EU



23/05/2022 13:05 | Press release |

Cyber posture: Council approves conclusions

The Council today approved conclusions on developing the Union’s cyber posture. The posture aims to demonstrate the EU’s determination to provide immediate and long-term responses to threat actors seeking to deny the EU a secure and open access to cyberspace and affect its strategic interests, including the security of its partners.
Cybersecurity initiatives

In the conclusions Council highlights the five functions of the EU in the cyber domain:strengthen resilience and capacities to protect;
enhance solidarity and comprehensive crisis management;
promote the EU’s vision of cyberspace;
enhance cooperation with partner countries and international organisations;
prevent, defend against and respond to cyber-attacks.

Ministers, among other things, call upon the Commission to propose EU common cybersecurity requirements for connected devices and associated processes and services, invites relevant authorities such as the EU’s Agency for Cybersecurity (ENISA) to formulate recommendations in order to reinforce the resilience of communications networks and infrastructure within the EU and stresses the importance of establishing regular cyber exercises in order to test and develop the EU internal and external response to large-scale cyber incidents.
Background

Cyberspace has become an arena for geopolitical competition and therefore the EU must be able to swiftly and forcefully respond to cyberattacks, such as state-sponsored malicious cyber activities targeting the EU and its Member States and make full use of all its instruments. Hostile actors need to be aware that cyberattacks against Member States and EU institutions will be detected early, identified promptly and met with all necessary tools and policies.

Council conclusions on the development of the European Union's cyber posture

Strategic Compass




Meetings
Monday 23 May 2022

● Council of the EU



23/05/2022 11:09 | MEETING |

Agriculture and Fisheries Council, 24 May 2022



Background brief - Agriculture and Fisheries Council, 24 May 2022

Council of the EU Agriculture and Fisheries Council, 24 May 2022 Live streaming Live streaming 24 May 202207:30 Arrivals 10:15 Public session 14:50 Public session 19:20 Public session 20:00 Press conference Estimated schedule Agenda highlights EU agriculture ministers will meet in Brussels to discuss the spread of the highly pathogenic avian influenza and a strategic approach to the development of vaccination. Ministers will further exchange views on the situation of agricultural markets in view of the situation in Ukraine. Highly pathogenic avian influenza Ministers will adopt conclusions on vaccination as a complementary tool to current measures for the prevention and control of the highly pathogenic avian influenza (HPAI). Avian influenza poses a risk to public health and is detrimental to animal health and welfare, with serious economic consequences for the poultry sectors affected. Presidency note on highly pathogenic avian influenza Other matters Agricultural markets Ministers will be briefed by the Commission on the development of solidarity channels between the EU and Ukraine, and on the market situation for agri-food products in the wake of the Russian invasion of Ukraine. The invasion of Ukraine has significantly disturbed global agricultural markets, putting pressure on agricultural products and commodities needed for agricultural production such as energy and fertilisers. Despite the additional uncertainty this creates for markets, the EU has a significant agri-food trade surplus and is largely self-sufficient for food. High market prices and inflationary trends have nevertheless brought concerns around affordability, with food prices being the main concern.Commission communication on safeguarding food security and reinforcing the resilience of food systems EU response to Russia's invasion of Ukraine 12th WTO Ministerial Conference Ministers will have the opportunity to provide political guidance to the Commission in view of the 12th Ministerial Conference of the World Trade Organisation, which will take place from 12 to 15 June in Geneva, Switzerland.Twelfth WTO Ministerial Conference Epidemiosurveillance platforms The French presidency will inform ministers about an event on epidemiosurveillance platforms that took place in hybrid format in March.Seminar on epidemiological surveillance platforms Keeping of companion animals The Cyprus delegation will share information with ministers regarding the establishment of a new EU legislative framework for an EU positive list for the keeping of companion animals. This session will be public.Position paper on a new EU legislative framework for an EU Positive List for the keeping of companion animals on behalf of Cyprus, Lithuania, Luxembourg and Malta Phytosanitary controls on imports into the EU The Spanish delegation will inform ministers of the need to implement effective protection systems for phytosanitary controls on imports into the EU. This session will be public. Soil protection The Slovakia delegation will inform ministers on the workshop ‘Dialogue on the future of soil protection in the EU and its potential to help achieve the goals of the European Green Deal’ that took place in Brussels on 27 April. This session will be held publicly.Dialogue on the future of soil protection in the EU and its potential to help achieve the goals of the European Green Deal Reducing the use of peat in the horticultural sector The German delegation will inform ministers of the need to reduce the use of peat in the horticultural sector in order to contribute to the fight against climate change. This session will be held in public.Peat reduction in horticultural growing media - Information from the German delegation G7 Agriculture Ministers' Meeting The German delegation will brief Ministers on the G7 Agriculture Ministers' meeting in Stuttgart on 13-14 May, which discussed building resilience in agricultural systems. This session will be public. Report from the meeting of G7 agricuture ministers (Stuttgart,13 - 14 May 2022) - Information from the German delegation Spring droughts The Belgian delegation will inform the Ministers about the very unfavourable weather conditions in Belgium this spring, which are leading to a deterioration in the condition of food crops and the availability of feed for livestock, with widespread declines in productivity. This will be discussed during the exchange of views on the market situation.Drought situation in Belgium in spring 2017 = Information from the Belgian delegation Beneficiaries of EAFRD funded projects The Romanian delegation will share information on the impact of COVID-19 and the war in Ukraine on the construction and assembly sector, as well as on the implementation of national rural development programmes. This session will be public.The difficult situation the beneficiaries of EAFRD-funded projects are facing as a result of the high price increase of material/costs - Information from the Romanian delegation Meeting information Meeting n°3872 24 May 2022 10:00 Preparatory documentsProvisional agenda Provisional list of A items Background brief Provisional list of A items, addition 1 List of A items, non-legislative activities