The main issues to be discussed today in the Eurogroup

The economic situation in the eurozone, the reform of fiscal rules and the banking union are among the main issues that will be discussed today at the Eurogroup, which meets in Brussels at 16:00 (Greek time).

First item on the agenda: economic adjustment and the resilience of the eurozone. According to a European official, the growth remains stable, despite the uncertainty caused by the Omicron variant of the new coronavirus. After all, the eurozone recovered much faster from the pandemic crisis than during the global financial crisis, the same official observed.

The discussion, which will compare the recent performance of the eurozone with that of the US and other economies, will be attended by OECD chief economist Lawrence Boone.

Also on the Eurogroup agenda is the solvency of European companies, with Member States now channeling their support to areas most affected by the pandemic, and in particular to “sustainable” companies. According to a source close to the eurozone, corporate insolvency has remained surprisingly low over the past two years, but distinguishing between “viable” and “unsustainable” companies is difficult.

In the debate on the revision of the Stability and Growth Pact (SGP), eurozone finance ministers will look for the first time at aspects of fiscal rules that could be revised, such as how to control the application of the rules. The official noted that the emphasis on the rules could shift to the adoption and implementation by national governments, rather than to the threat of financial sanctions, which have never been implemented in the EU. Ecofin, with the 27 EU finance ministers. The aim of the French Presidency of the European Council is to have a more specific framework for discussion by March.

EU finance ministers will discuss strengthening the banking union, in particular how to complete a consensus, phased and time-bound work plan on all outstanding issues. Ministers will also take stock of the ratification of the revised European Stability Mechanism (ESM) treaty. To date, fifteen of the nineteen eurozone countries have ratified it, except Germany, Italy, France and Portugal.