Video conference of the Eurogroup

Main changes introduced by the reform of the ESM.

Main results







Inclusive format

Reform of the European Stability Mechanism (ESM)








The Eurogroup agreed to proceed with the reform of the European Stability Mechanism (ESM): to sign the revised ESM treaty and to launch its ratification.



The adjustments we have agreed today will further develop the ESM’s toolkit. We will now proceed to the signature of the Treaty in January and launch the procedures for ratification at national level.

Paschal Donohoe, President of the Eurogroup








Among other things, the reform establishes a common backstop to the Single Resolution Fund (SRF) in the form of a credit line from the ESM. Ministers also agreed on the early introduction of the common backstop by the beginning of 2022. 



The backstop is a last resort, it’s a further safety net at our disposal should we need it. It will reinforce and complement the resolution pillar of the banking union and will help to ensure that a bank failure does not harm the broader economy or indeed cause financial instability.

Paschal Donohoe, President of the Eurogroup








The Eurogroup issued a statement.



Banking union

Ministers were informed by the Chair of the High-Level Working Group on EDIS – the European deposit insurance scheme – on progress on the further strengthening of the banking union.



We took stock of the steady progress in the High-Level Working Group on other elements of banking union. Now that we reached an agreement on the ESM reform, we are in a good position to move forward in other areas.

Paschal Donohoe, President of the Eurogroup








Preparation of December Euro Summit

The Eurogroup prepared the Euro Summit that will take place on 11 December 2020. Eurogroup President Paschal Donohoe will report to the Euro Summit on the state of progress of the banking union.



Regular format

Greece: release of policy contingent debt measures

The Eurogroup discussed the eighth enhanced surveillance report on Greece and confirmed the release of the fourth tranche of policy-contingent debt measures.



In the case of Greece, we agreed that the very positive assessment warrants the approval of the next tranche of policy-contingent debt measures, and this is worth 767 million euros.

Paschal Donohoe, President of the Eurogroup








The Eurogroup issued a statement.



Post-programme surveillance

The European Commission and the European Central Bank (ECB) presented the main findings of the post-programme surveillance reports on:

  • Cyprus (ninth surveillance report)
  • Portugal (12th surveillance report)
  • Ireland (13th surveillance report)
  • Spain (14th surveillance report)

Post-programme surveillance (PPS) starts automatically after the end of financial assistance programmes and continues until at least 75% of the financial assistance received has been repaid. PPS reporting follows a biannual schedule.



IMF Article IV review of the euro area

The managing director of the International Monetary Fund (IMF), Kristalina Georgieva, presented the outcome of the IMF Article IV mission to the euro area. The Article IV review of the euro area is a regular exercise in which the IMF reviews economic developments, consults with euro area policy-makers and provides targeted policy advice.



Draft budgetary plans 2021

The Commission presented its opinions on the draft budgetary plans (DBPs) of the euro area member states for 2021 and its communication on its overall assessment of the DBPs, published on 18 November 2020. The Eurogroup held a first exchange of views on this basis.




by : europa.eu/newsroom on 2020-11-29 23:00:00

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