Meeting of the Committee on Economic and Monetary Affairs (ECON) with Jeroen DIJSSELBLOEM, President of the Eurogroup, in the EP in Brussels. Exchange of views on the Economic Dialogue with Esther de LANGE (EPP, NL), Jeroen DIJSSELBLOEM, President of the Eurogroup, Pervenche BERÈS (S&D, FR), Brian HAYES (EPP, IE).

Brussels

exchange of views

meeting

BERÈS, Pervenche (S&D, FR)

Committee on Economic and Monetary Affairs

economic dialogue (T)

HAYES, Brian (EPP, IE)

DIJSSELBLOEM, Jeroen

Eurogroup (euro area)

DE LANGE, Esther (EPP, NL)

Economic Dialogue and exchange of views with Jeroen DIJSSELBLOEM, President of the Eurogroup: extracts from the debate at the Committee on Economic and Monetary Affairs

Arrival of Jeroen DIJSSELBLOEM, President of the Eurogroup, greetings to ECON Members, atmosphere shots before the start of the meeting (3 shots)

SOUNDBITE (English), Jeroen DIJSSELBLOEM, President of the Eurogroup, Temporary tailwinds which had supported the recovery are starting to fade and also the economic outlook is surrounded by elevated uncertainty. For the Euro area this means that now, more than ever, it's time to make sure that our recovery becomes more self-sustained. To this end, we need to focus on investment, sound fiscal policies and structural, economic and social change.

SOUNDBITE (English), Jeroen DIJSSELBLOEM, President of the Eurogroup, The debate now is about fiscal stimulus, should countries spend more? Now, whether there is fiscal space that can be possible, investments in infrastructure for example are welcome in some countries. The Commission has the mandate to issue recommendation on the fiscal stands, but such a recommendation is not binding, the use of fiscal space is up to countries themselves.

SOUNDBITE (English), Esther de LANGE (EPP, NL), Can you comment that you are agree with that analysis that it was, you now, not wise to call for fiscal expansion? And then, Mr Moscovici also said that in doing so this was proved that the Commission wants to move away from statistical aggregation to what&rsquo;s acting as the Eurozone finance minister. Do you believe that this is what he is doing? and that this where we should be heading?

SOUNDBITE (English), Jeroen DIJSSELBLOEM, President of the Eurogroup, Some would argue that given the position where we are in the economic cycle where the output gaps are closing, that's in some countries might not be wise to stimulate further, by means of fiscal policy. But that's the kind of debate I think, the economic debate of the economic sense of where we are in the economic cycle that we will have in the Eurogroup.

SOUNDBITE (English), Jeroen DIJSSELBLOEM, President of the Eurogroup, For the economic and financial stability of the monetary union, the Banking Union is crucial. It has been a crucial step in the last couple of years, one of the most important steps in European cooperation. And we need to make sure that we finish it and have it set up firmly. In Europe we tend to build new structures, new institutions and then not complete the project, until the next crisis hits and then we find out that is not as strong as we believe it is. So, let's make it strong, let's finish it.

SOUNDBITE (French), Pervenche BER&#200;S (S&amp;D, FR), (On Greece) The question that one could raise is concerning how can we support trust and confidence i order to boost investment and growth. Do you not believe in this context that a strong signal on the debt question would be useful in order to boost the so long expected growth and investment in this country?

SOUNDBITE (English), Jeroen DIJSSELBLOEM, President of the Eurogroup, If there is no possibility for Greece and Greek people, business community etc. to carry that debt burden in the future then that will hinder future investments and spending. So we are committed to make sure that Greece can manage its debt.

SOUNDBITE (English), Jeroen DIJSSELBLOEM, President of the Eurogroup, (cont.) And we are committed to do more at the end of the programme, but there is always that conditionality. There has to be commitment from both sides and this is what I say to the members of the Eurogroup, there needs to be commitments from the side of let&rsquo;s say the creditor countries, that they will stand ready to support Greece and to make sure that Greece can manage its obligations, and there needs to be commitment from the Greek government that they will not let things get out of hand again.

SOUNDBITE (English), Brian HAYES (EPP, IE), Recently the Deputy German Finance minister said a very interesting thing to a British audience. He said that in order for the EU, the 27 to have a relationship with Britain in the future, it requires the British at least accepting all existing financial services legislation and regulations in place and an implicit recognition into the future. And if we are to have a relation with them be a pass-porting equivalence... whatever, there has to be recognition on their part that they have to accept the rules of the 27. I&rsquo;d be interested to get your views on that.

SOUNDBITE (English), Jeroen DIJSSELBLOEM, President of the Eurogroup, We cannot allow a third country to have access full pass-porting rights to financial services market in Europe if at the same time we allow them to deviate in terms of capital standards requirements, consumer protection, etc. I don&rsquo;t think that&rsquo;s possible. Which means basically that they are looking at a Norwegian model for the financial services market, which is something of course that doesn&rsquo;t appeal to the British, who&rsquo;ve decided for Brexit for reasons of sovereignty. Being quite frankly, we can&rsquo;t allow the financial service centre for Europe and the Eurozone to be outside Europe and the Eurozone and to go its own way in terms of rules and regulations requirements etc. Simply we can&rsquo;t allow that to happen.