Mário CENTENO, President of the Eurogroup discuss recent developments in the Euro area with Committee on Economic and Monetary Affairs (ECON) with topics such as the economic slowdown as well as completing the Banking Union, including the setup of the European deposit insurance scheme, likely to be raised by MEPs, in the European Parliament in Brussels. Statements by Lídia PEREIRA (EPP, PT), Mário CENTENO, President of the Eurogroup, and Jonás FERNÁNDEZ (S&D, ES).

Brussels

exchange of views

Committee on Economic and Monetary Affairs

economic dialogue (T)

FERNÁNDEZ, Jonás (S&D, ES)

European banking union (T)

CENTENO, Mário (PT)

Economic Dialogue with Mário CENTENO, President of the Eurogroup: extracts from the exchange of views

Entering the meeting room, atmosphere ahead the meeting (6 shots). 

SOUNDBITE (English), M&#225;rio CENTENO, President of the Eurogroup, The BICC, as we call it, is probably the most novel part of the EMU setup. In June and October we agreed on the main features of BICC and its financing elements. It is aimed at promoting competitiveness and convergence, but it is short sighted to take the BICC at face value. What matters the most is not what the BICC is, not even what it can become, but rather what it entails. The BICC will strengthen our framework of economic coordination. The agreed allocation key favours countries that have greater convergence and competitiveness needs, and rightly so. But all countries is all citizens in the euro area will benefit from it.

SOUNDBITE (English), M&#225;rio CENTENO, President of the Eurogroup, The revision makes precautionary instruments more accessible and gives the ESM a stronger role in adjustment programmes while also strengthening our crisis prevention framework. Importantly, the ESM will also be providing the common backstop for the Single Resolution Fund, which was a missing piece in the Banking Union. We are finalizing the relevant legal documents before we can start with the ratification of the revised the ESM treaty. This process could last until the end of 2020.

SOUNDBITE (Portuguese), L&#237;dia PEREIRA (EPP, PT), Countries like Italy, Greece and Portugal are going beyond the 3 % deficit limit. What do you think about these differences? While other countries are in surplus. How is that going to affect the instruments that we're trying to adopt for the reform of the eurozone?

SOUNDBITE (Portuguese), M&#225;rio CENTENO, President of the Eurogroup, We do have some very different situations indeed. If you look at the history of the public finances of the countries of the Eurozone, these very different histories are reflected in the indicator for public debt. That's why the treaties and the agreements identify a medium term objective, so that accounts for situations where member states can - from the moment when they achieve these medium term objectives - can allow the automatic stabilisers to work when there is an economic crisis.

SOUNDBITE (Spanish), Jon&#225;s FERN&#193;NDEZ (S&amp;D, ES), On the one hand, I can't really understand the need to look at the signing of a new intergovernmental agreement. If this instrument is going to be part of the MFF, then they should be reporting back to this Parliament. But if there is going to be another intergovernmental agreement, then we have to make sure that it is open to Parliament's scrutiny, and that we control the funds that go into it from the public budget.

SOUNDBITE (English), M&#225;rio CENTENO, President of the Eurogroup, The possibility of having an intergovernmental agreement is to decide on the overall size of the budget and not specifically to &ndash; and not really to - avoid any sort of control of the institutions over the way the money will be spent or devoted to two policies. Actually, the two key words in my view that are most important to define the novelty of BICC in the EMU will be this idea of governance and flexibility.