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Eurogroup
A monthly meeting of eurozone finance ministers
The Eurogroup is not an organization or an institution, it is
euroland
The monthly meetings of finance ministers are designed to provide a platform for economic policy coordination among eurozone members. The main task of the Eurogroup president is to preside over the monthly meetings of eurozone finance ministers.
- Chinese name
- Eurogroup
- connotative
- A monthly meeting of eurozone finance ministers
- chairmanship
- Chair the monthly meeting of eurozone finance ministers
- nature
- clique
- Seat of honour
- PASCAL Donohue [6]
catalogue
Since only some EU member states joined the euro zone, the Eurogroup was created to discuss some issues among eurozone members first, resulting in the practice of meeting the night before each monthly meeting of EU finance ministers.
Although with the continuous expansion of the euro area, the economic power continues to grow, the influence of the euro group is also rising, but before the euro group is "real nameless", can not find any legal basis for its existence in the EU treaty, until the Lisbon Treaty officially recognized the euro Group, and determined the president of the office for two and a half years.
European Commission responsible for economic and monetary affairs Commissioner Almunia said at a press conference after the day that Juncker was only an "informal" president for the past four years, and only today has a "formal" title.
However, according to the
Lisbon Treaty
The Eurogroup will remain informal, meaning that it will only discuss and not take decisions, and all decisions will still be adopted at the meeting of EU finance ministers.
Although the Eurogroup presidency has little real power, Juncker has shown considerable ambition to expand the Eurogroup's role on the international stage and to achieve a greater role for eurozone countries
International economic organization
One of the main objectives of his term was to have a seat for the party.
European Central Bank President Mario Draghi
'In line with the international role of the euro, the international representation of the Eurogroup should be strengthened,' Mr. Juncker said. 'In particular, the Group of 20 should give the Eurogroup a seat.' He said that after the financial crisis, the role of the G7 group of Western developed countries has declined significantly, while the role of the G20 group of developed and major developing countries has become more prominent, but the Eurogroup has no seat in it. Mr Juncker revealed that the European Commission was ready to put forward proposals to give the Eurogroup a seat in the G20. He argued that eurozone countries should strengthen their position coordination in the future and speak with one voice, only in this way can the interests of the eurozone be fully reflected in international consultations.
Eurogroup President Mario Centeno
[1]
European Commissioner for Economic and Monetary Affairs
Almunia
Eurogroup president's comments hurt the euro
Cyprus reached a preliminary agreement with three international parties on Monday to slash the size of its banking sector in exchange for a 10 billion euro bailout. The preliminary agreement sent the euro higher in early Asian trading on Monday, but the euro reversed course in the European and U.S. hours, when the Eurogroup president's comments dropped a bombshell on financial markets. The euro fell about 200 points in the short term.
Eurogroup Chairman Jeroen Dijsselbloem said in an interview with the media on the same day that he believes the Cyprus bailout package should be a so-called template, after the weekend finalized the plan will be effective in the future to reduce the euro zone banks may face new risks. He argued that banks in trouble should choose to bail themselves out, and if that does not work, the next loss should be borne by the bank's shareholders and creditors, if not, by uninsured depositors, and finally by the taxpayers of the European Union and its member states.
The president of the Eurogroup said
Bank of Cyprus
There was some risk aversion that the restructuring should be a model for the rest of the euro zone, although the chairman later clarified his comments, stressing that Serbia was in a unique situation and that aid packages should be based on reality and not be a template for other countries. But it has hurt the euro, while rumors of an Italian rating downgrade and an expected rate cut by the European Central Bank all pose downside risks to the euro.
Mr. Dijsselbloem did not say that the Cyprus bailout should be a so-called template. What he meant to say was that the rescue plan is tailored to different situations and there is no template, but that the market panic is too much to stop. The market was spooked by talk that it was a template for future banking restructurings, and fears of contagion were raised after the Cyprus bailout became a template from an exception.
Market fears that a savings tax could trigger a transfer of funds from peripheral Europe to banks in Germany or the United States are a real Cyprus contagion risk. Although Dijsselbloem later clarified and moderated his earlier remarks, markets have interpreted this as suggesting that private sector self-help will play a large role in future rescues.
The euro could fall further on concerns about the outlook for European debt
The market believes that concerns about the economic downturn in the euro zone, political uncertainty in Italy and the prospect of interest rate cuts by the European Central Bank in the coming months are expected to weigh on the euro, and investors are focusing on economic growth in European countries, and structural problems will continue to plague the growth rate of euro zone countries. The Cyprus crisis is just a short-term hot button event affecting market trading, the real problem will go back to fundamentals, the euro will be dragged down by weak economic growth.
The central bank announced late Monday that commercial banks in Cyprus would not reopen until Thursday, after previously saying it would allow some banks to reopen on Tuesday. The central bank of Cyprus announced in a statement that in order to maintain the smooth functioning of the entire banking system, all banks in the country will remain closed.
The Cypriot government is currently working on measures to impose temporary capital controls until banks open to prevent capital flight. Although the Cyprus bailout agreement was finally reached, the negative impact of the incident on market sentiment may still not be easily erased.
Bank of Cyprus
After the doors open on Thursday, fears could still spark a run on banks.
Italy is still no progress on the formation of the government, the leader of Italy's center-left coalition Pier Luigi Bersani said overnight that it will be until Thursday to report to the president on the formation of the government process. The Italian finance ministry declined to comment on rumors that ratings agency Moody's could downgrade Italy's sovereign debt rating later, and uncertainty over the formation of a government in Italy could also limit gains in the euro.
In addition, Bernanke said in his speech that the current situation in the eurozone highlights the enormous difficulties in running a single currency between many different countries, which will be a valuable lesson for future generations. The history of the European debt crisis has once again raised tough questions about how big a single currency area should be.
He said that while it was true that the eurozone as a single currency union had achieved considerable success in many areas, such as the European Central Bank in keeping inflation low, the eurozone's management still had considerable work to do in narrowing the differences in economic competitiveness among the currency area's members and reconcining the inconsistencies of economic cycles.
With the European Union already aiming for a Europe-wide banking union, Bernanke argued, much of the trouble might have been avoided if it had also set up a so-called monetary union instead of rushing to a single currency.
[2]
Dutch Finance Minister Jeroen Dijsselbloem, who chairs the Eurogroup of finance ministers, said on Tuesday that a deposit tax was a "yes"
Cyprus
A key part of the aid package, but the controversial measure will not be used in other countries.
Dijsselbloem told lawmakers in the Dutch parliament that a deposit tax on depositors was an inevitable step, given Cyprus's large banking system and the fact that the Cypriot government could not bail out domestic banks on its own, but that it would not happen in other countries.
He said a rescue plan without a deposit tax was not feasible. He also said the current aid package will keep Cyprus away from the abyss.
Dijsselbloem reiterated that the deposit tax would raise 5.8 billion euros ($7.5 billion). He said the measure should seek to exempt small savers from tax liability, but with deposits of up to 100,000
Euro
The following or above accounts are taxable.
He said many wealthy people split their savings into several accounts, making each account less than the 100,000 euro threshold.
[3]
Eurogroup President: PASCAL Donoghue
[6]
European Central Bank President Christine Lagarde talks with European Commission Commissioner for Economic Affairs Paolo Gentiloni during a Eurogroup meeting in Brussels, Belgium, March 14, 2022. The Eurogroup meeting was held in Brussels, Belgium.
[4]
On June 16, 2022, the Eurogroup approved the proposal of the finance ministers of the 19 member states for Croatia to officially adopt the euro. According to the proposal, Croatia will adopt the euro from January 1, 2023, thus becoming the 20th member of the Eurogroup.
[5]
