Economic and Monetary Union: Eurogroup agrees term sheet on euro-area budgetary instrument and revised ESM treaty

Source: Eurogroup i, published on Saturday, June 15 2019.

Following the mandate received by EU leaders at the 14 December Euro Summit, the Eurogroup in inclusive format discussed and took decisions on deepening of the Economic and Monetary Union (EMU).

Our aim was to deliver on three key areas ahead of the Euro Summit: the budgetary instrument, the ESM Treaty and Banking Union. More work is needed, but we made real progress.

Mário Centeno, President of the Eurogroup

Ministers agreed on:

  • a term sheet describing the main features of the budgetary instrument for competitiveness and convergence.
  • a revised ESM treaty draft, covering issues such as the common backstop for bank resolution, the precautionary instruments as well as institutional aspects and the issue of cooperation between the ESM and the European Commission within and outside programmes.

Both documents, together with a cover letter from the President of the Eurogroup summarising all the main elements of the Eurogroup's discussion on the EMU reform, have been submitted to the President of the European Council, in preparation of the Euro Summit of 21 June.