Main results

Regular format (euro area countries)

COVID-19: challenges in the euro area and global economy

The director of the European Centre for Disease Prevention and Control (EDCD), Andrea Ammon, was invited by the Eurogroup President to inform ministers on the evolution of the COVID-19 pandemic.

Ministers exchanged views with the chair of the European Parliament’s Economic and Monetary Affairs Committee, Irene Tinagli, on the economic developments and policy challenges facing the euro area member states.

The Eurogroup issued a statement on COVID-19 developments.

I am convinced that the unity of purpose we have seen since the start of the crisis will see us through these challenging times. This unity of purpose will also be important to finalise an agreement on the Recovery and Resilience Facility, which is an urgent priority for all of us because of its crucial importance in supporting economic recovery in the coming years.

Paschal Donohoe, President of the Eurogroup

The euro as a digital currency

Ministers held a strategic discussion on the benefits and challenges of a possible future introduction of a digital euro. This is one of the priorities included in the Eurogroup work programme.

A European Central Bank report of October 2020 served as input to the discussion.

We encourage the ECB to pursue its work in relation to models and options for the possible issuance of a digital euro.
In the meantime, (…) we will consider implications of the project on our monetary sovereignty, financial stability, bank funding, consumer protection and on the international role of the euro.

Paschal Donohoe, President of the Eurogroup

Banking union format

The Eurogroup held its first meeting in ‘banking union format’, with members of EU’s banking union. These are currently the 19 euro area countries and Bulgaria and Croatia, who joined the banking union last July.

Banking union operational aspects

The chair of the European Central Bank Supervisory Board, Andrea Enria, presented the supervisory tasks carried out by the ECB banking supervision since the last report in June 2020. He focused on:

• the impact of the COVID-19 on banks and measures adopted
• brexit
• climate risk

The chair of the Single Resolution Board (SRB), Elke König, briefed the Eurogroup on the SRB’s recent activities. In particular, she focused on the response to the COVID-19 crisis and updated the Eurogroup on the progress made on:

• resolution planning
• minimum requirements for own funds and eligible liabilities (MREL)
• resolvability
• build-up of the Single Resolution Fund (SRF)

Inclusive format (EU 27)

COVID-19 safety nets: state of play 

Ministers took stock of progress with the implementation of the three safety nets agreed at the Eurogroup videoconference of 7-9 April 2020:

• Support to mitigate Unemployment Risks in an Emergency (SURE) has been granted to 17 member states and the Commission successfully issued its first bonds on the financial markets
• EIB’s pan-European Guarantee Fund became operational over the summer and the first operations have been approved
• ESM Pandemic Crisis Support credit line is in place and will be available as a backstop for sovereigns until the end of 2022