Home / International/ Euro zone budget to support reforms, investment with grants and loans

Euro zone budget to support reforms, investment with grants and loans

Comments / {{hitsCtrl.values.hits}} Views / Wednesday, 13 March 2019 00:00


Portugal's Finance Minister and Eurogroup President Mario Centeno, European Economic and Financial Affairs Commissioner Pierre Moscovici and Greek Finance Minister Euclid Tsakalotos attend a eurozone finance ministers meeting in Brussels, Belgium March 11, 2019 - Reuters 

BRUSSELS (Reuters): A future euro zone budget should support structural reforms and investment in euro zone countries with grants and loans, the chairman of euro zone finance ministers Mario Centeno said on Monday, summing up discussions among European Union ministers.

Finance ministers from the 27 countries that will remain in the European Union after Britain leaves are seeking ways to deepen the economic integration of the single currency area.

A future budget for the 19 countries that share the euro, and those in the waiting room to join it, is their flagship idea that is to be worked out in more detail over the next three months and fully presented in June.

“There is broad agreement that this tool should support both structural reforms and public investment,” Centeno told a news conference.

“Many of us favour an integrated approach, which would allow packages of investment programs and reform measures backed by financial support, to be proposed by members. Overall, the preferred form of delivery is via grants but there is also some support for loans,” he said. The governance of the budget is to be discussed in April and its size and revenues in the following months. It is also yet to be determined if the budget would be part of the broader long-term European Union budget, or be separate and to what extent.

“There is some support to establish as requirement that member states co-finance a portion of the investment and reform package at the national level,” Centeno said.

“There is also support to explore the possibility of reducing member states’ co-financing rates in case of severe downturns,” he said.

The European Commission and the European Central Bank say that to complete the economic and monetary union it is necessary to have pool of money to play a stabilising role in case of economic downturns to complement the single monetary policy.

The European Commission, which will ultimately have to prepare the final version of the euro zone budget proposal before it becomes EU law, has so far proposed the euro zone budget should be 55 billion euros ($ 62 billion).

Of that total, 25 billion euros would come from the EU budget and would be used to support reforms and convergence between economies while the remaining 30 billion would be loans, guaranteed by the EU budget, to support investments in countries facing temporary economic shocks.


May tells MPs: back me or lose Brexit

Share This Article

Facebook Twitter


1. All comments will be moderated by the Daily FT Web Editor.

2. Comments that are abusive, obscene, incendiary, defamatory or irrelevant will not be published.

3. We may remove hyperlinks within comments.

4. Kindly use a genuine email ID and provide your name.

5. Spamming the comments section under different user names may result in being blacklisted.


Today's Columnists

A case for reviewing plantation management

Thursday, 23 May 2019

Last week, I elaborated on ‘Going Beyond Agronomic Research for Plantation Reform’ with the aim of beginning a conversation on the importance of non-agronomic research to understand the many problematic areas that plague the plantation sector, in

How are we doing in e-government?

Thursday, 23 May 2019

It is customary to assess some aspect of the performance of a country using a composite index such as the Ease of Doing Business Index or the Network Readiness Index. For government services, there is the e-Government Development Index (EGDI), issued

National introspection in the aftermath

Thursday, 23 May 2019

“The immediate task for the Government is to guaranty the safety and security of all innocent Muslims and prevent a recurrence of 1983 … One cannot eradicate one evil with another” – Anatomy of an Islamist Infamy (III), CT, 9 May. In this, th

Dhammika Perera an anti-establishment candidate

Thursday, 23 May 2019

During the holy Vesak weekend the phones were buzzing all over Sri Lanka over a story that appeared on a web page. The story said that Prime Minister Ranil Wickremesinghe had met with business tycoon Dhammika Perera whose business empire contribute

Columnists More