On Friday, the Eurogroup will convene to discuss the economic situation and fiscal consequences of COVID-19 in the euro area. The director of the European Centre for Disease Prevention and Control (ECDC), Andrea Ammon, will join the meeting and share her views on the evolution of the pandemic and its impact on the Eurozone economy.

In an effort to avoid divergences in the euro area, the European Union has deployed a massive package of fiscal measures enshrined in the recovery plan, the NextGenerationEU, and its core instrument the Recovery and Resilience Facility (RRF). Ensuring the effective operation of the European Monetary Union (EMU) is of utmost importance to strengthen the Eurozone and better prepare it for macroeconomic shocks and guarantee a stable currency. With this respect, improving the EU’s institutional governance would be a key ingredient to foster inter institutional cooperation and strengthen monetary policy.

Key Texts

Council: Recovery and Resilience Facility (RRF)

European Commission: Economic convergence in the euro area

European Parliament: Implementation of the Stability and Growth Pact under pandemic times

Upcoming Dates

10 September: Eurogroup

15 September: State of the Union Speech

European Movement International position

As outlined in our policy position A European Union Response to COVID-19, coordinated fiscal and monetary policies can serve as a protective shield by preventing bankruptcies, keeping prices stable and saving jobs, while kick-starting the economy. Moreover, the EU needs to rethink its current economic and monetary governance structures, as the Union shall be able to respond more vigorously to such symmetrical shocks as the ones provoked by the COVID-19 pandemic. With this in mind, a well-designed EU recovery, embedded in the Multiannual Financial Framework (MFF), offers a much-needed European response to a health crisis that will have an impact in the years to come. 

As we argue in our policy position on Deepening the Economic and Monetary Union, the Economic Monetary Union shall guarantee a stable currency and foster economic growth. This could only be achieved through joint steps towards a deeper Economic and Monetary Union, which should not only make the Eurozone more robust in the event of future shocks, but also support related policies such as the European Pillar for Social Rights, the implementation of the Paris Agreement, and developments towards a sustainable and just tax system.