| I am writing to update you on the work of Eurogroup since my last update in March, and in particular to share recent developments in relation to the Capital Markets Union.
In March, I wrote to inform you that Ministers at the Eurogroup had agreed a statement on the future of our Capital Markets Union – an ambitious set of proposals for areas where further progress is needed to deepen our capital markets. The Eurogroup was pleased that this statement was subsequently endorsed by Leaders at the March Euro Summit and that it served to spur discussion at the special European Council in April.
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The continued political interest in this topic reflects our shared understanding that we need to take urgent action to develop and deepen Europe’s capital markets so that they can meaningfully contribute to funding Europe’s future, not least the green and digital transitions.
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Paschal Donohoe, President of the Eurogroup
CMU statement – towards implementation and delivery
The Eurogroup has now turned its attention to delivering on the measures outlined in our statement, taking heed of the call from Leaders in the March 2024 Euro Summit statement to “regularly take stock of the performance and evolution of European capital markets and report on the progress of the identified measures”.
Ministers held a first discussion on delivery at the May Eurogroup meeting, where we agreed a high level work programme for further follow up. This will see us return to the topic regularly, focussing in turn on the national and EU level dimensions. This work programme has been carefully calibrated to take account of the current period of institutional renewal, with an immediate focus on driving progress at the national level, before turning to EU legislative measures following the formation of the new Commission.
Our discussions will be informed by work being driven at the technical level by our Deputies. In the short term, this work will have a specific focus on sharing of best practices and national initiatives in key thematic areas to facilitate progress at the national level. I am pleased that the first discussions on these issues have already begun.
A word on Banking Union
As we all know, the Capital Markets Union is an essential complement to our Banking Union, which still remains to be completed. In the Eurogroup’s statement on the future of the Banking Union in June 2022, we called for the strengthening of the common framework for bank crisis management and national deposit guarantee schemes (CMDI framework) as an immediate step towards completing our Banking Union. It is welcome therefore that the Council has recently agreed a negotiating mandate on the review of the CMDI framework. It is vital that further progress towards final agreement on this important file is prioritised over the coming months, with a view to enhance the efficiency of the EU resolution framework.
The Eurogroup will continue to keep its focus on delivering a deeper and more competitive Economic and Monetary Union in the months ahead. We remain deeply committed to the implementation of our statement on the future of the Capital Markets Union, and to keeping the state of our Banking Union continually under review, identifying in a consensual manner possible further measures to strengthen and complete it.
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