Deepening the EMU: the role of the European Stability Mechanism

The Eurogroup discussed the possible future roles and tasks of the European Stability Mechanism (ESM) in the context of the ongoing broader debate on the future of the Economic and Monetary Union. 

This initial discussion focused on the ESM's possible role in crisis management and in relation to the banking union, as well as on how this possible new role would affect its governance structure and its place within the EMU setup. 

Thematic discussions on growth and jobs: financing labour tax cuts

Ministers exchanged views on and shared national best practices in financing labour tax cuts. The Eurogroup is expected to discuss the subject again later this year, in the context of its annual review of euro area member states' draft budgetary plans for the coming year.

Reducing the tax burden on labour has been recommended to the euro area in the context of the European Semester, the EU's annual policy coordination process. The tax wedge on labour in the euro area is among the highest in the world, and reducing it could contribute to economic growth and job creation. How to finance labour tax cuts is therefore an important question, as labour tax constitutes a significant share of government revenues in a number of euro area countries. 

Post-programme surveillance mission to Portugal

The European Commission, the European Central Bank, the European Stability Mechanism and the International Monetary Fund informed the Eurogroup about the results of the sixth post-programme surveillance mission to Portugal. The mission took place from 26 June to 4 July 2017. 

The main findings of the mission were positive. Portugal's economic and financial situation continues to improve, and its medium to long-term capacity to repay its debt remains favourable. 

Eurogroup website

Remarks by Jeroen Dijsselbloem following the Eurogroup meeting of 9 October 2017