The Vice-President of the European Commission in Charge of the Euro, Social Dialogue, Financial Stability, and Financial Services Valdis Dombrovskis urged the 28 members of the bloc to finalise a package of long-needed reforms for the Eurozone to secure and better protect the European Monetary Union (EMU) in a crisis.
“We urge them to make progress,” said Dombrovskis, “especially since we are approaching a more difficult economic period.”
Finance ministers must lay the groundwork for a meeting of EU leaders on 21 June in Brussels where they are expected to discuss any progress that still needs to be made, including strengthening the prerogatives of the European Stability Mechanism (ESM) that was created in 2012 in the midst of the debt crisis.
A draft treaty on the ESM’s new role is yet to be tabled by the working group, that has taken over the painful labour of translating the reform in to a legal text.
At the meeting, the Eurozone ministers are expected to move forward on the Banking Union, which, despite being launched seven years ago, is still not fully completed.
“Unfortunately, for this project, a stalemate is still there with no tangible progress made.” A major contributor to the inertia has been affected by the role Germany has played in the process. Berlin has dragged their feet when it comes to the creation of a European Deposit Guarantee Scheme (EDIS), fearing that its depositors will pay for banks in southern countries, such as in Italy.