|The Eurogroup 0f December 5th will discuss draft budgets of the euro area member states, will be briefed on the ongoing second review of the Greece’s economic adjustment programme and will adopt its work programme for the 1st half of 2017.|
Budgetary plans and prospects
At its morning session, which starts at 10.30, the Eurogroup will discuss the euro area member states’ draft budgetary plans for 2017. It will also look into the budgetary situation and budgetary prospects in the euro area as a whole.
The discussion on draft budgetary plans will be based on the European Commission’s opinions on these plans, published on 16 November.
The Commission evaluated the plans’ compliance with the rules of the Stability and Growth Pact (SGP) and assigned them to one of the following three categories:
- compliant (Germany, Estonia, Luxembourg, Slovakia and the Netherlands)
- broadly compliant (France, Ireland, Latvia, Malta and Austria)
- at risk of non-compliance (Belgium, Cyprus, Finland, Italy, Lithuania, Portugal, Slovenia and Spain)
Ministers of the member states whose plans are considered to be at risk of non-compliance will be expected to explain how they intend to meet the SGP targets.
Greece’s draft budgetary plan is not being evaluated in this exercise because it is assessed separately, as part of Greece’s ongoing macroeconomic adjustment programme.
To ensure better coordination of national fiscal policies, the euro area member states have to submit their draft budgetary plans for the European Commission’s evaluation between 1 and 15 October each year.
The Eurogroup will be briefed by the institutions on the state of play of the second review of the economic adjustment programme, following the review mission which took place mid-November.
Depending on the progress achieved in the context of the second review, the Eurogroup may return to the issue of debt-related measures and the IMF’s involvement in Greece’s programme.
The second review focuses on Greece’s budget for 2017, its medium-term fiscal strategy and the labour market reform.
Eurogroup work programme
The Eurogroup will adopt its work programme for the first half of 2017.