Eurozone Governance

Feature - 22/10/2011
Stability and sustainability: the main challenges

Significant progress has been made towards implementing decisions aimed at tackling the euro area sovereign debt crisis. A euro area summit on 23 October will assess further elements that are needed to address the situation in Greece, bank recapitalisation, and the enhanced efficiency of stabilisation instruments (EFSF).

The euro area
The main challenges
Europe, and especially the euro area, faces a number of immediate challenges in defining the policies needed to tackle the crisis.

A review is underway of instruments recently developed, such as the European Financial Stability Facility (EFSF) and the European Stability Mechanism (ESM), to assist euro area member states in difficulty. A total of 750 billion euros is available, including support from the International Monetary Fund (IMF).

As for Greece, it has put in place significant reforms.  The economic and financial situation in Greece will necessitate a further adjustment programme, including additional financial support.

The robustness of the banking sector, as a key component in ensuring economic stability and the conditions for growth in the euro area and the EU, is also being reviewed.

These challenges are interrelated and solutions must be comprehensive to be effective. And with a view to the longer term, some key reforms have been enacted.

The EU has revamped the structures used for market supervision, as well as the processes used to ensure sustainable public finances and to avoid economic imbalances in the member states. It is also strengthening financial regulation.
Balance of payments support, non euro area member states
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Agenda
Mar
31
Informal ECOFIN meeting
Copenhagen
May
14
Eurogroup meeting
Brussels
May
15
ECOFIN meeting
Brussels
Jun
21
Eurogroup meeting
Luxembourg
Jun
22
ECOFIN meeting
Luxembourg
Key events
key events