Finance ministers of the Eurozone discuss single supervisory mechanism

The single supervisory mechanism, the second review of Greek financial aid program and the development of Spain and Cyprus after their rescue programs, as well as inflation, have set the agenda for the meeting of finance ministers of the Eurozone today. The single supervisory mechanism is a key pillar of the banking union, which target is to ensure the stability of the banking sector in the community. The mechanism is a supranational body and carry out its functions in cooperation with the national supervisory authorities of the EU banking system and the European Central Bank.

Later today, the eurozone finance ministers will hear the representative of the Supervisory Board of the ECB Daniele Nouy on the activities of the single supervisory mechanism since April.

Regarding Greece, the ministers will review the received information on the results of the country. The new mission of the institutions is in relation with the second review of the program. The hopes of Athens are within these negotiations to start also the talk on remission of part of the country’s debts. In mid-November Greece will be visited by the US President Barack Obama. The expectations are that his visit is connected with the requested support for sustainable management of debts.

The programs for Spain and Cyprus have already been concluded and countries do not need more loans to stabilize their economies. However, the monitoring by the Eurogroup will end once the countries pay at least 75% from the granted loans.

The European Commission and the ECB will also report the valuation of current changes in inflation in the Eurozone.

Tomorrow, in Brussels there will be held a meeting of the Financial Affairs (Ecofin), which involves all the finance ministers of the EU. In their agenda are enshrined discussions on corporate taxation, updating rules on fiscal governance and value added tax (VAT) in the community.

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