Greek bailout tops ECOFIN meeting agenda

Eurozone finance ministers gathered in Brussels with the main point on their agenda being an agreement to release a long-delayed €31.5 billion aid payment for Greece, which is expected to be reached next week.

The euro zone's two largest economies, Germany and France expressed confidence that a political solution to Greece's financing needs could be reached next week, though acknowledging that the debt-laden country still needs to take some measures.

The Economic and Financial Affairs Council (ECOFIN) meeting held on Tuesday also discussed ongoing measures to strengthen the financial and economic architecture of the EU. Malta's delegation was led by the Permanent Representative to the European Union, Ambassador Marlene Bonnici, who was accompanied by the Permanent Secretary in the Ministry of Finance, the Economy and Investment, Alfred Camilleri.

The meeting also discussed three important legislative dossiers: A proposal for a Financial Transaction Tax; proposals for the so-called 'two-pack' on economic governance; and the establishment of a Single Supervisory Mechanism for the banking sector.

 The meeting addressed progress in negotiations on proposals aimed at establishing a Single Supervisory Mechanism (SSM) for credit institutions in both the Eurozone as well as in other Member States choosing to participate.

A statement issued by the Finance Ministry pointed out that Malta stated that it is important to create the right incentives and safeguards in order to encourage non-Euro area States to participate.

"In this regard, Malta stated that it looks forward to explore the possibility of widening the representation of the non-Eurozone Member States within the maximum legal space that is allowed by the Treaty."

The Maltese delegation also noted that the voting modalities need to be the same as those currently used in the Governing Council of the European Central Bank (ECB).

Malta also highlighted the importance to define the functions of the National Supervisory Authority and the ECB so each Authority would know where its respective responsibilities lay. Furthermore, the statement said that Malta expressed its concerns on the exclusive competence of the ECB with regard to authorisation and withdrawal of banking licenses as well as that the proposal that the ECB could impose capital buffers.

"Malta stated that ways must be found to recognise the role of national authorities should have on authorisation/withdrawal and on macro-prudential tools."

Turning to two proposals for draft regulations on economic governance known as the 'two-pack', the meeting was informed of the negotiations with the European Parliament and discussed options for moving forward in order to reach an agreement.

The 'two-pack' is composed of a proposal for a regulation for enhancing the assessment of draft budgetary plans of euro area States, particularly those subject to an Excessive Deficit Procedure, and a draft regulation on enhanced surveillance of euro area Member States that are experiencing severe financial disturbance.

Delegates were also updated on developments with regard to a proposal for a Council Authorising Decision which was submitted by the Commission for the introduction of a Financial Transaction Tax (FTT) for 11 Member States under a process that is known as 'enhanced cooperation'.

Malta stated that whilst it is not opposed to the idea of an FTT being introduced by enhanced cooperation in some Member States, it is important that more information is made available in order to assess how this may impact the non-participating Member States.