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Eurogroup

The Eurogroup, a rather informal yet undeniably significant body, comprises the finance ministers of the eurozone—those select member states of the European Union who've bravely (or perhaps foolishly) embraced the euro as their official currency. It's a gathering of twenty minds, ostensibly focused on wielding political control over this shared currency and the intricate machinery of the EU's monetary union, including the ever-so-rigid Stability and Growth Pact. Currently, the baton of outgoing president rests with Paschal Donohoe, formerly the Minister for Finance of Ireland.

These ministers convene in a rather discreet fashion, a sort of "in camera" affair, typically the day before the full Economic and Financial Affairs Council (ECOFIN) convenes under the auspices of the Council of the European Union. Their pronouncements, when they deign to make them, are filtered through press and document releases. The group's relationship with the broader Council is, let's say, nuanced; only those nations wielding the euro are permitted to cast votes on euro-specific matters within ECOFIN. This whole arrangement, the Eurogroup's existence, was eventually codified, however loosely, by the Treaty of Lisbon.

History

The Eurogroup, which at various points was whimsically referred to as Euro-X or Euro-XI, depending on the then-current number of euro adopters, emerged from a French suggestion. It was conceived as a platform for policy coordination and consultation concerning eurozone affairs. The European Council gave its blessing to this arrangement in December 1997, and the inaugural meeting took place on June 4, 1998, at the somewhat evocative Senningen Castle in Luxembourg.

Initially, the rotating presidency of the Eurogroup mirrored that of the rotating presidency of the Council of the European Union. However, a complication arose when a non-eurozone country held the Council presidency; in such instances, the honor (or burden) passed to the next eurozone country slated for the Council presidency. By 2004, the ministers decided to move beyond this somewhat arbitrary system and elect their own president. A significant, if irregular, development occurred in 2008 when the group convened a summit of heads of state and government, rather than just the finance ministers, a practice that became more frequent during the tumultuous 2008 financial crisis and evolved into what is now known as the Euro summit.

From the nascent stages of the monetary union, the Eurogroup's influence has steadily expanded, particularly in the realm of economic governance. Its strategic placement, meeting just before ECOFIN, effectively allows it to pre-approve decisions concerning the eurozone, a considerable concentration of power. The Treaty of Lisbon, in 2009, finally provided a formal, albeit still rather minimalist, legal framework for the group and its president.

Organisation

President

The current, and indeed rather enduring, president of the Eurogroup is Paschal Donohoe, who previously held the esteemed position of Minister for Finance in Ireland.

A pivotal shift occurred in September 2004 when the Eurogroup agreed to institute a semi-permanent presidency, with a two-year term. The first to occupy this newly formalized role was Jean-Claude Juncker, then Minister of Finance and later Prime Minister of Luxembourg. His tenure began on January 1, 2005, and extended through December 31, 2006, with a subsequent re-appointment for a second term in September 2006. The Lisbon Treaty cemented this arrangement, with Juncker continuing his presidency. This presidential role has been instrumental in bolstering the group's standing; prior to its creation, the Eurogroup's presence in the European Parliament was largely peripheral. With a dedicated president, engagement increased, including semiannual appearances before the European Parliament Committee on Economic and Monetary Affairs.

In January 2010, Juncker, having been reappointed, stressed the need for the Eurogroup to broaden its mandate, particularly in coordinating economic policies and presenting a unified front. He even proposed the establishment of a small secretariat, comprising four or five civil servants, to manage the group's preparatory work. While France and Spain were reportedly supportive, Germany harbored concerns that such a move might encroach upon the independence of the European Central Bank. By June 2012, Jürgen Ligi, Estonia's finance minister, was being considered as a potential successor. However, in January 2013, Juncker hinted that Jeroen Dijsselbloem of the Netherlands was the more likely candidate, and indeed, Dijsselbloem was appointed the second president on January 21, 2013. He was subsequently re-elected on July 13, 2015.

More recently, on July 9, 2020, Paschal Donohoe of Ireland was elected as the fourth President of the Eurogroup, commencing his term on July 13, 2020. His tenure was extended with a re-election on December 5, 2022, for a second term beginning January 13, 2023. He then secured a third term, commencing July 13, 2025. Following Donohoe's departure to assume a role at the World Bank, Makis Keravnos stepped in as acting President until a successor could be elected.

Here's a brief chronicle of the presidents:

Members

The high-ranking officials who also grace the Eurogroup meetings with their presence include the ECB President, the Economic and Monetary Affairs Commissioner, and the Chairman of the Eurogroup Working Group. As for EU members who have opted out of the Eurozone, their participation is strictly as observers, if at all. The membership, however, is not entirely static; personnel from the IMF have occasionally been granted permission to attend sessions. The precise protocol regarding whether these observers are permitted to speak, or if their silence is mandated, remains something of an open question.

Member Representing Political party Member since
Simon Harris Ireland European People's Party / Fine Gael 18 November 2025
Markus Marterbauer Austria Party of European Socialists / Social Democratic Party of Austria 3 March 2025
Vincent Van Peteghem Belgium European People's Party / Christian Democratic and Flemish 1 October 2020
Marko Primorac Croatia Independent 15 July 2022
Makis Keravnos Cyprus Progressive Alliance of Socialists and Democrats / Democratic Party (Cyprus) 1 March 2023
Jürgen Ligi Estonia Alliance of Liberals and Democrats for Europe Party / Estonian Reform Party 23 July 2024
Riikka Purra Finland European Conservatives and Reformists Party / Finns Party 20 June 2023
Roland Lescure France Independent / Renaissance (French political party) 5 October 2025
Lars Klingbeil Germany Party of European Socialists / Social Democratic Party of Germany 6 May 2025
Kyriakos Pierrakakis Greece European People's Party / New Democracy (Greece) 15 March 2025
Giancarlo Giorgetti Italy Patriots.eu / League (political party) 22 October 2022
Arvils Ašeradens Latvia European People's Party / Unity (Latvia) 14 December 2022
Kristupas Vaitiekūnas Lithuania Party of European Socialists / Social Democratic Party of Lithuania 25 September 2025
Gilles Roth Luxembourg European People's Party / Christian Social People's Party 17 November 2023
Clyde Caruana Malta Party of European Socialists / Labour Party (Malta) 22 November 2020
Eelco Heinen Netherlands Alliance of Liberals and Democrats for Europe Party / People's Party for Freedom and Democracy 2 July 2024
Joaquim Miranda Sarmento Portugal European People's Party / Social Democratic Party (Portugal) 2 April 2024
Ladislav Kamenický Slovakia Independent (Party of European Socialists suspended) / Direction – Social Democracy 25 October 2023
Klemen Boštjančič Slovenia Renew Europe / Freedom Movement (Slovenia) 1 June 2022
Carlos Cuerpo Spain Independent 29 December 2023

Observers:

Legal Basis

Before the Lisbon Treaty came into effect on December 1, 2009, the Eurogroup operated without a formal legal foundation. The treaty, however, provided this through Protocol 14, which outlines the group's governance in just two articles:

  • Article 1: "The Ministers of the Member States whose currency is the euro shall meet informally. Such meetings shall take place, when necessary, to discuss questions related to the specific responsibilities they share with regard to the single currency. The Commission shall take part in the meetings. The European Central Bank shall be invited to take part in such meetings, which shall be prepared by the representatives of the Ministers with responsibility for finance of the Member States whose currency is the euro and of the Commission."
  • Article 2: "The Ministers of the Member States whose currency is the euro shall elect a president for two and a half years, by a majority of those Member States."

Furthermore, the treaty amended the Council of the EU's rules, stipulating that in ECOFIN votes on matters exclusively concerning the eurozone, only the member states utilizing the euro are allowed to vote. This deliberately informal structure has, predictably, been a source of considerable controversy, criticism, and debate regarding the overall governance of the monetary union.

Criticism Against the Eurogroup

The Eurogroup's existence, characterized by its minimal legal grounding, has rendered it largely an informal entity with extensive discretionary powers. While this informality may have facilitated decisive action during the euro crisis, it has also led to a notable lack of accountability and limited democratic oversight. Consequently, a growing chorus of critics from various stakeholders has raised concerns about the Eurogroup's inherently undemocratic aspects.

In 2017, Commissioner Pierre Moscovici rather pointedly described the Eurogroup as "a pale imitation of a democratic body." Similarly, former Greek finance minister Yanis Varoufakis vociferously condemned its "outrageous opacity." This lack of transparency within the Eurogroup was a significant catalyst for the formation of the DiEM25 movement, which advocates for the "re-democratization of Europe." Even the NGO Transparency International has consistently called for a restructuring of the Eurogroup's governance. The European Ombudsman has also initiated an inquiry into the matter, demanding greater transparency.

Among the specific democratic shortcomings frequently highlighted are:

  • The Eurogroup's failure to publish minutes or agenda documents from its meetings, contributing to its largely informal proceedings.
  • Potential conflicts of interest arising from the Eurogroup chair's dual role, representing both their national government and the Eurogroup as a whole.
  • The perceived domination of decision-making by a select few countries or the "Troika" (European Commission, European Central Bank, and International Monetary Fund).
  • A distinct absence of accountability towards the European Parliament.

Possible Evolution of the Governance of the Eurogroup

Economic Government for the Eurozone

During the throes of the 2008 financial crisis, French President Nicolas Sarkozy, speaking from the floor of the European Parliament as the outgoing president of the European Council, advocated for the replacement of the Eurogroup with a "clearly identified economic government" for the eurozone. He argued that the eurozone could not continue to function without such a body, which would engage in discussions with the independent European Central Bank.

This proposed government would take the form of regular meetings of eurozone heads of state and government, akin to the European Council, rather than the current assembly of finance ministers. Sarkozy asserted that "only heads of state and government have the necessary democratic legitimacy" for such a role, drawing inspiration from the 2008 meetings of eurozone leaders who convened to forge a coordinated response to the banking crisis. This vision stood in contrast to an earlier proposal by former Belgian Prime Minister Guy Verhofstadt, who envisioned the European Commission playing a leading role in a new economic government, a prospect likely to be met with resistance from more cautious, less integrationist states. Sarkozy's proposal, however, encountered opposition from Eurogroup chair Jean-Claude Juncker, who deemed Europe not yet ready for such a significant leap, and ultimately, German opposition effectively stalled the initiative. While Angela Merkel was amenable to the concept of an economic government, she preferred it encompass the entire EU, fearing that a eurozone-specific entity could fracture the Union and relegate non-eurozone states to a secondary status. In his 2011 State of the Union address, Commission President José Manuel Barroso voiced his opposition to the Franco-German intergovernmental plan, arguing that the existing community institutions should assume such responsibilities.

A Eurozone Finance Minister

In 2017, a confluence of voices, including Pierre Moscovici, Emmanuel Macron, Angela Merkel, and Jean-Claude Juncker, called for the Eurogroup to be formally headed by a dedicated Eurozone finance minister. This role could potentially be merged with that of the European Commissioner for Economic and Monetary Affairs and the Euro, thereby formalizing the Eurogroup as a distinct branch of the European executive.

Commissioner Pierre Moscovici posited that such a position would imbue European politics with "more democratic legitimacy" and "more efficiency." In his view, the competencies of the Economy and Finance Commissioner should be combined with those of the President of the Eurogroup. The primary mandate of this minister would be to "represent a strong political authority protecting the economic and budgetary interests of the euro area as a whole, and not the interests of individual Member States." According to the Jacques Delors Institute, the minister's responsibilities could be centered on overseeing the coordination of economic and budgetary policies.

Former ECB President Jean-Claude Trichet suggested that this minister could leverage the Eurogroup Working Group for meeting preparation and follow-up, and the Economic and Financial Committee for broader EU discussions. He also proposed that a General Secretariat of the euro area treasury would fall under this minister's purview, tasked with advancing the objectives of the nascent budgetary union. This proposal, however, was ultimately rejected by the Eurogroup in December 2017. Critics argued that a more pragmatic solution would be to establish a permanent role for the Eurogroup President, rather than relying on the current system where national finance ministers rotate through the presidency while simultaneously managing their national portfolios.

International Representation to the IMF and the G20

On April 15, 2008, Jean-Claude Juncker, then president of the Eurogroup, suggested that the eurozone should present a unified front at the International Monetary Fund, rather than individual member states acting independently. He famously quipped, "It is absurd for those 15 countries not to agree to have a single representation at the IMF. It makes us look absolutely ridiculous. We are regarded as buffoons on the international scene." However, Finance Commissioner Joaquín Almunia countered that a common political agenda should precede common representation. By January 2010, Juncker indicated that the Commission intended to propose that the group join the G20.

Other Controversies

Lack of Transparency

The Eurogroup has frequently been the target of criticism due to its informal nature, which subsequently fosters a lack of transparency and accountability.

The Cypriot Banking Crisis

During the severe economic crisis in Cyprus in 2013, the Eurogroup played a pivotal role in implementing the first major "bail-in" of the Cypriot banking sector. This involved the confiscation of deposits from two of the island's largest banks. Despite a perceived lack of clear visibility into the banks' financial standing and balance sheets, the Eurogroup sanctioned the use of depositor funds for the bail-in. While the process was complex and its ultimate completion debated, it drew significant criticism from some quarters within the EU as an infringement on private property rights.

Jeroen Dijsselbloem's Comments

In March 2017, Jeroen Dijsselbloem, then president of the Eurogroup, made remarks to the German newspaper Frankfurter Allgemeine Zeitung that ignited a firestorm of controversy. While discussing the European Debt Crisis and its impact on Southern European countries, he stated, "As a Social Democrat, I attribute exceptional importance to solidarity. But those who call for it also have duties. I cannot spend all my money on drinks and women and then hold my hand up for help. That principle applies on a personal, local, national and also on a European level."

These comments elicited strong rebukes from numerous European figures. Gianni Pitella, leader of the Socialist group in the European Parliament (to which Dijsselbloem's party, the Labour Party (Netherlands), belongs), declared, "There is no excuse or reason for using such language, especially from someone who is supposed to be a progressive." Manfred Weber, the leader of the European People's Party group, tweeted, "Eurozone is about responsibility, solidarity but also respect. No room for stereotypes." The Portuguese Prime Minister, António Costa, characterized Dijsselbloem's remarks as "racist, xenophobic and sexist" and asserted that "Europe will only be credible as a common project on the day when Mr. Dijsselbloem stops being Head of the Eurogroup and apologises clearly to all the countries and peoples that were profoundly offended by his remarks." Former Italian Prime Minister Matteo Renzi also called for Dijsselbloem's resignation, stating, "If he wants to offend Italy, he should do it in a sports bar back home, not in his institutional role."

In his defense, Dijsselbloem stated, "Everyone knows that I didn’t say that all southern Europeans spend their money on drinks and women. That’s not what was in the interview and it wasn’t my message. The anger about the interview is anger about eight years of policies to deal with the crisis. [...] I would have rephrased it otherwise probably. But it was my way of making clear that solidarity is not charity. It's not for nothing that the aid programs of the European emergency fund are accompanied by strict conditions: You get very cheap loans provided you take action to restore order. That is an important principle. For the ones who keep zooming in on those two words my message might be inconvenient. [...] It won't end well with the eurozone if we keep breaking our previous agreements. [...] My choice of words was not right, I'm sorry if you took offense, but I'm still behind the message." He later reiterated that he stood by the core message, even if the phrasing could have been better.

See also