The Ministers of Economy and Finance of the European Union are meeting in Brussels to look at some important matters, including systematically important financial institutions, the situation of Greece's public finances and the nomination of the future "number two" of the European Central Bank.

After the co-ordinated action of the European Union to keep the financial system afloat during the crisis, some Member States consider that the moment has arrived for large banks to assume their share of the liability for the costs incurred by society. How to ensure that financial institutions provide reliable services to the public and to businesses and the advisability of introducing a European bank tax to gain protection from future crises and safeguard public finances are questions that are expected to arise during the Ecofin Council meeting.

Situation of public finances in Greece

The ministers will examine the updated stability programme presented by the government of George Papandreu, which includes a commitment to reduce the public deficit to below 3 per cent by 2012, in line with the European Stability and Growth Pact. The Greek government has also agreed to reduce its deficit this year by four percent of GDP, from 12.75% to 8.70%.

In exchange, it has received the assurance of its Eurozone partners that it will not allow the Greek state to go bankrupt from lack of financing. The Council is now ready to approve a recommendation of the European Commission to strengthen the monitoring of Greece's public accounts. The Council will also review the excessive deficit procedures opened for Lithuania, Malta, Romania, Latvia, Hungary and Poland.

Nomination of a new Vice-president of the European Central Bank

The Council is expected to make a recommendation on the nomination of the new Vice-president of the European Central Bank to succeed Lucas Papademos, whose term of office expires on 31 May. The recommendation of the Council will be submitted to approval by the European Council in March, after consulting the European Parliament and the ECB Governing Council. There are three candidates for the office which the Euro Group must select from before the Council formalises its decision. 

Development of the single market

On the agenda of the Council is the adoption of conclusions on the further development of the EU's single market, especially in relation to the implementation of a directive aimed at removing legal and administrative barriers to the provision of services, a sector which represents 60-70% of the economic activity in the European Union. The directive was adopted in December 2006 with the deadline for its implementation set for 28 December 2009, but not all of the Member States have complied.