Latest news with #Cuerpo
Irish Post
08-07-2025
- Business
- Irish Post
Paschal Donohoe wins third term as Eurogroup president
IRELAND'S Finance Minister Paschal Donohoe has been unanimously re-elected as president of the Eurogroup after both of his challengers dropped out of the race just before the vote. The election by eurozone finance ministers in Brussels, grants Donohoe a third consecutive term leading the body, which is responsible for coordinating economic policy across the 20 countries that use the euro. "I am grateful to my fellow ministers for the trust that have placed in me to continue leading our important work for a third term," Donohoe said after his reelection. Spains economy minister Carlos Cuerpo, widely seen as Donohoe's strongest competition, withdrew earlier in the day after acknowledging he lacked the votes to win. "We tried to build support, including over the weekend, but we couldn't reach the necessary threshold of 11 votes," Cuerpo said in a public statement. Shortly afterwards, the Lithuanian Finance Minister Rimantas Sadzius also pulled out of the race. While Cuerpo and Sadzius wanted a more dynamic approach to economic policy, Donohoe was known for building consensus among his peers. The Eurogroup president plays a key role in shaping eurozone economic strategy. Although the role is unofficial within EU treaties, it carries considerable influence in EU economic governance. See More: EU, Eurogroup, Finance Minister, Pascal Donohoe
Euractiv
07-07-2025
- Business
- Euractiv
Spain's Cuerpo, Lithuania's Šadžius pull out of Eurogroup race
Spanish economy minister Carlos Cuerpo and Lithuania's finance minister Rimantas Šadžius have pulled out of the race to become the next Eurogroup chair, paving the way for Irish incumbent Paschal Donohoe to be re-elected head of the powerful group of eurozone finance ministers later today. 'After intense days gathering numerous supports among finance ministers of the Eurogroup, and after recent contacts in the last hours, it has been found that the support for Minister Cuerpo does not reach the necessary majority to guarantee the success of the candidacy,' the Spanish economy ministry said in a statement released on Monday. 'In the current context of great challenges for the Eurozone, it is necessary to promote unity and avoid fragmentation within the Eurogroup, a key body for economic decision-making in the union. Therefore, in an exercise of responsibility, the minister has decided to step aside to favour a choice based on consensus,' it added. Shortly after Cuerpo's withdrawal, Lithuania's Rimantas Šadžius – who was the only other candidate in the race to beat Donohoe – announced that he was also withdrawing from the race as he didn't have "sufficient support" from other member states. Cuerpo and Šadžius are both socialists, while Donohoe – a veteran politician who has led the body since 2020 – hails from the same centre-right European People's Party political family as European Commission chief Ursula von der Leyen. In his motivation letter announcing his candidacy last month, Cuerpo suggested that the Eurogroup currently focuses too much on 'discussion' rather than 'delivery'. The statement was widely interpreted as a swipe at Donohoe's practice of seeking consensus among member states before advancing major policy files, such as capital markets integration. Cuerpo has called for Spain and other willing member states to deepen their capital markets, even without the backing of all 20 euro area countries. Donohoe's re-election was widely anticipated by EU diplomats even before Cuerpo's and Šadžius' withdrawal. Many member states are deeply suspicious of the Spaniard's support for controversial proposals, including doubling the EU's regular long-term budget and issuing more common EU debt to finance defence investment. Spanish premier Pedro Sánchez's staunch refusal to boost military expenditure to 5% of annual GDP, as agreed during last month's NATO annual summit, also didn't help Cuerpo's cause, diplomats said. Cuerpo later told reporters that Madrid "will continue to contribute constructively from now on to support the new presidency". Šadžius was not believed to represent a serious rival to Donohoe and had not earned the support of any other country in the single currency area, according to diplomats. Created in 1997, the Eurogroup gained prominence – and even notoriety – during the eurozone crisis in the 2010s, when it took crucial decisions to preserve the integrity of the euro area, including member state bailouts and banking reforms. Donohoe is only the fourth person to lead the Eurogroup since its inception. Luxembourg's Jean-Claude Juncker was chairman from 2005 to 2013, followed by the Netherlands' Jeroen Dijsselbloem until 2018, and Portugal's Mário Centeno until 2020. The group typically meets once a month, usually in Brussels, to coordinate economic policies across the single currency area. Its president is elected for a two-and-a-half year term, which can be renewed indefinitely. Inés Fernández-Pontes contributed reporting. (vib) CORRECTION: Updated to state that Cuerpo is Spain's economy minister. UPDATE: This article has been updated to include further context.
Euronews
06-07-2025
- Business
- Euronews
Ireland, Lithuania and Spain: Who will lead the Eurogroup next?
Ireland, Lithuania and Spain are vying for leadership of the Eurogroup on Monday, which chairs the monthly meetings of the 20 eurozone finance ministers and plays a key role in coordinating and influencing the Council's economic policy decisions. Over the past two decades, the Eurogroup has had only four permanent presidents: Luxembourg's Jean-Claude Juncker (2005–2013), the Netherlands' Jeroen Dijsselbloem (2013–2018), Portugal's Mário Centeno (2018–2020), and Ireland's Paschal Donohoe. Since 2020, the position has been held by Donohoe, a member of the influential European People's Party (EPP). But for his potential third term, the Irishman is being challenged by the socialist finance ministers of Spain and Lithuania, Carlos Cuerpo and Rimantas Šadžius, who are offering an alternative vision for the next two and a half years. The vote on Monday will be held in secret. To win, a candidate must secure at least eleven out of twenty votes. Cuerpo offers a 'renewed' and ambitious agenda The Spanish contender, Carlos Cuerpo, is an economist with a PhD and previous experience at the European Commission and Spain's fiscal watchdog, AIReF. He has served as Spain's finance minister since late 2023, when he succeeded Nadia Calviño, who now leads the Luxembourg-based European Investment Bank. Cuerpo is not the first Spaniard to seek leadership of this informal group. Calviño ran against Donohoe in 2022, and Luis de Guindos—now Vice President of the European Central Bank—also tried to secure the role during his time as economy minister under a Spanish Popular Party government. In his motivation letter to fellow ministers, Cuerpo laid out an 'ambitious' and renewed agenda aimed at strengthening the eurozone's long-term growth, completing the capital markets union, boosting the international role of the euro, and finalizing the banking union. 'The time has come to move from discussion to delivery. The credibility of our collective project depends not on what we say, but on what we achieve—together, and without delay,' Cuerpo wrote. Earlier this month, Spain—along with Germany, France, and Italy—presented a discussion paper arguing that although the Eurogroup has been effective during crises, it has often lacked decisiveness in other areas, particularly in advancing the capital markets union. As a Spanish socialist, the 44-year-old finance minister has also supported issuing new common debt to strengthen Europe's defence capabilities. He has called for doubling the EU's next long-term budget—from 1% of the bloc's GDP—to fund both traditional priorities, such as agriculture and cohesion, and new ones, including security, defence, and the green and digital transitions. Several diplomatic sources suggest the real contest is between Cuerpo and Donohoe. However, Cuerpo's political family is in the minority within the Eurogroup, and his more transformative proposals may face resistance from fiscally conservative countries like Germany and the Netherlands. Paschal Donohoe: 'predictability' in times of crisis Amid soaring trade tensions and a war on the EU's borders, Paschal Donohoe tells his 19 finance peers in a letter seeking their support that the global economy is at 'a pivotal juncture'. Despite all the challenges, the Irishman argues that the Eurogroup remains a source of predictability, stability and transparency. He also praised the achievements of recent years under his leadership, while warning that more work is needed. "The changing external environment gives us the impetus and imperative to progress on long-standing issues and deliver on our shared priorities," he said, promising to remain an honest broker in the group's negotiations. If he is re-elected, he plans to deepen the European capital markets, make progress on the digital euro, promote greater dynamism in integration, and continue to invest in security cooperation. 'An awful lot can happen in a number of weeks in the world that we're in, but I am encouraged by the support I've currently received,' the Irish finance minister told Euronews in a recent interview. Šadžius calls for a less concentrated capital markets union In the race for the presidency of the Eurogroup, Rimantas Šadžius is the wild card. Despite being a highly experienced finance minister from Lithuania, he faces two main disadvantages: he belongs to the socialist political family—meaning he competes for the same pool of votes as Carlos Cuerpo—and he is seeking the backing of smaller countries, a constituency Paschal Donohoe has long cultivated. Šadžius has served as a member of the Luxembourg-based European Court of Auditors, and has played a leading role in Lithuania's accession to the eurozone since 2015. He also chaired ECOFIN during Lithuania's presidency of the Council of the EU in 2013, a period marked by key decisions on the creation of the Banking Union. Diplomatic sources suggest Šadžius could attract support from EU member states closest to Russia's border, but he is not expected to gain enough votes to win the race. In his letter to fellow ministers, the Lithuanian candidate pledges to promote deeper integration of member states into the euro area, avoid overlaps with the European Council's agenda, ensure fiscal sustainability, and accelerate the rollout of the digital euro. Like his rivals, Šadžius commits to completing both the banking union and the capital markets union. However, he stresses the need to address the fact that the latter remains 'heterogeneous and more concentrated in Western and Northern Europe.'
Hindustan Times
01-07-2025
- Business
- Hindustan Times
Spain to shift $1.9 billion in reserve assets to help developing countries
By David Latona Spain to shift $1.9 billion in reserve assets to help developing countries SEVILLE, Spain, - Spain will redirect an additional $1.9 billion in Special Drawing Rights to the International Monetary Fund as part of an effort to support developing countries, Economy Minister Carlos Cuerpo told Reuters on Tuesday. Speaking on the sidelines of a UN conference on development financing in Seville, Cuerpo said Spain has committed to shifting up to 50% of its SDRs, or over 5.5 billion euros , showcasing the country's dedication to contributing to global economic stability and development. SDRs are international reserve assets created by the IMF to supplement member countries' official reserves, providing liquidity to the global economy. They are allocated to member countries in proportion to their IMF quotas and can be exchanged among governments for freely usable currencies in times of need. "Spain will always be part of the solution, for example, with the commitment to rechannel most of our SDRs ... that would benefit developing countries," Cuerpo said. The additional funds will go into the IMF's Poverty Reduction and Growth Trust, which is used to provide concessional loans to poor countries. Spain's move aligns with broader efforts among donors to support countries in need, if with the notable absence of the United States after Washington refused to back the summit's plan of action hammered out over the last year. The pre-summit "outcomes" agreement included tripling multilateral lending capacity, debt relief, a push to boost tax-to-GDP ratios to at least 15%, and shifting the special IMF money to countries that need it most. This article was generated from an automated news agency feed without modifications to text.
Euractiv
30-06-2025
- Business
- Euractiv
Eurozone leadership battle
Eddy Wax Jun 30, 2025 08:30 9 min. read News Based on facts, either observed and verified directly by the reporter, or reported and verified from knowledgeable sources. Welcome to the Capitals, your concise and comprehensive summary of European news from Brussels by Eddy Wax, with Nicoletta Ionta. We welcome feedback and tips here. You can sign up here. In today's edition: Who gets to steer the Eurozone? Orbán attacks Brussels after Budapest Pride. France claims latest Russia sanctions are the toughest yet. Today's edition is powered by The International Fragrance Association Experience Global Fragrance Summit 2025 Singapore – 15-16 October 2025 Discover a world of scent with regulatory and scientific experts at the crossroads of Asia. Find out more here about global fragrance. À la carte Spain and Lithuania's socialist governments want to dislodge Ireland's centre-right Finance Minister Paschal Donohoe from his post as the chair of the Eurogroup at a vote a week today. But Donohoe will be a hard man to beat. Since COVID, the 50-year-old has chaired the monthly meetings of the Eurogroup – an informal gathering of the 20 EU finance ministers whose countries' currency is the euro. Pitching himself as a safe pair of hands, Donohoe is on course to secure at least 11 votes and win a third term, taking him close to surpassing Jean-Claude Juncker's record as the longest-ever head of the Eurogroup. But Donohoe faces two challengers. On Friday, Spain's Economy Minister Carlos Cuerpo threw his hat into the ring, while his Lithuanian counterpart Rimantas Šadžius is also competing, and will launch his bid today. Spain's Cuerpo believes that more EU common borrowing – like the bloc did post-COVID – is a 'no-brainer'. That's a non-starter for more fiscally conservative countries and Cuerpo didn't mention it in the letter he wrote to finance ministers setting out his stall. Cuerpo was a civil servant until he was appointed by Socialist Prime Minister Pedro Sánchez as economy minister in December 2023, taking over from Nadia Calviño when she went to run the European Investment Bank. Framing himself as the change candidate, Cuerpo put in a barbed line in his letter that suggests he thinks Donohoe is leading the Eurogroup – whose main role is economic coordination between countries – as a mere talk shop, writing: 'The time has come to move from discussion to delivery." 'Cuerpo is pro more common borrowing and proposed the [EU common budget] should be funded at 2% of GNI!' one EU diplomat told my colleague Thomas Moller-Nielsen. 'This radical position has not gained support especially with Germany, Netherlands and other frugals." Cuerpo's last-minute bid also comes just after Spain refused to meet NATOs' 5% spending target and at a rocky time for Sánchez's government, raising questions about whether Cuerpo could last the two-and-a-half-year term. According to a second EU diplomat, there's little political appetite in the bloc to reward Sánchez with a win right now. In fact, Cuerpo's bid will probably only underscore how isolated the Socialists are in Europe. Aside from his six EPP colleagues who are backing Donohoe, the Irishman has also secured Finland's support, and several finance ministers who are not themselves from EPP parties are governing in coalition with the centre right. Donohoe is pitching himself as the candidate for stability in turbulent times. The Eurogroup gets a lot less attention these days than it did during the years of the Greek debt crisis. But with Donald Trump's tariff threats coming to a head on 9 July, a sluggish EU economy, wars, and who knows what other surprises around the corner, Donohoe might be a man we come to see a lot more of. EU out in force at Budapest Pride Viktor Orbán is seething after 100,000 people took to the streets of his capital city for an LGBTIQ+ Pride festival Saturday, in defiance of his government's threats and orders to ban it under the guise of child protection. Reuters reported that Orbán said the event was 'repulsive', and accused the EU of directing opposition politicians to organise the event. It was actually organised by the city's green mayor Gergely Karácsony; Ursula von der Leyen had called for authorities to permit it. There is nothing new about Orbán's claim that the EU is undermining his country's sovereignty – but those attack lines may well be set to go into overdrive ahead of the 2026 elections. Polls are putting EPP member Péter Magyar's Tisza party well ahead of Orbán's Fidesz. Lots of EU folks did show up at Pride, including the leaders of the Socialists Iratxe García, the leader of Renew Valérie Hayer, and EU Equality Commissioner Hadja Lahbib. New sanctions against Russia 'The moment has arrived to force Vladimir Putin to cease fire,' declared France's Europe Minister Jean-Noël Barrot in a sit-down interview on French channel LCI over the weekend. He claimed that the EU was preparing the 'heaviest sanctions that we have taken since 2022' in its upcoming package. The tough rhetoric is reminiscent of Emmanuel Macron's proclamation that Russia would face 'massive' sanctions if it didn't agree to an immediate ceasefire. That was back in early May. The sanctions Barrot said are coming in days are the EU's 18th package, and its most ambitious component – further restricting the price of Russian oil – is both less demanding that what Volodymyr Zelenskyy wants and not acceptable to the US. There is so little big stuff left to sanction that the EU is now targeting gas pipelines that are no longer operating. Claiming that these are the toughest since Russia's full-scale invasion is obvious hyperbole. What's more, the difficulties agreeing the new package as a 27-strong bloc persist. EU ambassadors are not going to sign off on the package today, because Hungary and Slovakia are still blocking them. This week Commission technocrats will visit Slovakia to assess the impact of the bloc's plan to phase out Russian energy – a concession Robert Fico squeezed out of the EU at last week's summit, as he maintained his stranglehold on the 18th package. Grims reaper lives on Slovenia's Branko Grims, the rebellious EPP lawmaker who initially put his name to a petition to bring down Ursula von der Leyen's EPP-led Commission withdrew his name under massive internal pressure. But there's no sign the EPP will rein in Grims or other MEPs from Janez Janša's party in Brussels ahead of Slovenia's 2026 election. In fact, they're getting a lot of support from the EPP group ahead of a vote in Strasbourg next month. Grims wrote he removed his name to avoid 'malicious manipulation' and stop anyone linking it to a parallel endeavour from his party colleague Romana Tomc to push through a controversial resolution raking up Slovenia's 20th century history. Critics say the resolution should not be discussed in Brussels and is mere point-scoring for a domestic audience. The Socialist, Renew and Green groups walked out of a vote on the topic in the petitions committee last week, before a right-to-far-right alliance carried it. The full-Parliament vote will be in July. Around the bloc GERMANY| Germany plans to develop a 'cyberdome' in cooperation with Israel to defend the country against drones and cyberattacks. Interior Minister Alexander Dobrindt, who met Israeli PM Benjamin Netanyahu in Israel over the weekend, described it as a 'holistic' system, combining military and civil protection. He also wants to increase cooperation between German intelligence services and the Israeli Mossad and establish a centre for German-Israeli cyber research. FRANCE | The bill on the reform of public broadcasting will be debated today and tomorrow in the National Assembly. Championed by the Minister of Culture, Rachida Dati, it aims to rationalise spending by bringing together France Télévisions, Radio France and the National Audiovisual Institute (INA) within a single holding company named France Médias, under the authority of one sole CEO. The proposal is deemed unacceptable by the trade unions, who argue that it jeopardises both the future of employees and the independence of news reporting. The stations of the Radio France group began an open-ended strike on Thursday, and are now being joined by employees of France's public television channels. The aim of the strike, as stated by the unions in a recent press release, is to 'force the government to back down'. ITALY | The International Criminal Court prosecutor has formally asked judges to declare Italy non-compliant with its obligations under the Rome Statute, following the controversial release in January of a Libyan official accused of crimes against humanity. Read more. PORTUGAL | Hundreds of people took to the streets of downtown Lisbon on Saturday in a demonstration for the right to housing, which mainly attracted young people. Read more. POLAND | Some 40% of Poles say it is possible the recent presidential election may have been rigged, according to a new poll. Read more. CZECHIA | At a closed-door NATO dinner last week, European leaders pressed Donald Trump to get tougher on Russia, but the US president remained hesitant, Czech President Petr Pavel revealed in an interview on Sunday. Read more. Also on Euractiv
