While the Eurogroup discussed the two major issues on the agenda at their meeting held yesterday, the Eurozone finance ministers refrained from taking any action on either the strength of the euro or the Cyprus bailout.

The debate on the single currency continued and was finally left for the G20 to deal with, while finance ministers indicated they were waiting on a Troika (representatives from the European Commission, the International Monetary Fund and the European Central Bank) report to move forward on financial assistance for Cyprus.

In a press conference after the meeting, Eurogroup chair Jeroen Dijsselbloem explained that while officials discussed the current currency exchange, "the main conclusion was that it should be discussed in the G20 this weekend."

Finance ministers discussed the recent strengthening of the euro and its effect on the Eurozone economy, but in general insisted on allowing market forces to determine exchange rates. Luxembourg Finance Minister Luc Frieden pointed out that just a year ago, "everyone was asking, at least people in Brussels, if the euro was going to survive. I note that today certain people find the euro too strong."

With regard to Cyprus, officials opted to hold off, as previously agreed, until after the elections in March.

"We agreed that an independent assessment conducted by a private sector firm is required and we requested the Troika and Cyprus to agree on the terms of reference for such an assessment within a week," Dijsselbloem explained. The Cypriot representative said, "I believe with the Eurogroup we will be able to find a solution and a program by the end of March."

On Tuesday, the rest of European Union (EU) finance ministers will be joining their Eurozone counterparts in the meeting of the so-called Ecofin beginning at 09:30 London time.

Little progress is expected to be made as officials review economic governance legislation, revision of bank capital requirements or the single bank supervisory mechanism. According to the meeting agenda, they will also be working on the terms of reference for the G20 meeting in Moscow on Friday and Saturday.

JM

Related share prices