Thank you. Good evening, everyone.
The Eurogroup had a very useful discussion on economic policy priorities for the euro area, which showed a high degree of convergence, and alignment with the agenda of the new commission.
While we have successfully navigated a period of significant challenges in recent years, demonstrating a remarkable degree of economic resilience, the euro area continues to be confronted with significant structural challenges.
Productivity growth has been slow for too long in the euro area, and euro as a whole, threatening our competitiveness and hinders our ability to invest in the future.
Debt levels remain high and, looking further ahead, public spending faces growing pressures from defence spending to an ageing population.
We face these challenges in a context of heightened global tensions as Russia’s war of aggression against Ukraine continues and the high degree of uncertainty surrounding the policy priorities of the new US administration.
To tackle these challenges, with ministers we agreed today on the need for urgent and coordinated policy action to improve competitiveness, productivity and innovation across the euro area. We need to move from words to action. We must act towards:
improving access to funding for businesses; promoting innovation; improving the business environment by reducing administrative burdens and regulatory complexity; removing obstacles to investment and supporting public and private investment in common priorities, such as the green and digital transformations and defence.
We also need to strengthen economic resilience and uphold prudent fiscal policies as a key to achieving macro-financial stability.
There was also broad consensus on the need to deepen the Banking Union and the CMU.
The Eurogroup can play an important role in driving the delivery of these priorities and, in doing so, securing our long-term prosperity.
Today’s meeting also heard from representatives of the European Central Bank (ECB) and the Bank for International Settlements who provided updates on their exploratory work on new technologies for wholesale settlement of transactions.
From the commission side we are supportive of exploring how to modernise our wholesale payment systems to cater for the needs of the market while keeping in mind the need to maintain financial stability and safe, efficient payment systems, as well as our common goal of creating a Savings and Investment Union.
The Eurogroup will return to these discussions in the future.
As regards the digital euro, we need to make fast progress with the legislative proposals.
Europe needs to be at the forefront of embracing the digital age and making the most of all the opportunities that it offers.
Our monetary system, with its common currency at its heart, must also adapt to a digitalised future.
Despite steady progress, further efforts are needed to reach a compromise.
We are fully committed to supporting the Polish Presidency to reach this common approach in the Council this year.
Work on the digital euro also continues in the European Parliament.
The Commission is committed to providing all the technical support needed to facilitate swift progress.
Finally, the new French and Lithuanian ministers presented today’s meeting with the policy priorities of their respective governments.
The Commission looks forward to closely engaging with the Lithuanian authorities on the preparation of their medium-term fiscal-structural plan.
As regards France we welcomed the commitment of the French minister to reduce the French general government deficit and to eventually put public debt on a sustainable downward trend.
It is good news that the adjusted fiscal trajectory presented by the French authorities last week preserves the same ambitious level of overall fiscal effort over the adjustment period.
We also welcome the continued commitment of France to the reforms and investments underpinning the extension of its adjustment period.
Thank you.
For more information, please contact:
Balazs Ujvari, Spokesperson, EUROPEAN COMMISSION
Francisca Marçal Santos, Press Officer, EUROPEAN COMMISSION
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