Brussels, 16 January 2024
Thank you, minister – good morning, everyone.
I think it’s the first time in more than nine years that I am able to say ‘good morning’ at a press conference after Ecofin. So I think we can take it as a sign of the efficiency of the Belgian Presidency and the speed at which it intends to move forward.
We have just concluded the first ECOFIN under the Belgian EU Presidency.
Vincent, I wish you and your team every success in steering through many important files in the coming six months.
Your Presidency comes at a particularly important moment when the EU faces several formidable challenges.
Russia’s protracted war against Ukraine continues to affect economic developments, both in Europe and globally.
The conflict in the Middle East is affecting shipping routes in the region.
On Ukraine: we need to continue to support Ukraine with everything necessary to win the war.
In this context, there are several work areas that demand our urgent attention.
One is to agree on the revised multiannual financial framework. This includes the Ukraine Facility, so that the EU can provide stable and predictable funding to Ukraine for the years ahead.
We welcome the Presidency’s focus on the EU’s long-term financial support for Ukraine and its reconstruction.
Last week’s agreement to give a partial mandate for the Ukraine Facility will speed up technical negotiations between EU institutions ahead of the leaders’ summit on February 1.
Availability of funding, also from international partners, has a direct impact on Ukraine’s ability to keep fighting against the Russian aggressor. This is a make-or-break situation.
Ukraine needs this funding urgently, and the EU must live up to its commitments. So we really have no time to lose in getting the Ukraine Facility approved.
Turning to the EU economy: for four quarters in a row, growth has been weak. Even though euro area inflation rose slightly in December, up to 2.9% from 2.4% in November, wider inflationary pressures should continue to ease as the year progresses.
Oil and gas prices are also moving lower.
Overall, we expect the EU’s economic activity to pick up gradually as consumption recovers on the back of easing inflation and robust EU labour markets.
Labour markets remain strong and tight, with unemployment falling again in November, to 5.9%.
We will update our forecast on February 15.
The economic outlook is still subject to many downside risks.
This makes it all the more important for Member States to maintain the implementation of Recovery and Resilience Plans, putting the relevant reforms and investments into effect – quickly and in full.
This is crucial for our resilience and competitiveness.
It will help to make sure that the EU’s business environment remains attractive – with skilled workers, a stable regulatory environment and fewer administrative burdens for companies.
Following the recent Council agreement on reforming the EU’s fiscal rules, we look forward to agreement in the European Parliament and the upcoming trilogues.
Vincent, we rely on your leadership to conclude this work quickly to give us clarity and predictability on the fiscal rules for the years ahead.
On the wider financial system, we look forward to working closely with the Presidency to advance work on the Capital Markets Union and Banking Union.
We would also like to see the finalisation of the anti-money laundering package, and progress on simplifying reporting requirements as part of the 25% reduction target to boost the EU’s long-term competitiveness.
Lastly, we welcome the Presidency’s focus on taxation, in particular on implementing the two pillars of the OECD tax deal.
You can rely on the Commission’s full support on all this Presidency work, and we have a busy six months ahead. Thank you.