Brussels, 14 July 2023
Euro area fiscal stance
The Eurogroup discussed the economic and budgetary situation in the euro area and the fiscal policy guidance for 2024, following up on its March fiscal guidance.
We agreed on the necessary euro area fiscal stance for 2024. It is to pursue a determined, gradual and realistic fiscal consolidation that includes reforms, but also looks to increase investment through private and public sources, as well as through EU support and instruments.
Paschal Donohoe, President of the Eurogroup
The chair of the European Fiscal Board (EFB), Niels Thygesen, presented the board’s recent report on the euro area fiscal stance. The Commission also presented its analysis.
The Eurogroup adopted a statement on the fiscal stance for the euro area for 2024, with a view to the preparation of next year’s national budgets.
- Eurogroup statement on the fiscal stance for the euro area for 2024
- Eurogroup statement on the fiscal guidance for 2024 (13 March 2023)
- The implications of higher euro area inflation for public finances (technical note for the Eurogroup)
- Assessment of the fiscal stance appropriate for the euro area in 2024 (European Fiscal Board)
- The 2023 stability and convergence programmes – an overview, with an assessment of the euro area fiscal stance (European Commission)
International role of the euro
Ministers exchanged views on the international role of the euro, based on the annual review published by the European Central Bank (ECB). The Commission also presented its views and analysis.
- International role of the euro (background information)
- The international role of the euro (European Central Bank review, June 2023)
Future of European capital and financial markets
Ministers discussed the future of European capital and financial markets, following on from the Eurogroup meeting of 15 June, where the International Monetary Fund (IMF), the ECB and the Commission presented their views on the current state of play.
Nearly all ministers came in to contribute on this topic. They updated us on their work at home and the ideas they think are worth pursuing to deepen our capital markets. This is the second part of a stocktake that we have undertaken regarding the nature of the EU markets at the moment. After the summer break, we’ll hear from those who depend on capital markets to fund jobs and growth in Europe. And we’ll use this to inform our work on recommendations that we will make in the first half of next year.
Paschal Donohoe, President of the Eurogroup
Ministers responded to that input, and shared their positive domestic experiences in developing financial and capital markets, the policy drivers, and the challenges encountered.
Digital euro
Ministers continued their discussions on the digital euro, further to the single currency legislative package published by the European Commission on 28 June.
A digital euro is all about the natural evolution of our common currency. It’s not about ending cash in any way. It’s about offering a digital version of cash in a world that is increasingly digital. There’s obviously a long way to go before we see the digital euro in our virtual wallets. But today was an important moment of political discussion, in a democratic way, regarding how our currency could develop.
Paschal Donohoe, President of the Eurogroup
The Commission proposals will be subject to thorough political discussions in the European Parliament and the Council.
- Towards a digital euro (background information)
- Single currency package (European Commission press release, 28 June 2023)
Source – EU Council