Brussels, 10 March 2025
In regular format
Macroeconomic developments in the euro area
The Eurogroup took stock of the macroeconomic developments and prospects in the euro area, based on presentations by the European Commission and the European Central Bank (ECB).
Fiscal policy coordination
Ministers exchanged views on fiscal policy coordination in the euro area, assessing past experiences of formulating and implementing fiscal plans.
Based on an issues note from the Eurogroup Secretariat, they also discussed emerging budgetary challenges and their potential impact on the euro area’s fiscal stance.
“The geopolitical reality has changed, and Europe is now focused on relying more on ourselves and less on others, especially in security and defence. This will impact current and future budgets. Stability and safety in public finances go hand in hand with security, helping reduce future risks.
Paschal Donohoe, President of the Eurogroup
Miscellaneous
Policy priorities of the Austrian government
The new Austrian Minister of Finance, Markus Marterbauer, presented the policy priorities of his government.
In inclusive format
Follow-up from the February G7 meeting of finance ministers and central bank governors
The President of the Eurogroup, Paschal Donohoe, debriefed ministers on the G7 meeting of finance ministers and central bank governors (FMCBG) in Cape Town.
Developments in crypto-asset activities and markets and their implications
Ministers discussed developments in crypto-asset activities and markets and their implications for the euro area and the European economy.
Crypto-asset markets are evolving very fast, both politically and technologically. Policy developments in other jurisdictions can impact Europe. These discussions are tied to our autonomy and currency resilience. The digital euro project is critical to staying ahead of the curve.
Paschal Donohoe, President of the Eurogroup
Preparation of the March Euro Summit
President Donohoe presented the main elements of the letter he will address in his personal capacity to the President of the Euro Summit, António Costa, focusing on the implementation of the Eurogroup statement on the future of the capital markets union since its adoption in March 2024 and the plans for the months ahead.
- Euro Summit
- Statement of the Eurogroup in inclusive format on the future of capital markets union (press release, 11 March 2024)
- Capital markets
Preparatory documents
- Draft agenda, Eurogroup
- Draft agenda, Eurogroup in inclusive format
- Draft annotated agenda, Eurogroup
- Draft annotated agenda, Eurogroup in inclusive format
Press releases
Remarks by Paschal Donohoe following the Eurogroup meeting of 10 March 2025
10 March 2025
Let me walk you through the main points from today’s meeting. Our first item was stocktaking of macroeconomic developments. It’s clear that we are in a very dynamic and uncertain environment. There is obvious uncertainty with regard to tariffs on trade, to the security situation in Europe and the impact of all these developments on growth and investment on growth and investment. It is important to highlight that the euro area economy continues to be remarkably resilient considering all of this. The latest projections show a slightly lower growth profile than was originally expected but some of the latest news will be growth positive.
We then had a discussion on fiscal policy. We acknowledged that the geopolitical reality has changed, and the focus in Europe is now firmly on relying more on ourselves and less on others, especially in the area of security and defence. This will clearly have an impact on our current and future budgets. Some important measures have been announced, and all ministers are working through the implications of these new priorities on budget preparation. We all know that stability and safety in our public finances also goes hand in hand with security and this combination plays a role in reducing the scale of risks that we may face in the future.
Some of us around the table had participated in a G7 meeting that took place in South Africa. So in the Eurogroup today, in inclusive format, we debriefed all ministers on that particular discussion and made the case for the importance of those kinds of exchanges and the need for solidarity and for support in dealing with the challenges that the trading system will face in the time ahead.
We also had a very important discussion on crypto-assets markets. This is an area which is evolving very fast, both politically and technologically, and today was getting a very clear picture of where we stand. We know this is a global market and policy developments in other jurisdictions can have important consequences for us here in Europe. So these discussions are fundamentally linked to our own autonomy and to the resilience of our currency. The digital euro is critical to staying ahead of the curve in this area. A huge amount of technical work has now been done and there is growing appreciation amongst ministers of the importance of this work.
Finally, we had a discussion in advance of the euro area summits. This month marks the one -year anniversary of the Eurogroup statement on the future of the capital markets union. Today we had a quick update on the work that we’re doing to monitor progress at a national level. We got an update from Commissioner Dombrovskis on the work currently taking place in the Commission, that will shortly be concluding. I also presented to the Eurogroup a quick summary of the points that I plan to make in the Euro Summit and that I will be further communicating in my usual letter to President Costa. As is regular with new governments, we had a presentation of the policy priorities of the new government of Austria.
Source – Eurogroup: Visit the meeting page
Remarks by EU Commissioner Dombrovskis at the Eurogroup press conference
Brussels, 10 March 2025
Thank you. Good evening, everyone.
We started today with an exchange on the economic outlook.
Since our last meeting, the international context has become even more challenging, as we are witnessing dramatic shifts in the geopolitical landscape.
Russia’s brutal full-scale invasion of Ukraine continues to cause uncertainty and pose a serious challenge to the economy and to Europe’s security.
On top of this, it now appears as though we can no longer rely on long-standing strategic partners, including for our security.
This high uncertainty is already having a significant drag on economic activity, in particular investment.
In spite of this challenging context, recent data releases confirm that the EU economy is showing considerable resilience, with economic sentiment improving and the labour market holding up well.
In a context of elevated geopolitical risks, quick and unified policy action is key.
We need to take more responsibility for our security and defence, while improving our competitiveness and economic fundamentals.
Our security and our prosperity are interdependent. And, in fact, the two objectives are mutually reenforcing.
The proposed ReArm Europe Plan has the potential to mobilise €800 billion, providing a significant fiscal impulse that may have a positive impact on the growth and jobs outlook.
Our collective policies will have a crucial impact on the EU’s growth path and resilience in the years ahead.
Fiscal policy, which was the second item on today’s agenda, continues to be an important lever.
Today, I provided ministers with an updated state-of-play on the implementation of the new economic governance framework.
Overall, we are making good progress.
We have now endorsed 22 medium-term fiscal-structural plans of Member States.
Since our last meeting, Bulgaria has submitted their plan.
The Commission will present its assessment in due course.
We expect the remaining four plans – Belgium, Austria, Lithuania and Germany – to be submitted in the coming weeks and months.
As just discussed, the geopolitical landscape has evolved very significantly in recent weeks, requiring a fast and sharp increase in defence spending in Europe.
That is why the Commission is proposing the activation of the National Escape Clause.
The fiscal leeway will be conditioned and controlled so that it does not endanger fiscal sustainability over the medium term.
In fact, we will ensure that the fiscal framework continues to operate in a predictable and transparent manner.
Member States will be able to implement their just-adopted medium-term plans as foreseen.
But, at the same time, the flexibility will provide significant leeway for additional defence expenditure.
We will discuss this issue over the ECOFIN dinner this evening and also in the ECOFIN Council tomorrow.
The Commission will formalise its proposals shortly.
At the same time, we must still maintain focus on the implementation of the fiscal, reform and investment measures contained in Member States’ plans.
I also provided the meeting with a debrief from last month’s G7 meeting of Finance Ministers and Central Bank Governors.
At this challenging time, the EU remains committed to the rules-based international order and engaging with its international partners through multilateral fora, including the G20 and G7.
We discussed the provision of financial assistance to help Ukraine continue its war of survival in the face of Russian aggression.
Since the beginning of Russia’s full-scale Russian invasion, the EU has provided €135 billion in assistance to Ukraine, covering financial, military, and humanitarian assistance.
This figure includes €73.3 billion in the form of grants.
The EU has also provided approximately €41.3 billion in loans through its Macro-Financial Assistance and Ukraine Facility instruments.
However, these loans are offered on exceptionally concessional terms, with maturities of up to 45 years, extended grace periods of 10 years, and almost no interest payments.
This makes, very clearly, the EU the largest donor to Ukraine when compared with any other international partners.
On trade, I made clear that growing trade tensions will have a profoundly negative impact on the global economy.
I expressed our regret over the announcements of the United States of potential tariffs on the EU.
The EU is ready to react in a firm and proportionate manner, if necessary.
We also discussed the preparations of the March Euro Area Summit where the focus will be on deepening and developing our capital markets.
As you can see from the Competitiveness Compass, access to finance is key to Europe’s competitiveness agenda.
The EU needs to speed up its progress towards deep EU capital markets development, and the renewed political impetus should give us the strength to advance decisively.
The Commission will come forward with its Communication on Savings and Investment Union next week, and we hope it will be welcomed with a strong political will and commitment also in the Council.
Thank you.
Source – EU Commission