Rising energy prices and inflation, economic governance, the banking union and the digital euro are high on the agenda of the Eurogroup meeting today at 4pm in Brussels.
Eurozone finance ministers will once again look at rising energy prices and the current rise in inflation (4.1% in October in the eurozone), as well as the impact on the economic recovery. They will also take stock of the macroeconomic situation in the eurozone, with growth remaining strong, albeit at a slower pace than in the period after the last lockdown, according to an EU official.
The finance ministers will also hold a first general discussion on the review of the eurozone’s economic governance, based on the public consultation launched by the Commission in late October. According to a European official, the Eurogroup will discuss the issue regularly, until the summer when the Commission is expected to present its proposals.
The Eurogroup discussions will aim to give the Commission a “good idea” of the “level of ambition of the states” in terms of reforms, while the Ecofin Council will take the lead in the event of a legislative proposal. Some countries want to continue flexibility in fiscal rules, while others believe they have shown flexibility during the pandemic. However, according to the European official, no one supports the “blind” implementation of the debt reduction limits set by the Stability and Growth Pact, as the public debt in the eurozone has increased enough to deal with the state of emergency.
With regard to the banking union, the European Central Bank and the Single Resolution Council (SRB), which is responsible for the resolution of major troubled euro area banks, will present to the Finance Ministers their report on the reduction of financial risk. sector. This analysis is positive, as it shows an overall reduction in risk, according to a European official.
Finally, Ministers will discuss the policy objectives and uses of the digital euro in the context of the rapid pace of digitization in the global economy, including the impact of the digital euro on the euro area and the single currency. Ministers will also take stock of relevant initiatives and developments at international level.
Source: AMPE
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Source From: Capital
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