Eurozone finance ministers agreed on Monday that the jump in consumer prices during this period will subside in 2022, while the high debt created by the pandemic crisis should be reduced, but in a way that will not affect the economic recovery, transmits Reuters.
Annual inflation climbed to 4.1% last month from 3.4% in September, with eurozone MINDs worried that a strong rise in prices could fuel large wage increases, creating an inflationary spiral.
“Although the price increases are mainly due to temporary factors, the increase is more persistent than expected due to the strength of the recovery,” said Eurogroup President and Irish Finance Minister Pascal Donahue at the regular press conference after the meeting. .
“We are still waiting for this to change and decrease [ο πληθωρισμός] in 2022 and 2023 “, he added.
The same view was expressed by the President of the European Central Bank, Christine Lagarde, reiterating that inflation is temporary, in a post on Twitter.
“At today’s Eurogroup meeting, we discussed the positive economic outlook in the Eurozone, with monetary and fiscal policies supporting the strong recovery,” the central bank chairman said in a Twitter post. “It is temporary. We also exchanged views on the goals of the digital euro.”
At today’s Eurogroup meeting we discussed the positive economic outlook in the euro area, with monetary and fiscal policies supporting a strong recovery. We are confident that the current higher inflation is transitory. We also exchanged views on the goals of a digital euro. pic.twitter.com/iK8ge1ctPr
– Christine Lagarde (@Lagarde) November 8, 2021
Finance ministers have also begun discussions on planned reforms to EU fiscal regulations. – which oblige governments to keep the deficit below 3% of GDP and the debt below 60% – in order to adapt to the economic reality of the coronavirus pandemic.
“I have not heard … any proposals that focus on changing the situation,” said European Finance Commissioner Paolo Gentiloni. “There is an understanding that we have a high level of debt and we need to find ways to reduce it, albeit at the cost of service. [στο χρέος] is smaller than it was 20 years ago … however [η μείωση του χρέους] It should be done in a development-friendly way, which is not easy. “We have not reached an agreement on how to do it, but there is a recognition that this is a problem that we have to deal with,” he said.
“There are different ideas on the table,” Gentiloni said. “Today was a good start, but we have to work hard to reach an agreement on the proposal that will be presented to the table in the first quarter of 2022,” he added.
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Source From: Capital
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