Eurogroup President Donohoe’s report to the President of the Euro Summit of 24 March 2023

The President of the Eurogroup, Paschal Donohoe, has sent a letter to the President of the Euro Summit, Charles Michel, to report on the work of the Eurogroup. The letter will inform the discussion that Leaders will hold at the Euro Summit on 24 March 2023.

The report takes stock of the economic situation, fiscal policy and coordination in light of the Russian aggression against Ukraine, the related increase in energy prices and inflation as well as the recent financial market turbulence. It highlights the resilience and the strong economic foundations of the euro area, while acknowledging the challenges ahead.

The euro area has demonstrated strong resilience in a very challenging period. But this is no time for complacency. We need to continue our ongoing work on strengthening the economic and monetary union, delivering on our commitments to complete the Banking Union and further developing the Capital Markets Union. A strong euro area economy is an anchor for stability and security on our continent.

Paschal Donohoe, President of the Eurogroup

At its March meeting, the Eurogroup adopted a statement on the orientations for fiscal policy for 2023-2024, stressing the need for prudent budgetary policies which aim at ensuring medium-term debt sustainability while driving growth and addressing the green and digital transitions. The statement also emphasises that broad-based fiscal stimulus to aggregate demand is not warranted in the current economic context. Given continuing uncertainty, remaining vigilant in protecting the most vulnerable remains a priority.

The report also takes stock of the discussions within the Eurogroup on the digital euro project on which a statement was agreed in January. There is broad agreement on the potential vital role of a digital euro for ensuring access to public money in an increasingly digitalised global economy.