Eurogroup President Paschal Donohoe’s report to the Euro Summit President ahead of the Euro Summit meeting of 22 March 2024

The President of the Eurogroup, Paschal Donohoe, has sent a letter to the President of the Euro Summit, Charles Michel, to report on the recent work of the Eurogroup. The letter will inform the discussion that Leaders will hold at the Euro Summit on 22 March 2024.

The report highlights the agreement reached by all EU finance ministers within the Eurogroup in inclusive format on the future of the Capital Markets Union (CMU), in response to the call by the Euro Summit of March 2023 to step up efforts in taking forward the CMU. The Eurogroup statement includes a comprehensive set of actions and measures, which constitute a solid foundation for advancing the CMU agenda during the next institutional cycle.

Creating a well-functioning and effective single market for capital through advancing the CMU is a necessity for Europe. The CMU is one of the key components of our renewed focus on euro area competitiveness, which is imperative to respond to the profound shifts occurring in the global economic landscape. The Eurogroup in inclusive format will remain seized of this initiative and its follow-up.

The report highlights the close coordination of fiscal policies among euro area members in the context of the agreement on the new EU fiscal framework. Fiscal policy remains on a stable course during the transition to the new framework. To facilitate the transition, the Eurogroup has agreed broad fiscal policy orientations for 2025 of an overall slightly contractionary budgetary stance at the euro area level.

The report also takes stock of reviewing the progress in convergence and efforts made by Bulgaria on the path towards adopting the euro.