Video conference of the Eurogroup, 16 December 2020

Main results

Macroeconomic situation

The Eurogroup exchanged views on the economic situation in the euro area.

We assessed where we stand now on the basis of the European Central Bank's latest projections. The second wave (of COVID-19) is having a significant impact on the European economy now as we approach the end of 2020, but we do not expect the change to be comparable to disruption that we experienced during the first wave. Also, our prospects are becoming clearer thanks to developments on the vaccine front.

Paschal Donohoe, President of the Eurogroup

Draft budgetary plans and euro area budgetary situation and prospects

The Eurogroup discussed the overall budgetary situation and prospects in the euro area, and reviewed the economic and fiscal situation of the euro area member states.

This year, the focus is resolutely on coordinating our policies to shield citizens from as much economic harm as we can. We issued a statement today recommitting our group to timely, to temporary and to targeted policy measures. We again reconfirmed that the euro area will run a supportive budgetary policy throughout 2021 to see and to support our citizens through this very difficult period. Paschal Donohoe, President of the Eurogroup

The discussion was based on the Commission opinions on the draft budgetary plans (DBPs) of the 19 euro area member states as well as on the Commission communication on its overall assessment of the DBPs, published on 18 November 2020.

The outcome of this discussion is reflected in a Eurogroup statement.

• Eurogroup statement on the draft budgetary plans for 2021
• Draft budgetary plans 2021 (European Commission)

Euro area surveillance: 2021 euro area recommendation

The Eurogroup discussed the draft 2021 recommendation addressed to the euro area in the context of the European Semester and agreed on the policy priorities for 2021.

There is a huge amount ahead of us in 2020. But with this plan and with the common purpose of the Eurogroup, I believe we can look forward to 2021 with a greater sense of confidence that we can overcome the challenges that we have faced in 2020. Paschal Donohoe, President of the Eurogroup

The recommendation will be approved by the Economic and Financial Affairs Council in 2021 and, following its endorsement by the European Council, formally adopted by the Council.

• European Semester Autumn Package (European Commission)