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Video conference of the Eurogroup, 18 January 2021
Main results
Regular format
Thematic discussion: Imbalances in the euro area in the wake of the COVID-19 crisis
The Eurogroup held a thematic discussion on macroeconomic imbalances in the eurozone on the basis of a technical note prepared by the European Commission.
Ministers discussed to which extent the COVID-19 crisis has exacerbated existing macroeconomic imbalances at euro area level and the policy strategies needed to respond.
The Commission presented an analysis showing how the COVID-19 crisis runs the risk of aggravating the pre-existing macroeconomic imbalances in the euro area. But, of course, while we acknowledged that risk, we also acknowledged in recent weeks that there have been very positive developments. (...) We are still very much aware within Eurogroup of the need to maintain support to homes, to workers and to businesses as they face the economic consequences of prolonged health restrictions. Our discussion today reconfirmed the very strong consensus on the need to maintain a supportive budgetary stance.
Paschal Donohoe, President of the Eurogroup
Recovery and Resilience Plans
Ministers exchanged views on the preparation of the national Recovery and Resilience Plans in line with the priorities agreed in the euro area recommendation (EAR).
Putting together these kinds of plans is an unprecedented exercise, and the dialogue within the Eurogroup is really valuable in that respect, so that ministers can share their experience and learn from one another. We will continue to foster consistency and coherence between national policies, the use of the recovery facility and euro area priorities.
Paschal Donohoe, President of the Eurogroup
Relations with the US in the monetary and financial area
The Eurogroup exchanged views on the global monetary and financial system, in particular on prospects for transatlantic cooperation. Lawrence H. Summers, Harvard professor and former US Secretary of the Treasury, was invited to share his insights and experience with the Eurogroup.
We were delighted to have Professor Summers, who shared this insight with us based on his decades of top-level economic policymaking and crisis management experience. This crisis has reminded us that both problems and solutions transcend national and narrow boundaries. But today I sensed a shared optimism within the Eurogroup that we will see new dynamics in our engagement with our most important partners.
Paschal Donohoe, President of the Eurogroup
The Commission presented an analysis showing how the COVID-19 crisis runs the risk of aggravating the pre-existing macroeconomic imbalances in the euro area. But, of course, while we acknowledged that risk, we also acknowledged in recent weeks that there have been very positive developments. (...) We are still very much aware within Eurogroup of the need to maintain support to homes, to workers and to businesses as they face the economic consequences of prolonged health restrictions. Our discussion today reconfirmed the very strong consensus on the need to maintain a supportive budgetary stance.
