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The Eurogroup discussed macro-economic developments, including inflation, and policy prospects in the euro area. Ministers took stock of and exchanged views on energy prices and inflation developments within the euro area ahead of the Commission’s autumn forecast.
As activity picks up and recovery takes hold across advanced economies, the bottlenecks we are experiencing in some sectors of our economies are contributing to a spike in inflation. While the increase in prices is largely due to temporary factors, they are a bit more persistent than anticipated but they are expected to fade away over 2022.
Paschal Donohoe, President of the Eurogroup
Highlights from the Eurogroup meeting of 8 November 2021 held in Brussels
Digital euro
The Eurogroup discussed policy objectives and the uses of the digital euro in the context of the fast pace of digitalisation in the global economy, and its impact on the euro area and the common currency, and took stock of related initiatives and developments at international level.
As consumers and firms turn increasingly to electronic payments, we want to ensure that our citizens and all actors in our economy continue to have access to public money in a range of scenarios. For instance, a digital euro could offer a European solution in a context of increased demand for alternative means of payments.
Paschal Donohoe, President of the Eurogroup
The president of the Eurogroup briefed ministers on the international meetings he attended in October (G7 and World Bank and IMF annual meetings).
Inclusive format
Economic governance review
The Commission presented the relaunched economic governance review, with a focus on the euro area dimension. Ministers discussed the process through which Eurogroup (and Eurogroup in the inclusive format for relevant items) meetings will consider the governance review, and held an initial discussion on how the Eurogroup could address challenges to the coordination of fiscal and economic policies within the euro area and to the functioning of EMU in a post-COVID economic environment.
We all agreed on the importance of an effective economic governance framework and of the need for discussion on overarching issues, including national ownership, simplification and enforcement. Overall, our efforts will be about how we can strike a balance between fostering growth-friendly investments and ensuring fiscal sustainability
Paschal Donohoe, President of the Eurogroup
The Eurogroup was briefed by the institutions on the main results of the bi-annual monitoring report on risk reduction indicators. Ministers also took stock of the preparations for the introduction of the common backstop to the Single Resolution Fund, as agreed in November 2020.
The technical work to introduce the common backstop to the Single Resolution Fund has been completed. As soon as all member states have finalised the ratification of the ESM Treaty and the Amending Agreement to the Inter-governmental agreement, we will take the final procedural step to put the backstop in place at the beginning of 2022.
Paschal Donohoe, President of the Eurogroup
As consumers and firms turn increasingly to electronic payments, we want to ensure that our citizens and all actors in our economy continue to have access to public money in a range of scenarios. For instance, a digital euro could offer a European solution in a context of increased demand for alternative means of payments.
