Eurogroup, 13 March 2023

Main results

Macroeconomic and fiscal developments in the euro area

The Eurogroup took stock of macroeconomic and fiscal developments in the euro area and exchanged views on the fiscal policy guidance for 2023 and 2024. On 8 March, the Commission adopted a communication providing member states with guidance on the conduct and coordination of fiscal policy in 2024.

The Eurogroup adopted a statement on fiscal policy guidance.

We agreed that fiscal policies should aim to ensure debt sustainability in the medium term while raising growth potential in a sustainable manner. We did recognise the need to address the green and digital transitions, but sent out important signals regarding the design of budgetary measures and the need to avoid permanent deficit increasing measures as an important element in preparation for budgets for next year.

Paschal Donohoe, President of the Eurogroup

• Eurogroup statement on the fiscal guidance for 2024
• Communication from the Commission of 8 March 2023
• Economic governance framework (background information)

Preparation of international meetings

Ministers discussed key issues for global economic policy coordination, in preparation for the upcoming spring meetings of the World Bank Group and the International Monetary Fund. This included the standard stocktaking of exchange rate developments over past months.

In addition, the Commission briefed the Eurogroup on the February G7 meeting of finance ministers and central bank governors.

• World Bank
• International Monetary Fund

Inflation developments in the euro area

The Eurogroup exchanged views on inflation developments, including drivers of inflation in the euro area and the situation in individual member states. The discussion built on a note from the Commission services, a secretariat issues note and the views of the European Central Bank.

This topic is never absent from our policy discussions, and today was an opportunity to take a deeper dive into the inflation figures, to look at the Commission's analysis, to take stock of a range of price pressures that are lingering even after energy prices have come down from their peak levels; and it also provided a further political opportunity for ministers to share their experiences in dealing with this great challenge and also to further develop best practice. Paschal Donohoe, President of the Eurogroup

• Technical note on inflation in the euro area and the EU

Economic governance review

The Eurogroup returned to the euro area-related aspects of the economic governance review (EGR), and it endorsed the euro area-related parts of the draft Council conclusions on the EGR.

• Economic governance framework (background information)

Digital euro

Building on the statement agreed by the Eurogroup on 16 January, ministers exchanged views on the strategic policy objectives of a digital euro based on a secretariat issues note.

After many months of assessing the potential design of a digital euro ministers wanted to reflect on the bigger picture again ahead of a legislative proposal from the Commission and the ECB decision on whether to move to the next phase. We noted the reasons why the digital euro is a high priority for our monetary union. These issues involve matters such as consumer preferences, providing a public good in the form of pan-European payment solutions and how we can preserve and deepen European monetary and economic autonomy. We also confirmed that we will continue our work to provide a solid democratic and political basis for that project, and we touched upon some of the implications of granting legal tender status to the digital euro. Paschal Donohoe, President of the Eurogroup

• Issues note on digital euro
• Eurogroup statement on the digital euro project (press release, 16 January 2023)
• Digital finance (background information)