The fiscal orientation of the eurozone for 2024 is the central topic of discussion Eurogroup which is meeting today in Brussels.

As the Eurozone Finance Commissioner stated, Paolo Gentiloni, the main point is that after three years of expansionary fiscal policy, the Commission is proposing (as it has already done since May) a more restrictive fiscal stance that it will be based first of all on the phasing out of energy price support measures – something which the Commission strongly recommends that all Member States gradually implement.

“The goal is very clear. We need to work hand in hand with monetary policy to bring inflation down,” P. Gentiloni stressed, noting that inflation is falling but core inflation is persistent.

At the same time, as P. Gentiloni said, the Commission recommends to preserve the fiscal space for investments, especially for critical investments in common strategic areas, such as the green and digital transition. He added, finally, that finding the right “balance” would require an agreement as soon as possible on the fiscal rules – an agreement which could be reached by the end of the year.

The Eurogroup is expected to issue a statement today on the fiscal stance of the Eurozone in 2024.

Today’s Eurogroup will also discuss the future of European capital and financial markets and the digital euro.