The economic situation that arises after the Russian invasion of Ukraine and key macroeconomic developments affecting fiscal planning for 2023 are the main topic of discussion. Eurogroup which starts today at 4 pm (Greek time) in Brussels.
Eurozone finance ministers will look at the macroeconomic situation characterized by a steady rise in inflation due to rising energy prices and high levels of uncertainty caused by the Russian invasion of Ukraine.
According to a European official, the risk of “stagflation” does not exist, mainly because the European economy continues to grow, albeit at a slower pace.
At the same time, it is important for finance ministers to adjust and plan fiscal policy for 2023, especially in the wake of geopolitical developments and the impact of sanctions against Russia on the European economy, in order to ensure economic recovery in the eurozone.
It is also recalled that the European Commission does not rule out the possibility of postponing the deactivation of the general escape clause of the Stability and Growth Pact until 2023, pending its proposals, possibly in May.
And Greece on the table
The Eurogroup will also consider its 13th enhanced monitoring report Of Greece.
According to a European official, the report notes progress in implementing reforms, in particular in the areas of public administration, the administrative reorganization of the Single Pension Fund, the licensing of investments in the agreed areas, and progress in the field of digitization.
The same official noted that by the end of June it should be determined what kind of supervision will exist for Greece, after four years of close fiscal monitoring.
Another issue that will concern the finance ministers is the process that will lead to his appointment successor to Klaus Reglingas head of the European Stability Mechanism (ESM).
Klaus Regling’s second term ends in October and the succession process will begin in May.
The Eurogroup will then meet in its comprehensive format (27 EU finance ministers) to complete the banking union, which is a priority for Eurogroup President Pascal Donahue. Some of the outstanding issues are the introduction of a European Deposit Guarantee and tackling banks’ exposure to government risk
The issue of banking union will also be discussed by European leaders at the European Council on 24 and 25 March.
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