Meeting in an inclusive format, the heads of state or government of the euro area countries exchanged views on the economic situation, which continues to be marked by a vigorous recovery, even if the uncertainties linked to the evolution of the Covid-19 pandemic and the surge in energy prices remain.
ECB President Christine Lagarde informed the EU27 of the Monetary Institute’s decision, taken that afternoon (see EUROPE 12855/8), to stop, at the end of March, the massive ‘PEPP’ of buying back mainly government securities while maintaining a very accommodating monetary policy.
We had “a first exchange” on the European economic governance framework, said French President Emmanuel Macron, whose country will hold the EU Council Presidency in the first half of 2022. A French priority, the reform of European fiscal rules should be on the agenda of the extraordinary European summit on 10 and 11 March, which will focus on a new European growth model and in particular on the issue of investment incentives (see EUROPE 12850/17).
More concrete proposals are expected from the European Commission in the spring.
In the conclusions they adopted, which have not changed since a previous version (see EUROPE 12854/7), the EU27 agreed to maintain budgetary support for the economy in order to deal with uncertainties and renewed their commitment to the completion of the Banking Union.
As such, they are calling on the Eurogroup to finalise a detailed work programme, a goal that its President, Paschal Donohoe, believes is achievable by June 2022 now that a new German government is in place.
See the statement of the Euro Summit: https://bit.ly/3mb5FUY (Original version in French by Mathieu Bion)