Meeting in inclusive format, euro area leaders advocated pursuing coordinated and agile economic policies to cope with the economic uncertainty marked by inflationary shock and tighter financing conditions.
In the conclusions they adopted on Friday, 24 June, the EU27 note that—despite these circumstances, which are exacerbated by the Russian invasion of Ukraine—their economies remain “fundamentally strong due to [their] sizeable policy actions at the EU, euro area and national levels”, such as the NextGenerationEU recovery plan. They promise that the European response to an uncertain macroeconomic situation will remain “coordinated, determined and agile”.
“Today, the euro is in a robust situation compared to what occurred during previous crises and has the necessary mechanisms and institutions to avoid the risk of market fragmentation”, affirmed Portuguese Prime Minister António Costa.
President of the Eurogroup Paschal Donohoe reiterated that the Eurogroup would set budgetary policies on Monday, 11 July, with a view to preparing the draft budgets for 2023—the year in which the pact’s general escape clause will continue to be activated.
The EU27 support the Eurogroup’s decision to take steps towards deepening the banking union, starting with legislative initiatives that aim to strengthen the crisis management framework (see EUROPE 12974/10). The European Commission is thus invited to present legislative proposals designed to complete this framework between now and the end of the EU legislative term.
European leaders also congratulated Croatia, which will become the 20th country in the euro area next January.
See the Euro Summit statement: https://aeur.eu/f/2bo (Original version in French by Mathieu Bion with Lionel Changeur)