In Luxembourg on Thursday, 11 April, euro-area countries’ finance ministers will review the digital euro project and take stock of the macroeconomic situation within the currency area.
Meeting in extended format, the Eurogroup will examine what progress has been made on the digital euro project within the broader context of the development of central bank digital currencies—an issue which, as stakeholders recognise, takes on very political aspects.
The ECB will provide an overview of the second phase of preparation for the digital euro project, launched in November 2023 by the Governing Council (see EUROPE 13274/29). [The bank] launched five calls for tenders related to the digital euro project in order to establish framework agreements with potential suppliers of certain digital euro components and related services (see EUROPE 13320/16). In addition, the monetary institute is making progress on creating the rulebook for the digital euro project (see EUROPE 13379/25) and has proceeded to establish a temporary unit dedicated to the project (see EUROPE 13337/30).
The European Commission and the Belgian Presidency of the Council of the EU will discuss the progress made in the work aiming to provide the digital euro, should it come to be launched, with a legislative framework (see EUROPE 13211/11).
A European source indicated on Tuesday, 9 April, that the meeting will also be an opportunity for ministers from countries outside the euro area to present the work they are undertaking with regard to the creation of digital central bank currencies, such as “e-krona in Sweden”, to their counterparts.
Regarding the macroeconomic situation, ministers will be informed of monetary policy decisions taken by the ECB. Inflation continues its downward trajectory on a broad basis, with an average rise in prices that has fallen from 10.6% 18 months ago to 2.4% in March. “Inflation in the services sector remains somewhat static”, [the source] noted.
Competitiveness. Ministers will continue their discussions on competitiveness levers for the euro area. Having discussed energy in February, they will tackle the issue of trade, particularly its fragmentation at the international level. Professor Richard Baldwin—a specialist in economic globalisation at Swiss business school IMD—will illustrate their work.
“Competitiveness will be high on the EU agenda”, this source believed, alluding to the upcoming discussions at the European summit on 17 and 18 April that will be based on Enrico Letta’s report on the single market (see EUROPE 13387/1). Former ECB President Mario Draghi—whose name has also been going around for the next European Commission—will submit a second report on the single market to European leaders in June. (Original version in French by Émilie Vanderhulst and Mathieu Bion)