The Eurogroup ministers will hold an exchange of views on the coordination of budgetary policies within the euro area on Monday 10 March.
A European source explained on Friday 7 March: “The intention is to discuss experiences so far with immediate fiscal structural plans, how it has worked with national budgetary processes, how it has contributed to strengthening national ownership of the fiscal framework”. In particular, they will discuss “spending pressures ... in the area of security and defence”.
After the Eurogroup meeting, the Polish Presidency of the Council of the EU will organise discussions on the fiscal framework at an informal ministerial dinner, as a follow-up to the European Council meeting on Thursday 6 March (see EUROPE 13594/1).
Declining growth. Beforehand, the ministers will review macroeconomic developments and prospects in the euro area. GDP growth forecasts have been revised downwards. This situation is mainly due to the persistent weakness of investment and external demand.
“The conditions are there for the economy to strengthen this year, the labour market remains relatively robust and financing conditions are easing”, explained a European source.
The new Austrian Finance Minister, Markus Marterbauer, will then be invited to present his government’s political priorities.
G20. From 4.30pm, the Eurogroup will meet in an inclusive format with 27 members. The President of the Eurogroup will report to the ministers on the G20 meeting of finance ministers and central bank governors, which took place in Cape Town, South Africa, on Wednesday 26 and Thursday 27 February.
Crypto-assets. The ministers will then examine developments in crypto-asset activities and markets and their implications for the euro area and the European economy. They will assess developments in these markets and discuss the opportunities and challenges they present.
“If there’s one thing that we've learned over the last month and a half is that the new administration in Washington is prepared to use all sources of leverage it has in negotiations, in pressuring other countries when it sees it to be in American interest. So we need to think carefully”, said the source. “What parts of our economy do we consider prudent to be allowed to rely on structures that are inherently American and controlled by the US?”
Recent geopolitical upheavals are rekindling a climate of caution and vigilance, just as the European Parliament is due to hold discussions on the introduction of a ‘digital euro’, a regulated electronic currency issued by the European Central Bank that would complement cash and existing means of payment (see EUROPE 13577/8).
Capital markets. Lastly, the ministers will examine ways of maintaining the political momentum in favour of Capital Markets Union (CMU), one year after a key declaration in which the European ministers urged the European Commission to make rapid progress on the legislative front through a package of 13 measures (see EUROPE 13368/3).
The Presidency of the Eurogroup is expected to reaffirm the need to continue efforts towards greater integration of these markets, despite the growing imperatives of defence and security, a source said.
In addition, President Paschal Donohoe will present the main elements of the letter he will personally address to António Costa, who will chair a European Council focusing on issues relating to economic and monetary union on 20 and 21 March (see EUROPE 13571/21). (Original version in French by Anne Damiani and Bernard Denuit)