In the coming period, the EU must prioritize fighting inflation and curbing sovereign debt, as inflation remains high and growth expectations lag.
The billions of aid governments have earmarked during the pandemic to keep companies afloat financially is “unjustified” by current developments, the Eurogroup wrote in a joint statement.
The ever-increasing energy and food prices are affecting businesses and households, but countries should focus their support measures on people who are already struggling to make ends meet. In their 2023 fiscal policy, the euro countries must focus on protecting the most vulnerable, the Eurogroup believes.
The Eurogroup, which is made up of the finance ministers of the nineteen euro countries, spoke in Brussels about the economic situation in the EU. It is heavily influenced by the Russian invasion of Ukraine at the end of February.
The European Commission will release new growth forecasts and inflation figures on Thursday. According to Vice-President Valdis Dombrovskis, average growth will be revised downwards and the average inflation rate upwards. Earlier this year, Brussels expected high inflation to be a temporary phenomenon.