09 January 2023

Introductory remarks of Eurogroup President Paschal Donohoe at Istituto Luigi Sturzo event in Rome

...the EU is now well placed to become the global leader in renewable energy, and for the euro to become the global currency most associated with and most benefitting from the transition to a lower-carbon future.

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Opportunities for the Euro

The new geopolitical reality also creates opportunities that we must take advantage of. As the war is drastically accelerating our energy transition, the EU is now well placed to become the global leader in renewable energy, and for the euro to become the global currency most associated with and most benefitting from the transition to a lower-carbon future.

Europe has given itself the means to fulfil its green ambition and create the conditions for sustainable growth: Next Generation EU is an €807 billion fund (in current prices), to build a greener, more digital and more resilient future.

This, coupled with €20 billion of new grants from RE Power EU and private funding, gives us the means to build clean-energy infrastructures, transition to renewable-energy sources and improve the energy performance of our buildings and vehicles as we seek to become climate-neutral by 2050.

Importance of implementing agreements for future policy development

An instrument such as Next Generation EU, funded through common debt issued by the EU, would have been unthinkable a few short years ago.

Previously a taboo concept for many countries, it only became a reality when it became clear that the scale of the economic challenges caused by the Covid-19 pandemic could not be overcome by countries acting alone, and solidarity between members of our union was needed, because we are more than the sum of our parts when we work together.

The creation of this instrument was made possible by the rigorous commitments made by each member state made towards structural reforms and accountability in their investments.

But I am certain that member states must implement their agreed commitments. That is true across the board. We negotiate agreements in good faith that all parties will implement their commitments. This trust is central to the operation of the EU.

We are in the midst of a very challenging geopolitical and economic situation. Therefore, any step that can be taken to strengthen the Economic and Monetary Union sends a strong signal in terms of EU solidarity, coordination, and strength.

That’s why I am convinced that we will achieve progress on the ratification and implementation of ESM Treaty. This reform is crucial as it gives us more common tools to deal with crises, not least by introducing a further financial backstop in case of bank failure.

Currency Overcoming Crises

Another strong signal of the strength of our Economic and Monetary Union is Croatia’s adoption of the euro from the first of January this year, becoming the twentieth member of the Eurozone.

Building on the expansion of the Single Market, our shared currency is one of the most tangible achievements of European integration. It is a European tool that we see and use every day.  The euro makes our lives easier in practical terms such as travelling and trading with our fellow Europeans.

However, on a deeper level, the euro is reflective of a common European identity, symbolic of integration as a guarantor for stability and prosperity in Europe, and our most tangible demonstration of European strength and unity.

The euro is proof of what we can achieve when we work together – we must work together to make it a symbol of our commitment to secure a prosperous, sustainable and inclusive future for coming generations.

We must not forget that our common currency is an unprecedented collective endeavour and a testament to the unity imbued by the core principles that underpin our Union. All those who use the euro – even those beyond our borders – are beneficiaries of the European Union’s stability, democracy, and fundamental rights.

Now, with war once again on our borders, the benefits of these deep-reaching foundations of our currency and our union are self-evident, and in stark contrast to those States lacking democratic and rules-based principles.

Conclusion

When I am preparing my thoughts for an event such as this, I like to research and find inspiration in the city – and with a city like Rome, there are so many great thinkers and writers to choose from. Although it may be an obvious choice, I was struck by this quote from your founder, Luigi Sturzo:

“It is a widespread opinion that common morality does not apply to politics… But my experience, long and painful, makes me conceive of politics as a stature of ethics, inspired by love of neighbour, made noble by the purpose of the common good."* 

This noble purpose, this common good…an apt reminder of the role of the EU, and a fitting note to conclude on.

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* Full quote is “There are those who think that politics is an art that can be learned without preparation, practiced without skills, implemented with cunning. It is also a widespread opinion that common morality does not apply to politics, and there is often talk of two morals, that of private relationships, and the other (which would be neither moral nor moralizable) of public life. But my experience, long and painful, makes me conceive of politics as a stature of ethics, inspired by love of neighbour, made noble by the purpose of the common good.”

Luigi Sturzo – Il Popolo, 16 December 1956; Politics of these years (1954- 1956)

Eurogroup

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