Opening remarks by Commissioner Gentiloni at the Eurogroup press conference
07 December 2022
With the documents that we have approved, we have supported a consistent policy mix to support growth, reduce inflationary pressures and address fragmentation risks.
Macroeconomic developments
- On the economic outlook, our economic forecast presented only one month ago is still solid.
- Survey data are confirming our estimations that we will have a
couple of quarters of contraction in winter and that growth will remain
subdued next year.
- Second, the external environment, meaning the global situation, looks to be weakening further.
- Third, our forecast for inflation was confirmed by recent data. Our
forecast was that inflation was peaking in this end of 2022, but we
should be in any case very cautious and aware that decline will only be
very gradual next year.
- Fourth, the bright spot in the outlook is that labour markets remain
very robust. Of course our strong policy response during the pandemic,
including the SURE programme, has contributed to this. But we know that
labour markets are reacting to crises with different timings, so we
should continue to monitor this.
Draft budgetary plans
- With the documents that we have approved, we have supported a
consistent policy mix to support growth, reduce inflationary pressures
and address fragmentation risks.
- The euro area fiscal stance is projected to be broadly neutral in
2023, after the expansionary period of 2022. But this very much depends
on whether Member States roll back energy-related measures as projected.
If existing measures are prolonged or new ones are enacted, deficits
could increase markedly more than forecast.
- That is why we encourage Member States to improve the targeting of
these measures. We have recommended replacing broad-based price measures
with a cost-efficient two-tier energy pricing system that ensures
incentives for energy saving. I am happy to see that this proposal was
well received by Member States. We had a good discussion on these issues
today.
- In the longer term, we need sustained public investments in the
green and digital transition, so the fact that all Member States plan to
finance such investments, which is very clear in our draft budgetary
plans, is most welcome. In other crises we were not able to continue
with a high level of public investment, which is instead the case in the
present crisis.
- Of course, the only lasting solution to the current crisis is to
reduce our dependence on imported fossil fuels. Here we are making
significant progress. EU gas demand in November was well below the
average of the past five years and diversification of suppliers is well
underway. And today, the ban on seaborne shipments of Russian crude
enters into force, along with the price cap agreed over the weekend.
- We are also taking forward with determination our dialogue with
Washington on the Inflation Reduction Act. And as President von der
Leyen underlined yesterday, against the backdrop of increasing global
competition for clean tech investments, we are reflecting on how to
simplify and adapt our own state aid rules and how to best support our
common European industrial policy.
Economic governance review
- Today we also had a first brief exchange on our proposals to reform
the economic governance framework, focused on euro area aspects.
- We will have a broader discussion during tomorrow's ECOFIN. I firmly
believe that we must work to achieve a rapid convergence on this
reform, at the latest in time for the 2024 budgetary cycle. We are aware
that we need to build this consensus, but this was still considered a
useful basis by all Member States.
Greece
- Finally, I would like to congratulate Greece. This was the first
post-surveillance report for Greece, meaning that the enhanced
surveillance period is over. This is a very important result and
excellent news for Greece, the Greek people and the Greek authorities.
Commission
© European Commission
