Eurogroup President discusses Eurozone economy and structural reforms with Germany's finance minister

The Eurogroup President said he met Lars Klingbeil, Germany's Vice Chancellor and Federal Minister of Finance, to discuss the economic situation in the Eurozone and the Eurogroup's current and upcoming priorities. He thanked Klingbeil for his welcome and for his leadership at the Eurogroup on what he described as "existential challenges" that have been under discussion for months.

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He said the broader geopolitical context remains exceptionally difficult. He cited the ongoing war in Ukraine, instability and uncertainty in the Middle East, persistently high energy costs, and inflationary pressures affecting businesses and households across Europe.

He said those shocks have created an unpredictable environment for growth, investment and economic policy. Despite that environment, he said Europe has shown significant resilience and that growth in the Eurozone has held up better than originally feared so far.

He said, however, that the bloc still needs to strengthen economic performance while maintaining commitment to sustainable public finances. He added that budgetary discipline alone will not deliver the growth and economic sovereignty Europeans need.

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He said Europe must address structural weaknesses that are holding it back. Among the priorities he named were deepening the single market, accelerating the savings and investments union, and overcoming fragmentation in the energy market.

He said those issues remain central to the Eurogroup's work. He also said he and Klingbeil discussed the Eurogroup's priorities for meetings in Dublin this week and later in the year.

He said fiscal space will increasingly be limited and that spending pressures are rising, especially for defence and because of ageing and climate change. He described improving the effectiveness and efficiency of public finances as an important topic.

Looking ahead, he said the Eurogroup will take stock over the next few months of common challenges and opportunities relating to public finances, expenditure, revenue and governance. He said the group will continue to work on financial integration, removing barriers to cross-border business and investment, advancing the savings and investments union, and pushing the market integration and supervision package.

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He also said the Eurogroup will promote a more strategic discussion on technology and artificial intelligence, as well as energy security, critical minerals and climate-related challenges, which he said are essential to competitiveness, strategic autonomy and long-term stability in the euro area.

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