Ladies and gentlemen, good evening.
I would like to begin with the conclusion of today’s meeting, because I believe it captures effectively the most important message.
Budgets, public debt and fiscal rules remain at the core of the Eurogroup’s mission. They will continue to form the foundation of our economic policy.
But the economy is changing at a pace we have never experienced before, and with it the issues that finance ministers are called upon to address. Competitiveness, technology, artificial intelligence, energy security and geopolitics are no longer separate policy areas. They are different dimensions of the same economic reality.
That is why the Eurogroup must evolve together with the economy it serves. Our responsibility is not only to safeguard the stability of the euro area, but also to help create the conditions for its long-term competitiveness and prosperity. This is why we devoted a significant part of today’s meeting to artificial intelligence and digital finance.
Artificial intelligence has the potential to rewrite the rules of the global economy. Above all, it has the potential to raise productivity in our economies. And productivity is the foundation of long-term growth, competitiveness and prosperity. AI will affect people’s lives, investment, the way businesses operate, together with labour markets, the financial system and, ultimately, the way growth is generated.
Today, we had the pleasure of welcoming Arthur Mensch, Founder and CEO of Mistral, one of Europe’s leading AI companies. We discussed not only the implications of artificial intelligence for financial stability, but also the conditions Europe must create to ensure that the technologies of the future are developed here in Europe.
Artificial intelligence can significantly strengthen our financial system by improving risk management, increasing the efficiency of financial services and enhancing our resilience against ever more sophisticated cyberattacks. At the same time, however, those very capabilities can also be used maliciously, creating new vulnerabilities and new systemic risks. It is no coincidence that both the European Systemic Risk Board and the Single Supervisory Mechanism placed particular emphasis this week on the risks associated with frontier AI models.
But there is also, I would add, a deeper strategic dimension. Artificial intelligence is the technology that will shape competitiveness and economic power in the twenty-first century. Europe must create the right conditions, mobilise the necessary capital and enable its companies to achieve the scale to compete globally, so that the next generation of global AI champions is born, grows and remains here in Europe.
The same philosophy guided our second major discussion, on digital finance. After several months of work, we concluded this dedicated workstream with the adoption of a common Eurogroup statement.
Our conclusion is quite clear. Europe must move with speed and ambition to harness the opportunities offered by digital finance for growth, competitiveness and economic sovereignty. Achieving this transition requires close cooperation between the public and private sector. Innovation should be driven by markets, while public authorities must provide a clear regulatory framework, legal certainty and the necessary safeguards. Our common statement sets out priorities to strengthen legal clarity, support the development of new digital financial products and ensure that we are better prepared for the risks that will accompany this transition.
In this context I would like to take the opportunity to welcome the positive outcome of the vote on the digital euro in the European Parliament earlier today.
The digital euro stands at the core of our digital finance agenda for retail payments. It will ensure that citizens have access to a secure and convenient form of digital public money, which will act as a trusted anchor in an increasingly digital landscape.
The discussions on AI and digital finance also reflect the philosophy underpinning the new Eurogroup work programme, which we approved today for the next twelve months. It is built around four strategic priorities: fiscal policy coordination; the savings and investment union; competitiveness and economic security; and strengthening the euro as an international, digital and strategic currency.
We will systematically broaden our discussions to include issues such as defence financing, energy security and technological sovereignty. It is the responsibility of finance ministers to assess the macroeconomic and fiscal implications of these developments, so that our decisions strengthen both stability and the long-term resilience of the European economy.
We then discussed fiscal policy coordination and the overall fiscal stance of the euro area, as Member States prepare their budgets for next year.
The environment continues to be characterised by exceptionally high uncertainty, particularly in light of developments in the Middle East. At the same time, we must strengthen our defence capabilities, reinforce our energy security and protect the public investment needed to support growth, while preserving Europe’s social model. All of this must be achieved without compromising fiscal sustainability. That is why maintaining the credibility of the fiscal framework we agreed two years ago remains essential. Sound public finances are a prerequisite for a competitive European economy.
Finally, we discussed the international role of the euro. The presentation by the European Central Bank confirmed that the euro continues to strengthen its international position despite geopolitical uncertainty. We agreed that further reinforcing the euro’s global role depends on strong economic fundamentals and continued progress on the savings and investment union, the single market and digital finance.
If there is one conclusion to draw from today’s meeting, I think it is this: stability remains the foundation of Europe’s economy. But competitiveness will determine Europe’s place in the world. That is why we are broadening the Eurogroup’s agenda, and that is the direction our Presidency will pursue in the months ahead.