First of all, I would like to warmly thank our Cypriot hosts for their excellent hospitality.
Today’s Eurogroup discussions took place at a particularly demanding juncture, at a time when Europe is being called upon to – and is showing that it can – respond with strategic direction, but also with political maturity.
The prolonged instability in the Middle East is intensifying, and it’s intensifying particularly the pressures on energy markets and supply chains, with serious consequences for critical sectors of the economy.
The situation in the Strait of Hormuz affects not only the flow of oil and natural gas, but also the transport of strategic products such as fertilizers and helium, which are essential for industry, production, and the overall functioning of the European economy.
Today, the European Commission briefed us on the updated growth and inflation outlook for the euro area. According to the baseline scenario, growth is expected to stand at 0.9% this year and 1.2% in 2027 – lower than previous forecasts, but clearly far from a recession scenario.
At the same time, inflation is facing renewed pressures, although we’re not experiencing the extreme conditions we faced in 2022.
What is important is that the European economy continues to demonstrate resilience despite the successive crises of recent years, and this is the result of responsible policies and stronger European coordination.
As the crisis persists, Europe must maintain a difficult but necessary balance. On the one hand, it is crucial to protect fiscal stability, but on the other hand, we cannot ignore the significant pressures faced by households, businesses, and the European economies themselves.
What is needed is adaptability and carefully designed collective interventions aimed at supporting the economy without undermining long-term stability. Europe’s credibility is defined not only by its commitment to the rules, but by its ability to move forward with a common approach.
This is exactly the perimeter of the measures that the Commission has suggested: temporary, targeted, and tailored, commensurate with the long-run strategic priorities of Europe.
And if I may add, in the previous meeting, the IMF showed us that everything we have done since 2022 has allowed us to be able to say that the impact of the crisis is 12% less compared to what it would have been had we not done the requisite energy policy adaptations that we did since then.
Earlier this week also, some Eurogroup members discussed within the framework of the G7 the impact of the crisis on the global economy. France, which currently holds the G7 presidency, informed us today about the main conclusions of these discussions.
The current situation requires, more than ever, close coordination within the EU and at the international level. That was the message that Europe sent to its partners. We are committed to cooperating within a multilateral framework, and we’re committed to ensuring stability, resilience, and shared prosperity.
We also had, I would add, an extremely substantive discussion on the housing crisis, an issue that now directly affects the daily lives of millions of European citizens.
Access to affordable and decent housing has become a central economic and political challenge for Europe, as it affects productivity, labor mobility, inequality, and ultimately the cohesion of our societies.
The fact that such issues are now at the centre of the Eurogroup agenda shows that European policy is not only limited to the management of economic figures; its real strength lies in its ability to respond to the real pressures and needs experienced by its citizens.
We listened with interest to the experience of countries that have addressed certain aspects of the problem effectively.
At the same time, there was a common understanding that there are no one-size-fits-all solutions that can be applied uniformly everywhere. National particularities often require different policy approaches.
Finally, we had the opportunity to discuss with Aurore Lalucq, the Chair of the European Parliament’s Economic Affairs Committee, the legislation regarding the digital euro.
The digital euro is an important strategic priority for maintaining trust and stability in an increasingly digital financial environment. For this reason, I welcome the progress achieved so far by the European Parliament.
Ahead of the interinstitutional negotiations, which I hope will begin during the summer, it is important that all parties cooperate so that the legislation can be finalized by the end of this year.
Let me add that under the leadership of Christine Lagarde, I believe that this project will be material by 2029. It’s an existential project for Europe, and it’s a project where we can indeed see our sovereignty increase and the international role of the euro augment.
Ladies and gentlemen, Europe has repeatedly shown that it moves forward when conditions become difficult and when challenges require political courage, coordination, and common direction. Today, we once again find ourselves at such a moment, and we have both the determination and the capacity to respond.