Eurogroup urges European governments to avoid undermining financial regulations

There was no direct reproach against Berlin from the meeting. “Given the strong repercussions on European energy markets, we will coordinate, among other things, the measures we take to protect the integrity and level playing field of the single market, while avoiding harmful fiscal adjustments,” Eurozone countries said in a joint statement. On the fiscal response to high energy prices and inflationary pressure, which was unanimously adopted, as highlighted by the Eurogroup President and the Irish Minister of Finance, pascal donor. In other words, to explain the content of the measures adopted at national level, with the support of several Member States as well as a German government benefiting from the meeting.

“If you compare the size of the German economy and the size of the large shield, it is proportional. It is not our intention to increase demand from the economy or completely remove all burdens from private households. It is simply a measure to protect the key structure of our economy,” Lindner said at the entrance to the meeting, considering the German plan similar to that adopted by other European partners. “Now is not the time to blame anyone, any Member State. We are in a period when we need to increase the common solidarity,” he said. Paolo Gentiloni, emphasizing, yes, the need to prevent fragmentation. “We managed to avoid the risk of fragmentation during the darkest weeks of the (covid-19) pandemic, and we must do the same today,” he insisted in an “entirely different” economic context.

The first voices criticizing the German plan came out last week. “Facing the common threats of our time, we cannot divide ourselves on the basis of the room for maneuver of our national budgets,” the acting Prime Minister of Italy, Mario Draghi, criticized. “The commission will be cautious about the impact of this initiative on fair competition conditions in the domestic market,” the domestic market commissioner said last Friday. Thierry BretonHe acknowledged that while countries like Germany can have 200,000 million, others cannot.

Despite everything rising from the French minister, Bruno LeMaire -“Focusing financial aid is essential if we want conditions of fair competition between member states…”-, Eurogroup has avoided bloodshed on this issue and focused on the need for a coordinated, united and solidaristic response. . “All governments are taking measures to respond to the energy crisis. “We recognize the need for greater coordination of national measures and a joint response to the escalating consequences of war,” he said. “It is important that we show unity, act like a bloc. Today, in these times of crisis, we believe in predictability even though we are in uncertain times.” Vincent van Peteghem.

The declaration, signed by nineteen euro countries, emphasizes that fiscal policies in 2023 should continue to focus on protecting the most vulnerable, without forgetting debt sustainability. “We are committed to protecting those who need it, but we also know that governments cannot fully protect their economies from the effects of unprecedented energy price increases, as the Eurozone is a net energy importer. Therefore, we aim to focus our support on income measures that are exceptional, temporary and target the most vulnerable,” they call for avoiding policies that increase inflationary pressures. The same message initiated by the vice president Valdis Dombvrovskis He advised to be cautious about the mix of economic policies implemented to ensure that the fiscal measures we took would return us to 2% inflation. European Central Bank.