Eurogroup President Kyriakos Pierrakakis stressed the need for European governments to act with “balance and responsibility” in the face of the economic impact of the crisis in the Middle East, noting that support measures should be “targeted, temporary and prioritise the most vulnerable households and businesses”.
“Our choices must reflect balance and responsibility,” the finance minister said after the Eurogroup teleconference, adding that “the measures taken at this time must be targeted, fair and effective, with priority given to the most vulnerable households and businesses.” He noted that the interventions should be implemented immediately, but should also remain temporary in order to tackle the crisis without creating “new, bigger problems in the future.”
The Eurogroup President said that the direction on how we should react has already been set by the European Council on 19 March and today this discussion continued in the Eurogroup, with the aim of formulating the right policies to support citizens and businesses. He noted that “we must remain consistent with the commitments we have made”, adding that “good fiscal management gives a country the ability to protect society and invest in its future.”
Mr. Pierrakakis described the current crisis affecting energy, trade, prices and overall economic stability as “alarming” and said that “increased vigilance, coordination and preparedness” is needed to support citizens. He admitted that the effects of this crisis – almost a month after the conflict began – are already beginning to be felt in the real economy, businesses and households, which is creating inflationary pressures and significant risks of lower growth across Europe.
According to Mr. Pierrakakis, what will determine the scale of the economic impact will be the duration and intensity of the crisis. He noted that uncertainty remains high, adding that “our common hope is to de-escalate and avoid significant and lasting disruptions to energy infrastructure and global energy markets.”
The Eurogroup President also stressed that Europe must not lose sight of its strategic objectives, noting that the energy transition and energy independence remain at the core of European policy. He said this crisis underlines the need for even more investment in clean energy, infrastructure and Europe’s energy economy.
Mr. Pierrakakis stressed that today Europe is called upon to play a dual role: to protect citizens today and to build a more resilient and competitive economy for tomorrow.
In this context, he placed particular emphasis on the Savings and Investment Union, describing it as a “key tool for growth” that can help boost competitiveness in the EU. He said that the finance ministers of the six largest EU countries presented relevant initiatives today, while the Cyprus Presidency provided an update on the progress of legislative work on the integration of European capital markets and the strengthening of European supervision.
Finally, the Eurogroup President said that the ministers discussed international economic developments ahead of the IMF and G7 meetings, referring to a period of profound changes in the global economy, against the background of geopolitical tensions, changes in trade, exchange rates and international economic balances.
Today’s Eurogroup meeting was held via videoconference instead of the scheduled meeting in Cyprus, which was cancelled due to developments in the Middle East. The discussion was also attended by the Executive Director of the International Energy Agency, Fatih Birol, who briefed ministers on the latest developments in energy markets.
