Main results of the Eurogroup on 23 May 2022

Regular format

Macroeconomic and fiscal developments in the euro area

Ministers discussed the macro-economic developments on the basis of the Commission Spring Forecast. Based on the updated economic outlook, the Eurogroup discussed the appropriate policy response, in view of the current economic challenges, with a focus on fiscal policies.

The Eurogroup has consistently emphasised that our fiscal strategy should be agile and responsive to unfolding events. This approach remains all the more relevant as heightened uncertainty needs sufficient flexibility. That’s why the Commission’s announcement on keeping the general escape clause activated for another year is an important development. At the same time, this decision doesn’t change our objective of progressively shifting our fiscal stance from supportive this year to neutral next year. There is broad agreement amongst ministers that we need to strive to continue to make our budgetary policies and decisions as sustainable as possible in this uncertain environment. So we will be following up on the discussion today in more depth in the next couple of months. The policy trade-offs are very complex and we will take the time necessary to get the policy balance right. We will aim to adopt a statement on the budgetary stance for next year at our July Eurogroup meeting.

^{Paschal Donohoe, President of the Eurogroup}

Spring 2022 economic forecast (European Commission)

Managing Director of the ESM

Following the call for candidates for the position of Managing Director of the European Stability Mechanism (ESM), ministers had an exchange of views on the candidacies received.

Draft Budgetary Plans

Ministers received a presentation from the Commission on its opinions concerning the updated Draft Budgetary Plans of Germany and Portugal. The Eurogroup then issued a statement.

Eurogroup statement on the updated draft budgetary plans of Germany and Portugal (press release 23 May 2022)

Draft budgetary plans 2022 (European Commission)

Inclusive format

Banking Union

Ministers discussed the draft work plan for the completion of the Banking Union, building on the progress made during the Eurogroup in inclusive format of 3 May and the work done by the High-Level Working Group (HLWG) since then.

We will work hard in the time ahead to set the path for the future of this vital and common project. I will re-engage on this again in June to find an agreement. I continue to reflect on all the arguments that I heard today on Banking Union, and I’ll engage with all ministers and do my very best to help reach a balanced compromise.

^{Paschal Donohoe, President of the Eurogroup}

Banking Union (background information)