Eurogroup welcomed Croatia to the euro family – 16 January 2023

Euro area enlargement: update on euro cash changeover in Croatia

The Eurogroup marked the particular occasion of Croatia’s euro accession. The Croatian minister, the Commission and the ECB updated ministers on the state of play on the changeover to the euro.

Digital euro: stocktake on the advancement of the project

The Eurogroup took stock of the advancement of the digital euro project and discussed the way forward. Ministers adopted a Eurogroup statement which summarises the views expressed on the policy topics discussed so far and outlines the continuation of the Eurogroup involvement in this project.

After 18 months of very detailed discussions in relation to different strands of this project, we took some time to reflect on the work that has happened, on where we are now, and on the views of the Eurogroup on key areas of this project. What we plan to do is continue with our political engagement with the ECB and with the Commission as they move forward in their processes, because what the Eurogroup recognised today is that many decisions that await are inherently political.

Paschal Donohoe, President of the Eurogroup

Economic situation and IMF Article IV review of euro area policies – interim staff visit

The International Monetary Fund presented the outcome of its interim Article IV staff visit to the euro area. The IMF review is expected to be concluded by mid-2023. Ministers also heard from the institutions on their assessment of the latest macroeconomic developments and outlook.

The Article IV review of the euro area is a regular exercise in which the IMF reviews economic developments, consults with euro area policy-makers and provides targeted policy advice. The discussions in the Eurogroup are a valuable opportunity to exchange views on current developments and emerging challenges.

Ministers continued their coordination exercise on fiscal policy focusing on the energy support measures, with a presentation of case studies. The French and Dutch ministers presented their national experience and provided a basis for the Eurogroup to discuss the challenges faced in designing and implementing measures to alleviate the impact of the surge in the price of energy on households and firms.

Euro area aspects of the economic governance review

Ministers discussed the euro area aspects of the economic governance review, such as the draft budgetary plans exercise, the euro area fiscal stance and macroeconomic stabilisation, as well as the post-programme surveillance process and the application of the Macroeconomic Imbalances Procedure to euro area member states.

The euro area recommendations for 2023

Ministers discussed the draft recommendations on the economic policy of the euro area for 2023, ahead of their approval at the Economic and Financial Affairs Council.

Based on Commission proposals, the Council addresses annual recommendations on economic policy to the euro area as a whole within the European Semester. The recommendations are first discussed in the Eurogroup and formally adopted by the Council after endorsement by the European Council at its meeting in March.

More information: European Council