PRESIDENT OF THE EUROGROUP TRAVELS TO BRUSSELS TODAY TO ENGAGE WITH EUROPEAN COUNTERPARTS ON DRAFT BUDGETARY PLANS

The Minister for Finance and President of the Eurogroup, Paschal Donohoe, T.D., will travel to Brussels on Monday 6th and Tuesday 7th December to attend Eurogroup and ECOFIN, and for a series of bilateral meetings.

Today, President Donohoe will chair a meeting of the Finance Ministers of the euro area. The agenda will begin with a discussion on the 12th Greek enhanced surveillance report, followed by post programme surveillance for Ireland, Cyprus, Portugal, and Spain. The IMF Report was overall positive and risks for Ireland's repayment capacity remain low.

Ministers will discuss and agree the Eurogroup work programme for the first half of next year, which is the third of Minister Donohoe's presidency. This work programme continues the work already underway, and will focus on a number of priorities, including economic and fiscal policies to support the recovery and long-term growth, strengthening the Banking Union, the euro as a digital currency, and the international role of the euro.

IMF Managing Director Kristalina Georgieva will present the findings of the IMF Article IV mission to the euro area.

The Commission will present first on the euro area recommendation and then on the Draft Budgetary Plan (DBP) opinions and communication. Ministers will agree a statement on the DBPs, which will also make reference to recent economic developments - recognising recovery has been more positive than expected but also that the environment has changed again - and that the fiscal stance remains supportive of recovery, and setting out process for Eurogroup discussions on the Economic Governance Framework review in 2022.

After the Eurogroup meeting, Minister Donohoe will host a dinner for Ministers (in inclusive format) in order to discuss preparations for the upcoming Euro Summit, including how to make progress on Banking Union.

Also in the margins of the Eurogroup, is his role as President of the Eurogroup, Minister Donohoe will have a meeting with his Greek counterpart, Minister Christos Staikouras, to discuss Greek enhanced surveillance.

Minister Donohoe stated:

"I look forward to this meeting that includes discussion on our budget plans for next year. The euro area economy recovered strongly in 2021. At the same time, some risks, such as the emergence of the Omicron variant, contribute to a high level of uncertainty. But I am confident about our ability to sustain a strong recovery into next year. The deployment of the Recovery Fund will play an important role in shielding us from emerging risks. Our economies have demonstrated their capacity to adjust to evolving circumstances on the health front."

Tomorrow, Minister Donohoe will attend the ECOFIN meeting. EU Finance Ministers will exchange views in particular on economic recovery in Europe and the implementation of the Recovery and Resilience Facility, and the Commission's Annual Sustainable Growth Survey 2022 and Council Recommendation on the economic policy of the euro area.

Minister Donohoe will also meet with the Belgian Prime Minister, Alexander de Croo, and Minister for Finance, Vincent van Peteghem.

The core focus of the meeting with Minister van Peteghem is the economic governance of the European Union, and the next steps in the completion of Banking Union. The strong coordination of economic and fiscal policies across the euro area in order to drive a strong economic recovery is one of Minister Donohoe's key objectives as Eurogroup President. Growth figures for the third quarter show that the euro area has almost returned to pre-pandemic levels of output, which is a recovery ahead of forecast, and GDP growth forecast for 2021 approximately 5%. However, euro area Ministers are working together to address the risks posed by the development of the pandemic over the winter months and the challenges posed by the stronger than forecasted recovery in terms of higher inflation and supply chain pressures.

06 December 2021

ENDS

Notes to Editor:

Minister Donohoe was elected President of the Eurogroup in July 2020. Further information on the Eurogroup Work programme can be found at:

https://www.consilium.europa.eu/en/council-eu/eurogroup/president/