Eurogroup President Paschal Donohoe said on Friday that he was expecting economic growth in the euro area in 2023, but called for vigilance under the present financial circumstances
MOSCOW (Pakistan Point News / Sputnik - 24th March, 2023) Eurogroup President Paschal Donohoe said on Friday that he was expecting economic growth in the euro area in 2023, but called for vigilance under the present financial circumstances.
"Despite the huge challenges that we have faced in 2022, the euro area in the face of those challenges showed its resilience. It grew by over 3%. While we expect a lower rate of economic growth this year, we still expect the euro area to grow ... Recent developments that have taken place in financial markets and in banks across the world remind us of the need to be ever vigilant and continue to monitor risks as they develop," he said before the European Council meeting on inflation.
Donohoe noted that the countries of the euro area should continue to coordinate and gradually adjust their budget policies.
"We do need to maintain support for our societies, particularly for the most vulnerable, but we strongly acknowledge that measures that increase demand within our economies and permanently increase borrowing will no longer be wanted in the face of the change that is taking place," he added.
Donohoe also advocated "steady progress" on the path to the creation of a European banking union.
The Eurogroup is an officially recognized term used for informal meetings of the finance ministers of euro zone members. The Euro area includes the 20 member states of the EU that have adopted the euro as their Primary Currency: Austria, Belgium, Croatia, Cyprus, Estonia, Finland, France, Germany, Greece, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Portugal, Slovakia, Slovenia, and Spain.
