Remarks by Commissioner Dombrovskis at the ECOFIN press conference

Thank you, Minister. Good afternoon, everyone.

We started this morning with discussions on the EU's economic outlook.

Despite some positive recent data releases, the outlook remains broadly unchanged, as do our structural challenges.

This underlines the need to maintain focus on implementing the measures needed to unlock our full growth potential.

Moving to our regular update on Ukraine.

Russia's full-scale invasion is now approaching its fifth year.

It has continued its brutal attacks on energy infrastructure throughout the winter.

So we must substantially step up our support.

I presented an update on our €90 billion Ukraine Support Loan and also on ERA loans payments, as well as on the upcoming IMF Board meeting to approve the new programme for Ukraine

Time is of the essence.

Following the positive vote in the European Parliament - and with the support of the Cypriot Presidency - we aim to conclude the legislative process next week.

In parallel, we are engaging with the Ukrainian authorities to facilitate a swift disbursement once the legislative process has concluded, preparing its Financial Strategy and the conditions for this funding. 

As well as supporting Ukraine, we continue to exert maximum pressure on Russia's war economy.

The European Commission has proposed a 20th sanctions package, with new measures targeting energy, financial services, and trade.

We call on Member States to swiftly endorse this new package.

The Commission also provided its regular update on the Recovery and Resilience Facility.

Total disbursements now stand at €394 billion.

We are now very much on the home straight.

That's why we reiterated our call for Member States to accelerate implementation on the ground ahead of the August deadline.

In this context, I welcome the endorsement of amendments to Lithuania's recovery and resilience plan.

25 Member States have now streamlined their plans, reducing the total number of outstanding milestones and targets by 20%.

This should greatly facilitate implementation in the months ahead.

I also provided an update on the state of play of the SAFE instrument.

The Commission has positively assessed the defence investment plans of 16 Member States, and nearly €113 billion in SAFE loans have been allocated.

We will present our assessment of the remaining three plans soon.

It is important that Member States fully take into account the budgetary implications arising from the absorption of SAFE loans.

For those Member States that have not activated the national escape clause, SAFE-financed expenditure must be accommodated within the recommended net expenditure growth path.

For those that have activated the national escape clause, SAFE-financed expenditure qualifies for flexibility, limited to a maximum amount of 1.5% of GDP until the end of 2028.

The Commission will monitor this closely.

I also welcome the Council's activation of the national escape clause for Austria to facilitate its transition to a higher level of defence spending.

The national escape clause provides targeted flexibility in exceptional circumstances, while safeguarding debt sustainability.

Of course, this flexibility is temporary.

This period must be used well to reprioritise budgets and prepare for a permanently higher level of defence spending.

This morning, we also heard from President Calviño, who gave a preview of the annual EIB Group Investment Report.

The Commission values the positive cooperation with the EIB Group on financing investments in critical sectors of the economy, including in security and defence, and sees scope for even greater impact in the future.

We held a constructive exchange on the Commission's proposals to boost supplementary pensions as part of our broader Savings and Investments Union strategy.

The aim is to boost both the demand and supply of supplementary pensions to help citizens secure adequate income in retirement.

The Council adopted a recommendation on the discharge to be given to the Commission for the implementation of the EU general budget for 2024.

And finally, I welcome the Council's approval of the euro area recommendation for 2026.

The recommendation calls on Member States to pursue policies to promote productivity and innovation, safeguard fiscal sustainability, and complete the implementation of recovery and resilience plans.

It serves to guide the important work ahead of us this year.

Thank you.