Remarks by Commissioner Dombrovskis at Eurogroup press conference

Thank you, Kyriakos. Good evening, everyone.

Let me begin with the European Commission's assessment of the economic outlook.

As a result of the war in the Middle East, energy prices have surged, with oil surpassing $125 dollars a barrel last week.

Higher energy prices affect every actor in the European economy, firms and families alike.

They are pushing the EU economy onto a path of weaker growth and higher inflation.

Its direct effects are being compounded by declining confidence, tighter financing conditions and softer external demand.

The overall economic impact will depend on how the conflict evolves, particularly its implications on energy supplies and infrastructure.

On a more positive note, our economies are now better prepared to absorb the energy shock than in 2022.

Since Russia launched its full-scale invasion of Ukraine, we have diversified our natural gas supplies and rapidly deployed renewables.

Still, the overall outlook remains highly uncertain.

The Commission will present more detailed projections in our Spring Economic Forecast later this month.

Turning now to the policy response.

It is clear that the war will have serious consequences for Europe's public finances.

And sound public finances are our asset to maintain macroeconomic stability in an unpredictable and challenging world.

Our room to manoeuvre is already more limited today on account of higher deficit and debt levels, a higher interest rate environment and the urgent need for additional defence spending.

So we simply cannot afford to repeat the mistakes of the past.

It is therefore essential that any support measures are temporary, targeted and do not increase aggregate energy demand. 

That was the message reiterated by the IMF representative at today's meeting.

Our first assessment of measures taken by Member States so far show that they could do better in targeting them at those who are most impacted.

The AccelerateEU Communication adopted by the Commission last month provides examples of well-designed policies in line with these principles.

They can help cushion the impact of the energy crisis on vulnerable consumers, households and energy intensive companies, while minimising fiscal costs.

The Communication also promotes coordination measures in areas such as filling gas storage facilities, exceptional releases of oil stocks, and the adoption of national measures.

Moving briefly to other items on today's agenda.

The inability to scale innovative companies into global champions is one of the EU economy's biggest structural weaknesses.

Today, we held a good discussion on improving financing conditions for our businesses based on the Financing Innovative Ventures in Europe Report.

It is clear that we must complete our Single Market and advance the Savings and Investments Union agenda to establish the conditions our companies need to grow and prosper.

Finally, we heard insightful presentations from the Chairs of the Single Supervisory Mechanism and the Single Resolution Board.

The Commission is determined to maintain the resilience and competitiveness of our banks, also in the face of evolving and sophisticated cybersecurity threats.

We will work closely with all stakeholders to achieve this objective.

To that end, our consultation on the competitiveness of the European banking sector closed on April 19.

And we will present its findings in a report on the competitiveness of our banking sector later this year.

Thank you.