Remarks by Commissioner Dombrovskis at the Eurogroup press conference

It's good to be back in Nicosia.

We started our discussion with macroeconomic developments.

Yesterday, I presented the European Commission's Spring Economic Forecast.

The conflict in the Middle East has triggered a new energy shock, affecting inflation, growth, and public finances across the EU.

Higher energy prices are already hitting households and businesses across Europe.

Overall, headline inflation in the EU is projected to reach 3.1% this year before easing to 2.4% next year.

The European economy is still expected to grow, but at a slower pace.

GDP growth in the EU is projected at 1.1% in 2026, before edging up to 1.4% in 2027.

The energy shock is also placing additional pressure on our public finances.

Ten Member States recorded deficits above 3% of GDP in 2025.

And by 2027, this number is expected to rise to thirteen.

We project the average EU budget deficit to increase from 3.1% of GDP in 2025 to 3.5% this year, and 3.6% next year.

Against this backdrop, we must remain vigilant in safeguarding sound public finances.

This means drawing the right lessons from past crises and ensuring that support measures remain temporary and targeted.

More broadly, while the energy crisis is our latest test, the broader challenges facing the European economy remain in place.

We must double down on our commitment to build a more competitive Europe to secure our long-term prosperity.

We also held a good discussion on the digital euro.

This project is central to Europe's efforts to strengthen our strategic autonomy and fully seize the opportunities of the digital age.

I welcome recent progress made in discussions within the European Parliament.

We must now maintain this positive momentum, with a view to concluding negotiations by the end of this year, in line with the “One Europe, One Market” roadmap.

The European Commission stands ready, as always, to provide all necessary technical support to help facilitate further progress.

Finally, we held a useful exchange on the economic challenges and policy options related to housing.

Of course, housing realities are mostly national, regional and local, so housing policy remains a national competence.

But the Commission's first-ever European Affordable Housing Plan, presented last year, sets out measures to help address the growing imbalance between housing supply and demand.

Ultimately, Europe needs more homes.

We must therefore focus on increasing supply

Including by simplifying regulations and permitting procedures and addressing labour shortages in the construction sector.

This can help create the conditions for a meaningful improvement in housing affordability.

Thank you.