Remarks by Commissioner Dombrovskis at the Eurogroup press conference

Thank you, Kyriakos. Good evening, everyone.

First we had our regular exchange on the macroeconomic outlook, which focused on fiscal-related issues.

The energy shock, weaker growth, higher interest rates and defence needs are all placing pressure on public finances.

And next year's budgets must reflect that reality.

Careful calibration, consolidation measures, and rigorous prioritisation are essential.

This is the only way to safeguard fiscal sustainability while addressing our urgent priorities.

I would like to thank Managing Director Kristalina Georgieva for presenting the conclusions of the IMF's annual consultation on euro area.

The European Commission and the IMF share a broadly convergent assessment.

On reforms, we concur with the IMF's emphasis on three priorities: enhancing the resilience of our energy system, deepening our Single Market, and advancing the Savings and Investments Union.

On fiscal policy, we agree that Member States should already begin planning for the period after the national escape clause.

This is essential to ensure that the fiscal adjustments required thereafter are orderly and gradual.

Next, we held a substantive discussion on strengthening Europe's energy security and economic resilience, drawing on a presentation by Managing Director Georgieva.

This was a very timely discussion.

The European Commission continues to insist that we learn from the lessons of previous crises.

Support measures households and businesses in the current energy shock context must be temporary and targeted and should not increase the aggregate demand for fossil fuels.

At the same time, we must scale-up homegrown clean energy, continue electrification and strengthen our grid infrastructure.

These priorities were also reflected in the European Semester Spring Package the European Commission presented last week.

Where also now, upon request by a Member State, the scope of the current National Escape Clause for defence can be broadened for energy measures that reduce our dependence on fossil fuels.

This provides Member States with the space to address the structural causes of the energy crisis while preserving fiscal sustainability.

We also held a substantive discussion on the economic dimensions of European technological sovereignty.

Digital technologies – in particular AI, cloud and chips – will be central to Europe's future productivity and growth.

Tech sovereignty and competitiveness go hand-in-hand and should be pursued together.

The European Commission's recent Tech Sovereignty Package seeks to do exactly this: strengthening resilience, reducing strategic dependencies and supporting Europe's capacity to develop and scale critical technologies.

This ambition must be matched by resources.

We urgently need to mobilise private capital to step up and fund our largest, most strategic projects.

That underlines the need to deepen and integrate our capital markets.

This is another example of why advancing Europe's Savings and Investments Union remains an urgent priority.

There is also an energy angle.

We must manage the growing energy demands of digitalisation while unlocking the immense opportunities that innovation places within our reach.

Thank you.