Remarks by Commissioner Dombrovskis at the Eurogroup press conference

Thank you, Kyriakos. Good evening, everyone.

We had a full agenda at today's meeting, including a constructive exchange on the international role of the euro.

Today, the ongoing reshaping of the international monetary and financial system creates a unique window of opportunity for the euro.

One we should not miss.

The international role of the euro grew moderately in 2025.

This is a continuation of the trend seen over the past decade, in particular since the rise in geopolitical tensions following Russia's invasion of Crimea in 2014.

The recent ECB report, presented by the ECB President today, contains a wide range of indicators illustrating this.

As a follow-up to the discussions earlier this year, I presented an analysis of the long-term impact of a currency's international status on its exchange rate.

This analysis finds that there is little evidence of such a link.

In fact, exchange rates are largely driven by cyclical factors.

While a currency's international status depends mainly on its underlying fundamental strengths.

We can therefore pursue the substantial opportunities a greater international role for our currency presents without fearing that it will entail persistent upward pressure on the euro's exchange rate.

Of course, it requires deep capital markets, underscoring the importance of completing the Savings and Investments Union.

We must, therefore, double down on our efforts to advance key priorities that will help the euro fulfil its full potential on the world stage.

I also welcomed the Eurogroup's work programme for the year ahead, which was approved today.

It is important for the Eurogroup to keep a focus on the coordination of fiscal and economic policies in the euro area, as well as the various aspects impacting the euro area's competitiveness and productivity.

I also welcome the Eurogroup's statement on supporting the development of digital finance in the EU.

The digital euro project is at the core of our digital finance agenda.

I welcome recent progress made by the co-legislators and look forward to the trilogue negotiations beginning next week.

As Kyriakos already said, we also discussed the need to remain focused on ensuring that AI strengthens the resilience of the financial system.

We must act together with our international partners and supervisory authorities to preserve the benefits of this innovation, but at the same time, ensure that AI does not become a new source of vulnerability for Europe's financial system.

Finally, we held a timely discussion on the euro area's fiscal stance ahead of the preparation of Member States' national budgets for next year.

This year, we expect a mildly expansionary fiscal stance which will return to broadly neutral in 2027.

Here, we cannot afford to be complacent.

Sound public finances are the essential foundation to maintaining macroeconomic stability.

This is especially critical as we navigate a period of change and uncertainty.

So, while we must continue to invest to confront new challenges, many Member States will have to take steps to be in line with the EU's fiscal framework next year.

And the European Commission will continue to monitor fiscal developments closely.

A final point: the Eurogroup also adopted a statement on Austria's draft budgetary plan for 2027 on the basis of the Commission's Opinion that the plan is compliant with the Council's Recommendation.

Thank you.