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Remarks by Commissioner Dombrovskis at the Eurogroup press conference

European Commission

Speech
Mar 9, 2025
Brussels

Thank you. Good evening, everyone.

We started today with an exchange on the economic outlook.

Since our last meeting, the international context has become even more challenging, as we are witnessing dramatic shifts in the geopolitical landscape.

Russia's brutal full-scale invasion of Ukraine continues to cause uncertainty and pose a serious challenge to the economy and to Europe's security.

On top of this, it now appears as though we can no longer rely on long-standing strategic partners, including for our security.

This high uncertainty is already having a significant drag on economic activity, in particular investment.

In spite of this challenging context, recent data releases confirm that the EU economy is showing considerable resilience, with economic sentiment improving and the labour market holding up well.

In a context of elevated geopolitical risks, quick and unified policy action is key.

We need to take more responsibility for our security and defence, while improving our competitiveness and economic fundamentals.

Our security and our prosperity are interdependent. And, in fact, the two objectives are mutually reenforcing.

The proposed ReArm Europe Plan has the potential to mobilise €800 billion, providing a significant fiscal impulse that may have a positive impact on the growth and jobs outlook.

Our collective policies will have a crucial impact on the EU's growth path and resilience in the years ahead.

Fiscal policy, which was the second item on today's agenda, continues to be an important lever.

Today, I provided ministers with an updated state-of-play on the implementation of the new economic governance framework.

Overall, we are making good progress.

We have now endorsed 22 medium-term fiscal-structural plans of Member States.

Since our last meeting, Bulgaria has submitted their plan.

The Commission will present its assessment in due course.

We expect the remaining four plans - Belgium, Austria, Lithuania and Germany - to be submitted in the coming weeks and months.

As just discussed, the geopolitical landscape has evolved very significantly in recent weeks, requiring a fast and sharp increase in defence spending in Europe.

That is why the Commission is proposing the activation of the National Escape Clause.

The fiscal leeway will be conditioned and controlled so that it does not endanger fiscal sustainability over the medium term.

In fact, we will ensure that the fiscal framework continues to operate in a predictable and transparent manner.

Member States will be able to implement their just-adopted medium-term plans as foreseen.

But, at the same time, the flexibility will provide significant leeway for additional defence expenditure.

We will discuss this issue over the ECOFIN dinner this evening and also in the ECOFIN Council tomorrow.

The Commission will formalise its proposals shortly.

At the same time, we must still maintain focus on the implementation of the fiscal, reform and investment measures contained in Member States' plans.

I also provided the meeting with a debrief from last month's G7 meeting of Finance Ministers and Central Bank Governors.

At this challenging time, the EU remains committed to the rules-based international order and engaging with its international partners through multilateral fora, including the G20 and G7.

We discussed the provision of financial assistance to help Ukraine continue its war of survival in the face of Russian aggression.

Since the beginning of Russia's full-scale Russian invasion, the EU has provided €135 billion in assistance to Ukraine, covering financial, military, and humanitarian assistance.

This figure includes €73.3 billion in the form of grants.

The EU has also provided approximately €41.3 billion in loans through its Macro-Financial Assistance and Ukraine Facility instruments.

However, these loans are offered on exceptionally concessional terms, with maturities of up to 45 years, extended grace periods of 10 years, and almost no interest payments.

This makes, very clearly, the EU the largest donor to Ukraine when compared with any other international partners.

On trade, I made clear that growing trade tensions will have a profoundly negative impact on the global economy.

I expressed our regret over the announcements of the United States of potential tariffs on the EU.

The EU is ready to react in a firm and proportionate manner, if necessary.

We also discussed the preparations of the March Euro Area Summit where the focus will be on deepening and developing our capital markets.

As you can see from the Competitiveness Compass, access to finance is key to Europe's competitiveness agenda.

The EU needs to speed up its progress towards deep EU capital markets development, and the renewed political impetus should give us the strength to advance decisively.

The Commission will come forward with its Communication on Savings and Investment Union next week, and we hope it will be welcomed with a strong political will and commitment also in the Council.

Thank you.