Brussels: Europe and the Arabs
Eurogroup President, Paschal Donohue, sent a letter to Euro Summit Chairman, Charles Michel, informing about the current and future work of the Eurogroup. The message will inform the discussion that the leaders will hold at the Euro Summit on October 27, 2023. On the second day of the summit, which is scheduled to begin tomorrow, Thursday, October, and brings together the leaders of the European Union member states.
According to a European statement issued in Brussels on Wednesday, the message highlights the remarkable resilience of the eurozone economy in an increasingly difficult economic context. Overall resilience is supported by strong labor market conditions and the implementation of several good reforms. It points to the need to adjust public finances in a firm, gradual and realistic manner to enhance financial sustainability and rebuild financial safety margins, while continuing to implement structural reforms and protect and increase investment to achieve higher sustainable growth. In addition, it underscores the need for rapid agreement on fiscal rules as essential to the credibility and smooth functioning of the Economic and Monetary Union.
It provides a detailed report on the work undertaken by the Eurogroup in recent months on the measures needed to advance capital markets union and ensure that European capital markets are able to renew and boost private sector investment, unleash finance to address common challenges, and allow the EU to demonstrate Leadership in green and digital transformations.
He points to the political anchor provided by the Eurogroup for the digital euro project and two important milestones this year – the Commission proposal setting out the legal framework and key elements of a digital euro in June and the ECB Governing Council decision in October. To move to the preparatory phase, which will involve further analysis about the design and functionality.
It also highlights the resilience of the banking sector despite the turmoil witnessed in the global banking system this year and the necessity of continuing work to complete the banking union, including the conclusion of negotiations on the Commission’s legislative package on crisis management and the deposit insurance framework within the framework of this institutional session, as well as the completion From the reform of the European Stability Mechanism (ESM).