Friday, 9 May 2025
No Result
View All Result
eudebates.tv
  • EU Policies
  • World
  • Special Debates
  • Events
  • Vote & Polls
eudebates.tv
No Result
View All Result

Eurogroup: Inflation pressure is temporary but economic recovery on hold

EUdebates Team by EUdebates Team
22/05/2021
in Economy
Reading Time: 5 mins read
0
Christine Lagarde, President of the European Central Bank with Eurogroup President Paschal Donohoe
130
SHARES
1.3k
VIEWS
Share on FacebookShare on Twitter
ADVERTISEMENT

Join EU debates

How the pandemic caused global economic crisis and changed the world

No winners but fewer losers in global economy from COVID than expected

Strengthening the EU currency and the international role of the euro

InvestEU programme adopted for strategic and innovative investments

ECB’s Lagarde believes inflation pressure in Eurozone is temporary but Eurogroup finds that economic recovery is on hold. Further work will support economic recovery, improve the banking system and make progress on digital currency and green finance issues.

At the Eurogroup meeting, chaired by President of the Eurogroup and Irish Minister for Finance, Paschal Donohoe T.D., euro area Finance Ministers agreed on their work programme* for the second half of the year. This is Minister Donohoe’s second work programme since he was elected President of the Eurogroup in July 2020, and builds on the work he has done over the past ten months.

Eurogroup prepares policies for economic recovery

The Eurogroup has been at the forefront of the joint response to the unprecedented economic shock of the COVID-19 pandemic and it will continue to play a key role in the euro area in identifying, coordinating and implementing the policies that will deliver a robust, inclusive, and sustainable recovery. The Eurogroup’s work programme until December 2021 reflects this and a number of other priority policy areas, including in banking, digital currencies and green finance. Ireland is at the forefront of decisions that shape the European economy, while Minister Donohoe holds the Eurogroup Presidency and chairs the Eurogroup meetings.

President Donohoe & Eurogroup agree work programme for remainder of 2021

“We will also strive to improve the European banking system, by building on our agreement, last November, on the reform of the European Stability Mechanism and the early introduction of a common backstop to the Single Resolution Fund, we will continue to pursue the goals of deepening the Economic and Monetary Union and completing the Banking Union.

Paschal Donohoe, Eurogroup President and Irish Minister for Finance

“We will also continue to make progress on how to best pursue the opportunities brought by the green and digital transition, including the potential development of a digital euro. We will remain flexible to address emerging or evolving issues, particularly in relation to the pandemic.”

Paschal Donohoe, Eurogroup President and Irish Minister for Finance

The dividend of these unprecedented policy measures is beginning to be seen, with the European Commission’s Spring 2021 Forecast (published 12th May) demonstrating clear signs of recovery in the European economy. There has been significant upward revision to growth prospects, with +4.2% growth now expected for the EU in 2021 (instead of the +3.8% predicted in the Winter Forecast) and a return to pre-pandemic levels of output earlier than envisaged next year. Ireland’s growth is forecast to be slightly above average, at +4.6% in 2021.

Eurogroup Head Donohoe: Prospects for Eurozone are improving

The improved outlook reflects global prospects, the effective European economic response and signs of economic recovery. Also it reflects the accelerated momentum of the vaccine roll-out which has been crucial in helping economic confidence.

The EU, through coordinated action, has been at the forefront of the campaign to deliver vaccines for all, with Ireland in line with the EU norm of one third of the adult population now vaccinated.

We are in a far better place now than in recent months.

The economic recovery is gaining momentum as economies re-open and as Recovery and Resilience Facility (RRF) funds come on stream. The phased re-opening of Ireland’s economy is reflected in the falling Pandemic Unemployment Payment (PUP) figures indications. People are returning to work in large numbers. This week there were 13,498 fewer people in receipt of the PUP compared to last week and a further almost 26,000 closing their claims in the past week.

Christine Lagarde finds inflation pressure as temporary

It’s far too early and it’s actually unnecessary to debate longer-term issues. Our focus in June is going to be on favourable financing conditions for the economy at large and to all sectors.

Christine Lagarde, ECB President

Lagarde says too early to discuss life after emergency support

We are committed to preserving favourable financing conditions using the PEPP envelope, and to do so until at least March 2022.

Christine Lagarde, ECB President

The RRF will also drive transformative changes in the structure of our economies, making them greener and more digital. Ireland’s National Recovery and Resilience Plan will be submitted to the European Commission next week.

President of the Eurogroup and Minister for Finance Paschal Donohoe welcomed the agreement on the work programme today, saying:

‘Strengthening the euro area economy is essential for the recovery and the return to a sustainable growth path. Through our high-level discussions, it is my priority to ensure that the Eurogroup remains a forum for promoting common understanding on challenges and defining appropriate policies for the euro area. As such, we will continue to regularly monitor macroeconomic, fiscal and corporate sector developments and hold discussions on structural reforms. Europe’s recovery will be Ireland’s recovery’.

Eurogroup eudebates economic recovery

Share this debate with your friends!
Follow #eudebates on Google News and on Facebook
Tags: Banking SupervisionBanking UnionBanksChristine LagardeECBEconomic GovernanceEconomic Governance EuropeEconomic GrowtheconomistEconomyEurogroupEuropean Central BankEuropean Investment BankeurozoneFinance and bankingGlobal BankingRecovery and Resilience Facility (RRF)Restoring Economic Growth
Share52Tweet33

Related EU debates

Economy EU-Budget
Economy

How the pandemic caused global economic crisis and changed the world

13/05/2021
Containers Imports Exports Trade harbor
Economy

No winners but fewer losers in global economy from COVID than expected

01/04/2021
500 euros money printing
Economy

Strengthening the EU currency and the international role of the euro

25/03/2021
Money Invest Green
Economy

InvestEU programme adopted for strategic and innovative investments

15/03/2021
sustainability Green Climate policy
Economy

ECB Green monetary policy and Climate change

14/03/2021
ECB President Christine Lagarde
Economy

US Biden plan stimulus for Recovery will impact EURO area

12/03/2021

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

SOTEU 2022 - State of the Union speech

Watch State of the Union live: Ursula von der Leyen gives 2022 address #SOTEU

14/09/2022
Volunteers preparing food for Ukrainian refugees arriving at Berlin Central Station

EU steps up solidarity with refugees fleeing Ukraine

08/03/2022
pump jack oil diesel

REPowerEU to get rid of the dependencies of Russian fossil fuel

08/03/2022
Ursula von der Leyen President of the European Commission

EU sanctions against Russia following the invasion of Ukraine

26/02/2022
Finnish PM Sanna Marin

Finland: NATO membership ‘will change’ after Russian invasion

24/02/2022
NATO - EU joint Press Conference

EU responds to Russia’s invasion of Ukraine with massive sanctions

24/02/2022
  • Social Media Facebook twitter

    DeleteFacebook? What is the best Facebook european alternative?

    268 shares
    Share 107 Tweet 67
  • Travelling in Europe with COVID19 country colour travel code zones

    238 shares
    Share 95 Tweet 60
  • Why don’t Mediterranean boat migrants take the plane? Why don’t refugees fly?

    222 shares
    Share 89 Tweet 56
  • EU nasty and vindictive? Nigel Farage criticizes EU vaccines strategy

    202 shares
    Share 81 Tweet 51
  • Burkini Debate: To Ban or Not to Ban the Burkini, Burka and Niqab in EUROPE?

    193 shares
    Share 77 Tweet 48

Join eudebates newsletter!

Enter your email to receive our newsletter.

Don't worry, we don't spam
eudebates_logo

Follow us on social media:

Recent News

  • Watch State of the Union live: Ursula von der Leyen gives 2022 address #SOTEU
  • EU steps up solidarity with refugees fleeing Ukraine
  • REPowerEU to get rid of the dependencies of Russian fossil fuel
  • EU sanctions against Russia following the invasion of Ukraine
  • Finland: NATO membership ‘will change’ after Russian invasion

Newsletter

Join eudebates newsletter!

Enter your email to receive our newsletter.

Don't worry, we don't spam
SOTEU 2022 - State of the Union speech

Watch State of the Union live: Ursula von der Leyen gives 2022 address #SOTEU

14/09/2022
Volunteers preparing food for Ukrainian refugees arriving at Berlin Central Station

EU steps up solidarity with refugees fleeing Ukraine

08/03/2022
pump jack oil diesel

REPowerEU to get rid of the dependencies of Russian fossil fuel

08/03/2022
  • Home
  • EU Policies
  • Special Debates
  • Events
  • Vote & Polls
  • Video

© 2022 eudebates - EU debates, dialogue, communication for a better Europe - Privacy Policy.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • EU Policies
  • World
  • Special Debates
  • Events
  • Vote & Polls

© 2022 eudebates - EU debates, dialogue, communication for a better Europe - Privacy Policy.

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. Visit our Privacy and Cookie Policy.