L-R: Yuriko Backes, Luxembourg's Minister of Finance; Christine Lagarde, ECB President;
Credit: MFIN
Luxembourg's Ministry of Finance, Yuriko Backes, participated in the meetings of the Eurogroup and the Economic and Financial Affairs Council (ECOFIN) in Brussels on Monday 13 and Tuesday 14 February 2023.
The Eurogroup discussions focused on the macroeconomic outlook in the eurozone in light of the economic forecasts published by the European Commission. The Winter Economic Forecast showed moderate growth, with the eurozone having started 2023 in a better situation than expected. The Commission revised downwards its projections of inflation rates for 2023 and 2024. During the discussions, particular attention was paid to labour and energy markets.
During the ECOFIN Council, the 27 ministers continued their discussions on the reform of the Stability and Growth Pact. Minister Backes pointed out: "Recent years have shown that crises can occur unexpectedly and that appropriate budgetary means are needed to counter them effectively. This is why our common budgetary framework will have to promote a proactive and prudent fiscal policy. The design of any new framework should be based on the principle of multilateralism, which has proved effective in the past."
The meeting allowed the ministers to take stock of the economic and financial consequences of Russia's aggression against Ukraine. The effectiveness of the existing sanctions regime and the tenth sanctions package under preparation were at the centre of these discussions.
Ministers also adopted an amending implementing Council decision on the update of the recovery and resilience plan submitted by Germany and the European Union (EU) mandate for the G20 Finance Ministers and Central Bank Governors meeting which will take place in India at the end of February.
During the ECOFIN breakfast, finance ministers held an informal exchange of views on the Green Deal Industrial Plan presented by the European Commission on 1 February and which aims to strengthen the competitiveness of Europe's net-zero emissions industry and support the rapid transition to climate neutrality.
A lunch organised by the Dutch Presidency of the Benelux Union was an opportunity for the three finance ministers to take stock of their common priorities in European matters.
Minister Backes also participated in the informal dinner for female finance ministers organised by her Swedish counterpart, Elisabeth Svantesson, who holds the Presidency of the Council of Ministers for Economic and Financial Affairs in the first half of 2023.
