Eurogroup Finance Ministers warn against premature withdrawal of financial support

Eurozone Finance Ministers agreed that respective Member States will ensure that until the health crisis is over and recovery is firmly underway, they will continue to protect economies through the deployment of the necessary level of fiscal support.

“Supporting economic activity and mitigating scarring effects through timely, temporary and targeted measures is key to longerterm fiscal sustainability. Premature withdrawal of fiscal support should be avoided”, the Ministers said in a statement.

The Eurogroup is committed to a supportive stance in the euro area in 2021 and in 2022, also taking into account the fiscal stimulus stemming from the Recovery & Resilience Facility. Ambitious reforms and productive investment, supported by the RRF, are key to increase growth potential in the medium-term. The Eurogroup noted the Commission’s preliminary indication that the general escape clause will continue to apply next year.

Finance Ministers also agreed that once the recovery is firmly under way, euro area Member States should address the increased public debt levels by implementing sustainable medium-term fiscal strategies, with an emphasis on improving the quality of public finances, raising investment levels and supporting the green and digital transitions. Member States should focus on reforms that will promote private investment and will increase the productive capacity of the euro area.