Thank you. Good evening, everyone.
Today, we discussed the economic outlook.
Since our last meeting, the international context has become more challenging due to dramatic shifts in the geopolitical landscape.
Russias brutal invasion of Ukraine creates uncertainty and poses a serious challenge to the economy and Europes security.
We can no longer rely on long-standing strategic partners for our security.
This uncertainty is already weighing heavily on economic activity, particularly investments.
Despite this challenge, the EU economy shows resilience, with improving economic sentiment and a well-functioning labor market.
Quick and unified policy action is crucial in times of elevated geopolitical risks.
We need to take more responsibility for our security and defense while improving our competitiveness and economic fundamentals.
Our security and prosperity are interdependent and mutually reinforcing.
The proposed ReArm Europe Plan can mobilize €800 billion, positively impacting growth and jobs.
Our policies will have a crucial impact on the EUs growth path and resilience in the coming years.
Fiscal policy remains an important lever.
Today, I updated ministers on the implementation of the new economic governance framework.
We are making good progress.
We have now endorsed 22 medium-term plans of member states.
Since our last meeting, Bulgaria 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 soon.
As discussed, the evolving geopolitical situation requires a rapid and sharp increase in defense 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.
We will ensure that the fiscal framework continues to operate predictably and transparently.
Member states will be able to implement their just-adopted medium-term plans as foreseen.
At the same time, the flexibility will provide significant leeway for additional defense expenditure.
We will discuss this issue over the ECOFIN dinner this evening and also in the ECOFIN Council tomorrow.
The Commission will formalize its proposals shortly.
Meanwhile, we must maintain focus on the implementation of the fiscal, reform, and investment measures in the member states plans.
I also provided a debrief from last months 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 international partners through multilateral fora, including the G20 and G7.
We discussed financial assistance to help Ukraine continue its war of survival against Russian aggression.
Since the beginning of Russias invasion, the EU has provided €135 billion in aid to Ukraine, including financial, military, and humanitarian assistance.
This amount includes €73.3 billion in grants.
The EU has also provided approximately €41.3 billion in loans through its Macro-Financial Assistance and Ukraine Facility instruments.
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 clearly makes the EU the largest donor to Ukraine compared to 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 for 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 Europes 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 strong political will and commitment also in the Council.
Thank you.