Eurogroup Meeting Focuses on Tackling High Inflation

The Eurogroup meeting was held in Brussels on the 11th, focusing on the economic situation in the Eurozone in the current global context, policy challenges and how to deal with the current high inflation.

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The European Commission on the same day to the participating eurozone finance ministers about the current economic situation. The European Commission said it would again lower its economic growth forecast for this year and raise inflation expectations, but said there are no signs of recession in the European economy. The European Commission will publish the latest summer economic outlook report on the 14th.

European Commission Executive Vice President Don Brovskis said that in view of the many uncertainties and risks currently faced, will be lowered this year and next two years economic growth forecast. He also warned that the continued high energy prices are gradually affecting other areas of the economy, making inflation become more entrenched and widespread.

European Commission member for economic affairs Gentiloni said at a press conference that the European economy is currently in a difficult situation. The crisis in Ukraine has hit economic confidence, pushed up inflation and triggered a high degree of uncertainty. He said the EU plans to take a series of measures to reduce the inflationary pressure brought by gas imports.

In terms of fiscal policy, the Eurogroup discussed the eurozone budget situation and the direction of fiscal policy in 2023. Eurogroup President Donohoe said he would work to maintain debt sustainability and long-term growth prospects and avoid increasing inflationary pressures.

The European Commission also called on member states, especially highly indebted countries, to move from broad-based stimulus to more prudent policies and to readily adjust policies to rapidly changing economic conditions.

In May, in an assessment of the impact of the situation in Ukraine on the EU economy, the European Commission lowered the EU's economic growth forecast for this year to 2.7% from the 4% forecast in February and for next year to 2.3% from 2.8%, and expects EU inflation to be 6.8% this year and to fall to 3.2% in 2023.