Eurogroup discusses sanction impact on fiscal future for eurozone

The Eurogroup will meet in Brussels today as the Russian invasion of Ukraine rages on. The ministers will discuss the effect that sanctions have had on the Euro, as well as the Banking Union. 

“The meeting will open up with an acknowledgement of the great suffering that the people of Ukraine are now confronting,” Eurogroup President Paschal Donohoe said. “This will form the backdrop for our evaluation of the performance of the economy of the eurozone, where we will review developments that have taken place in 2022.”

The Eurogroup is made of ministers of finance from eurozone countries. This group works to coordinate economic policies between eurozone  countries and also stimulate economic growth. Their priorities for the first half of 2022 focus on recovery from the pandemic, strengthening the banking union and facilitating the Euro’s international presence. 

However that was all before sanctions against Russia caused a massive spike in gas prices around the EU. Ministers are due to assess the impact of those sanctions and debate how it will affect fiscal policy for 2023. 

The 13th enhanced surveillance support of Greece will also be discussed at the meeting. In 2018, the European Commission activated the enhanced surveillance framework to monitor the economic situation in Greece following the conclusion of the EU’s assistance programme that same year.

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