President Donohoe to meet US Secretary of the Treasury, Janet Yellen in Brussels

12th July, 2021

President Donohoe chairs Eurogroup meeting to discuss the improving euro area economic situation

At today’s (Monday) Eurogroup meeting, chaired by President of the Eurogroup and Minister for Finance, Paschal Donohoe T.D., Euro Area Finance Ministers will discuss economic and financial policies with the US Secretary of the Treasury, Janet Yellen; euro area fiscal policy; and the digital euro.

The President of the Eurogroup and Minister for Finance, Paschal Donohoe stated:I am delighted to welcome the US Secretary of the Treasury, Janet Yellen, to our Eurogroup meeting.  The US and Europe have long been key pillars of global economic governance. Strong cooperation between us provides the best chance to develop strong, democratic solutions to global challenges’.

“Secretary Yellen’s attendance at the Eurogroup demonstrates the high level of economic policy cooperation that has supported economic activity and recovery across the globe, and which has protected so many jobs from the worst impacts of the crisis.  The discussion with Secretary Yellen will cover a broad range of issues including the challenges for the global economy; fiscal policy strategy; and cooperation to address climate change.”

Minister Donohoe also updated on the euro area economic situation by stating: I note the positive improvements in the Commission’s Summer interim forecast, which has raised this year’s euro area real GDP forecast by half a percent as compared to two months ago and now considers the outlook for the economy as “brighter than expected in Spring’.

“This improvement in the outlook reflects an improving health situation and easing of containment measures.  However, I and my colleagues remain fully aware of the need to exercise caution given the risks posed by variants.  Also, Governments are absolutely focussed on supportive policy measures to minimise the long-term impacts of the pandemic, particularly for the most vulnerable sectors and population groups in society.”

The broader Eurogroup agenda, chaired by Minister Donohoe, will also cover the longer-term strategic issue of the development of the digital euro. This follows on from EU Leaders’ invitation in March of this year to undertake exploratory work on the digital euro. The Eurogroup will decide on potential topics on which it may make policy contributions over the next months. Given the complexity of these issues, the Eurogroup will likely draw heavily on the expertise of the ECB and the Commission.