(Finance) – In the first quarter of this year the euro area economy showed better than expected levels of growth: “a return that we welcome after a very difficult 2023”: this was stated by the European Commissioner for Economy, Paolo Gentiloni, in the press conference at the end of the Eurogroup, underlining that inflation remains on a downward trend and the labor market remains considerably solid, in 2023 the eurozone created over 2 million jobs. “At the same time, we continue to navigate treacherous waters, with two wars not far away and broader geopolitical tensions creating increased downside risks.” Gentiloni recalled that on Wednesday he will present the updated economic forecasts from the European Commission.
If the European Union fails, not even at the level of euro area governments to move forward on the Capital Market Union project “will it be possible” for some states to look for ways to proceed in this direction among themselves. “It is not a suggestion, it is what we expect”, specified the European Commissioner for Economy, Paolo Gentiloni, responding to a question on the issue in the press conference at the end of the Eurogroup. “I expect that if great progress cannot be made, some states will look for ways to move forward,” he said. The president of the Eurogroup, Paschal Donohoe, told him: “there are several governments that have expressed their willingness to move forward in some way. From my perspective – he clarified – our strong preference is to see progress made in a united way” .
Donohoe, and Pierre Gramegna, director of the ESM (the Eurozone’s “state-saving” fund), both underlined “the need to complete the ratification of the reform of the ESM treaty”. Donohoe reported that this need had been highlighted “once again” by Eurozone ministers, while Gramegna recalled that “19 out of 20 countries have already ratified” the ESM reform, without mentioning Italy, which is the last country not to have done so yet. Gramegna also said that ratification is necessary to complete the Banking Union, because it will provide the financial “safety net” that is foreseen by the reform for the Single Resolution Fund in case of banking crises, and that the Banking Union in turn is complementary to the future Capital Markets Union.
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