The European Council published a post-meeting statement by the President of the Eurogroup confirming colleagues’ support for him to continue in the role and setting priorities for the next term, including budgetary coordination, the digital euro and the savings and investment union. Ministers underlined that fiscal restraint remains appropriate outside defence spending and indicated they expect a broadly neutral euro area budget stance in 2026. On fiscal coordination ahead of 2026 budget preparations, the Eurogroup emphasised budget sustainability, a careful and prudent application of the national escape clause alongside security commitments, and implementation of medium-term plans, with further discussion on reprioritisation to accommodate defence spending over the medium term. It also held a forward-looking discussion on the international role of the euro, noting its broadly stable position as the world’s second global currency in 2024 and agreeing to monitor recent developments amid market diversification, alongside work on deep and liquid capital markets, resilient payment systems and credible institutions. The statement noted continued steps toward Bulgaria’s euro adoption, including confirmation of the lev-to-euro conversion rate, to be fixed definitively by the Economic and Financial Affairs Council on 8 July 2025; ministers also discussed digital euro design issues, reporting growing political convergence and a focus on a “balanced and workable approach” to holding limits. Next steps include refining Eurogroup political guidance on digital euro holding limits at the September meeting, taking stock in autumn of EU capital market performance and national measures supporting the capital markets union agenda, and returning in December to the regular review of draft budget plans and the euro area fiscal stance.
European Council 2025-07-07
European Council reports Eurogroup backs its president to continue, expects a broadly neutral euro area budget stance in 2026 and advances digital euro holding limit guidance
The European Council's statement confirmed support for the Eurogroup President's continuation and outlined priorities like budgetary coordination, the digital euro, and the savings and investment union. Fiscal restraint is advised outside defence spending, with a neutral euro area budget stance expected in 2026. Discussions included the international role of the euro, Bulgaria's euro adoption, and digital euro design, with further guidance on holding limits anticipated in September.