The European Council published remarks by the Eurogroup President after the ministers’ meeting, confirming colleagues’ support for him to continue in office and setting priorities for the next term across fiscal coordination, the digital euro and the savings and investment union. The readout signalled that, except for defence spending, fiscal restraint remains appropriate and that the euro area is expected to have a broadly neutral budget stance in 2026. Budget policy coordination ahead of 2026 national budgets reaffirmed a focus on sustainability, including a careful and prudent application of the national escape clause while delivering security-related commitments and ensuring defence spending is efficient and productive. Ministers committed to implementing their medium-term plans and agreed to monitor developments affecting the international role of the euro, which was described as broadly stable in 2024 amid a trend toward market diversification. The Eurogroup also confirmed the lev-to-euro conversion rate for Bulgaria’s euro adoption, with definitive fixation due at the Ecofin Council on 8 July 2025. Next steps include the Eurogroup’s regular December review of draft budget plans and the euro area fiscal stance, alongside continued discussion on reprioritising budgets to accommodate defence spending over the medium term. In the Eurogroup inclusive format, ministers reported growing political convergence on digital euro holding limits, with further work in the coming weeks to refine political guidance targeted for the September meeting and to support progress under the Danish presidency. Work on the Capital Markets Union agenda will continue with an autumn stocktake of EU capital market performance and national measures, following a discussion with European Investment Bank President Calviño on EIB initiatives supporting the savings and investment union.
European Council 2025-07-07
European Council publishes Eurogroup President priorities for new term including 2026 fiscal coordination and digital euro holding limits
The European Council published remarks by the Eurogroup President, confirming support for his continued tenure and setting priorities for fiscal coordination, the digital euro, and the savings and investment union. The Eurogroup reaffirmed fiscal restraint, except for defence spending, and confirmed the lev-to-euro conversion rate for Bulgaria's euro adoption. Ministers reported convergence on digital euro holding limits and will continue work on the Capital Markets Union agenda with an autumn stocktake of EU capital market performance.