Eurogroup Announces Fiscal Policy to Turn Neutral by 2025

The Eurogroup, comprising the Eurozone's finance ministers, has indicated a shift towards a broadly neutral fiscal policy by 2025, with an exception for increased defense spending. This move underscores a continued emphasis on fiscal restraint, extending into 2026.

Public Debt and Deficit Projections

Following stabilization at approximately 90% of GDP in 2024, public debt is anticipated to experience a slight uptick in the subsequent years. Concurrently, the public deficit is expected to remain marginally above the 3% GDP threshold, signaling cautious economic management.

Economic Resilience and Growth Forecast

The Eurogroup remains optimistic about the Eurozone's economic resilience, projecting moderate growth for the current year with an acceleration anticipated by 2026. This outlook reflects the ministers' confidence in the region's economic fundamentals.