Strong euro on the positive side, ongoing global instability as a risk. Eurogroup meeting on Thursday, 9 October focused on macroeconomic predictions, path towards Capital Market Union, and stablecoins. According to recent analyses, the US tariffs have not had any sound effects on the euro area’s economy so far.
“The level of uncertainity regarding macroeconomic and budget situation remains high. Though the growth in the euro area was higher in the first half of this year and the prospects are somewhat uncertain, we appreciate stronger euro which helped the euro area’s economy.” These were the opening remarks by Paschal Donohoe, President of the Eurogroup, at the press conference held after the Eurogroup meeting.
Digital euro moving forward
Valdis Dombrovskis, Commissioner for Economy and Productivity, mentioned in his speech the prepared Capital Markets Union. “It remains our priority,” Mr Dombrovskis said without detailing further concrete steps. “We had a good discussion with ministers and gathered a lot of experience from national levels,” added Commissioner Dombrovskis.
We appreciate the Danish Presidency’s ambition to push the talks on digital euro so that a binding regulation could be adopted still by the end of this year. — Valdis Dombrovskis, Commissioner for Economy and Productivity at Eurogroup meeting
He reiterated that the euro area economy is in a slightly better shape than it had been expected in spring. “However, the outlook for 2026 has softened slightly compared to previous projections,” warned Mr Dombrovskis. He also mentioned that member states are expected to submit national budgetary pland to Commission until 15 October. Only on that base, the economic forecast for 2026 could be carried out in more deatil. That will be presented in the end of November.
Commissioner Dombrovskis also expressed cautious optimism regarding the introduction and use of the digital euro. “We appreciate the Danish Presidency’s ambition to push the talks so that a binding regulation could be adopted still by the end of this year,” Mr Dombrovskis added.
Euro-denominated stablecoins as a chance
In his speech, Pierre Gramegna, Managing Director of the European Stability Mechanism, focused on the effects of US tariffs and stablecoins
“The US tariffs have had so far smaller effects that we had expected, which is a very good news (…) However, the full effect of these tariffs is still to be seen,” said Mr Gramegna. He also mentioned that the euro area benefits from the current exchange rate between euro and US dollar. “The dollar’s weakness is the opportunity euro should grasp. We need to build on this momentum,” said Mr Gramegna.
According to Pierre Gramegna, stablecoins provide both opportunities and risks. “Europe must not be dependent on US dollar-denominated stablecoins which are currently prevailing (…) I welcome the development that several European banks have made concrete steps to launch a euro-denominated stablecoins,” closed Mr Gramegna his speech.
