Press release following the meeting between Clyde Caruana and Paschal Donohoe

Clyde Caruana, Minister for Finance and Employment of Malta, and Paschal Donohoe, President of the Eurogroup and Minister for Finance of Ireland, met in Valletta, Malta, on 23 August 2022.

Their discussion focused on the evolving geopolitical and economic situation and its impact on Malta, Ireland, and the Euro Area as a whole. Against the backdrop of growing challenges such as rise of inflation and revisions in global growth prospects, both Ministers emphasised the benefit of close coordination of national economic and fiscal policies. Economic policy coordination will continue to be a key theme of Eurogroup’s work programme until the end of the year.

Ministers Caruana and Donohoe also discussed other Eurogroup priorities for the second half of the year, including the future of European fiscal rules, the deepening of the Economic and Monetary Union, and the digital Euro project. They also touched on the ongoing process for appointing a new Managing Director for the European Stability Mechanism.

Following the meeting, Minister Donohoe said:

It gives me particular pleasure to visit my Maltese colleague and friend, Clyde Caruana, here in Valletta. Today, we discussed the policy priorities for the Eurogroup until the end of the year, as we face a particularly uncertain outlook. While Malta’s economic performance is among the best in Europe there are a number of challenges ahead. It is more important than ever that we maintain and strengthen the close cooperation we established during the pandemic, to ensure that our actions at national level complement each other and that the Euro Area economy continues to grow.

Paschal Donohoe, President of the Eurogroup and Minister for Finance of Ireland

Minister Caruana said:

It is a great honour to welcome my friend, Minister for Finance of Ireland and President of the Eurogroup, Paschal Donohoe, here in Malta. Navigating these difficult times requires strong and flexible policies that are sustainable and offer support to vulnerable sectors of society. This must happen within the context of a fiscally responsible framework which does not jeopardise tomorrow’s well-being for todays. This is an inviolable principle. Europe’s competitive margin will be tested this winter due to spiralling energy costs, continuing supply chain issues and inflation. Our role as European Governments is to minimise the negative impacts on businesses, protect jobs and show resilience during this challenging period.

Clyde Caruana, Minister for Finance and Employment of Malta

Compliments of the European Council, the Council of the European Union.