Minister of Finance G. Skaistė: “Aiming For Fiscal Sustainability in the EU, We Should Not Forget the Economic Growth”


2022 01 12


Today, Mr Paschal Donohoe, President of the Eurogroup (EG) and Minister of Finance of Ireland, who is currently on a visit to Vilnius, first met with Minister of Finance of the Republic of Lithuania Gintarė Skaistė. During the bilateral meeting, the ministers discussed the economic outlook for the euro area (EA), the review of the EU fiscal rules and further fiscal stance. The process of completing the Banking Union and other pending issues of the Eurogroup Agenda this year were also discussed during the meeting.

According to Ms G. Skaistė, the EG format is crucial for ensuring the effective fiscal policy coordination between the euro area countries, which is evident in assessing the successful experience of the EU coordinated financial and economic response to COVID-19, which has helped the Community withstand the pandemic shock and demonstrate the rapid pace of recovery. In the near future, the EG Agenda will focus not only on further coordination of actions, but also on the debate on the revision of the EU fiscal rules.

“In the revision of the EU fiscal rules, it is vital to ensure the sustainability of public finance in the long term while strengthening the incentives for sustainable economic growth. Seeking the EU global competitiveness, we are ready to consider a limited additional flexibility for productive investments contributing to the ambitious goals of the digital and green transformation“, stated Minister G. Skaistė.

According to the Minister, additional flexibility for productive investments should be combined with safeguards to ensure the quality of investments. The experience in implementation of the Recovery and Resilience Facility could also contribute to this.

During the meeting with Mr P. Donohoe the Minister also discussed the issue of completion of the Banking Union. Lithuania supports the process aimed at full implementation of the Banking Union and its third pillar − the creation of the European Deposit Insurance Scheme (EDIS). It is important that the completion of the Banking Union strikes the right balance between the development of cross-border banking at EU level and financial stability both in individual Member States and at EU level.

The President of the Eurogroup, during his visit to Vilnius, after a bilateral meeting with Minister of Finance G. Skaiste will also meet with President of the Republic Gitanas Nausėda, Prime Minister Ingrida Šimonytė and the Lithuanian Fintech community.