Eurozone fiscal policy for 2024 should not exacerbate inflationary pressures, Minister for Finance Makis Keravnos said during Thursday's Eurogroup meeting in Brussels, according to a press release circulated by the PIO on Friday. Keravnos attended the Eurogroup meeting on Thursday and the EU's Economic and Financial Affairs Council on Friday.

The Economic and Financial Affairs Council discussed the recent proposals of the European Commission on the financing of the EU budget among other issues, according to the press release. The Commission also presented its legislative proposals, which were presented at the end of June, as well as its legislative proposals on customs reform. These proposals were presented by the Commission in May, aiming at an ambitious and comprehensive reform of the EU Customs Union, the press release adds.

On Thursday, Keravnos attended the meeting of the Ministers of Finance of the euro area, where Ministers discussed the economic and fiscal situation in the euro area and adopted a joint communiqué. Ministers agreed on the need for fiscal restraint for 2024, through the withdrawal of support measures to mitigate the negative impact of rising energy prices, according to the press release.

In his intervention, the Finance Minister agreed that euro area fiscal policy for 2024 should not be subject to inflationary pressures and stressed the need to ensure fiscal sustainability.

He agreed with the need to align fiscal policy with monetary policy to contain inflation, and expressed concern about the impact of the continued rise in interest rates on the economy and inflation, referring to the need to analyse the effects on investment, the capital needs of small businesses and the creation of more jobs, so that the impact on the economy can be better understood.

In addition, Keravnos briefed his counterparts on the recent decision of the government to withdraw the generalized support measures brought about by the increase in energy prices and the continuation of only targeted support measures for vulnerable groups of the population until 1 September.

Finally, on Thursday Keravnos participated in the signing ceremony for the EU for Ukraine Fund (EU4U) to be established by the European Investment Bank (EIB).