Eurozone to tighten fiscal policy in 2023

Eurozone finance ministers agreed to tighten fiscal policy next year, emphasizing that “the fundamentals of the eurozone economy are strong,” but stressed that governments must be ready to quickly return to propping up the economy with public finances depending on the challenges posed by the Russian invasion of Ukraine. "We support the Commission's view that moving from an overall supportive fiscal stance in the euro area to a generally neutral fiscal stance next year appears appropriate with a readiness to respond to the evolving economic situation," they said.

"Nevertheless, the uncertainty has increased significantly, the economic impact of Russia's war against Ukraine has not yet been determined and it adds to the risks arising from ongoing supply chain problems, high energy prices and inflation continuing to rise for longer than previously expected," the ministers said.