Slovenian Finance Minister Andrej Šircelj attended an informal video conference of the Ministers of Economy and Finance (ECOFIN Council) on Tuesday. The central topic of the session was the economic recovery of the European Union, the Ministry announced.
The European Commission presented its economic forecast for winter 2021. The resurgence of the pandemic has delayed the recovery process. GDP growth projections show an increase of 3.7% in the EU economy in 2021 and 3.9% in 2022. The European Commission sees higher growth in Slovenia in 2021 than the EU average, specifically an increase of 4.7% of GDP and 5.2% growth in 2022, is an improvement compared to the autumn forecast which predicted growth of 3.8 percent in 2022.
To begin the recovery process, Member States have focused on establishing national recovery and sustainability plans based on European Commission guidelines. The Slovenian National Repair and Sustainability Plan is also in progress. The main objective of the Recovery and Renaissance Mechanism is to assist Member States in their recovery, so it is necessary to focus on the rapid adoption of national plans and the rapid and efficient allocation of funds. Administrative and bureaucratic burdens that may slow the onset of recovery should also be reduced.
The Ministers also confirmed the recommendation for dismissal to the European Commission for the implementation of the 2019 budget and the budget guidelines for 2022, which will be approved by a written procedure. They also exchanged views on the EU Global Recovery Initiative which deals with recovery financing in developing and low-income countries.
The Ministry recalls that on Monday, February 15, Minister Šircelj participated in the Eurogroup video conference. The Ministers exchanged views on macroeconomic developments and political prospects in the Eurozone based on the European Commission forecast for the winter of 2021.
“Uncertainties remain high. Therefore, it is important that fiscal policy remains supportive. The impact of the COVID-19 crisis will change and some sectors will be affected more than others. The recovery will be long, but policies aimed at supporting structural change and encouraging investment may contribute to this in the coming years. Furthermore, we must take into account the green and digital transition, “said Minister Šircelj.