The Eurogroup said on Monday that the "only lasting solution to the energy crisis is to continue reducing the dependence on fossil fuels."
The group consisting of finance ministers of euro area countries specified in a statement on the 2024 fiscal outlook that they will be moving to implement "more targeted measures" to "protect the most vulnerable households and viable firms" from the impact of high energy prices. Eliminating certain energy-supporting fiscal actions is also expected to help governments reduce their respective deficits, according to the Eurogroup.
"In light of economic prospects and in a context of high inflation and tighter financing conditions, we reiterate that broad-based fiscal stimulus to aggregate demand is not warranted" while "risks to growth appear more balanced than previously," the ministers emphasized.
