WEBVTT - Eurogroup President Talks EU Finance, Economy

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<v Speaker 1>Bloomberg Audio Studios, podcasts, radio.

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<v Speaker 2>News, political risk one down in the UK, One to

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<v Speaker 2>go Sunday in France. But there's plenty of economic impact

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<v Speaker 2>that's currently occurring in Europe as well amid what has

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<v Speaker 2>been a very political narrative. We want to dovetail both together.

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<v Speaker 2>We can do that over an Excellent Provinces the Economic Conference.

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<v Speaker 2>Pascal Donahoe is a Eurogroup president. He's sitting down with

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<v Speaker 2>I want to know Ni karenlyn Knan take it away.

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<v Speaker 1>There's not a lot of political figures here in Excellent

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<v Speaker 1>Province this year, but we do have Pascal Donahoe, the

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<v Speaker 1>Eurogroup President, who's joining Mina from X.

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<v Speaker 3>Very nice to be with you, Good afternoon, Thanks for

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<v Speaker 3>having me on your program.

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<v Speaker 1>First, let's actually discuss these comments from German Lindner, the

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<v Speaker 1>German finance minister, who were saying that may actually be

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<v Speaker 1>illegal for the ECB to inter if there's political turmoil

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<v Speaker 1>in France.

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<v Speaker 3>What's your reaction to this. Well, the ECB always act

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<v Speaker 3>inside their legal mandates, they have in the past, they

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<v Speaker 3>will in the future, and the ECB monitor as we

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<v Speaker 3>do what is happening in financial markets. But the financial

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<v Speaker 3>markets at the moment are clearly stable. The French economy

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<v Speaker 3>from their death and borrowing point of view, is still

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<v Speaker 3>stable as well, and I know the ECB will both

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<v Speaker 3>monitor this situation and always be inside their mandates, as

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<v Speaker 3>they have clearly demonstrated in recent years.

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<v Speaker 1>So do you disagree with these germents where they're out

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<v Speaker 1>of place?

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<v Speaker 3>Oh, I can understand why Minister Lindner made those points.

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<v Speaker 3>He is, of course monitoring what is happening within France,

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<v Speaker 3>He's monitoring the debate that's underway from a public spending

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<v Speaker 3>point of view. But as President of the Eurogroup, I'm

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<v Speaker 3>aware of the need to take a perspective of what

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<v Speaker 3>is happening in France, but also to recognize that our

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<v Speaker 3>institutions have very clear mandates that they live within, and

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<v Speaker 3>the ECB, whether it be in regard to France or

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<v Speaker 3>any other element of the euro Area, are absolutely clear

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<v Speaker 3>about what their mandate is and always and have always

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<v Speaker 3>operated within us and I'm confident will continue to do so.

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<v Speaker 1>In the future. So do you think Franci's critical difficulties

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<v Speaker 1>will actually create any issues with ease.

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<v Speaker 3>Well, I'm very much aware that there's an election that's

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<v Speaker 3>just about to conclude in France. So I don't want

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<v Speaker 3>to pre judge what will happen here in France, particularly

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<v Speaker 3>as the people go to make their final decision here

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<v Speaker 3>on Sunday, but do allow me to make a general point,

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<v Speaker 3>and the general point is is that we all have

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<v Speaker 3>a responsibility to manage our public finances carefully and safely.

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<v Speaker 3>That has happened here in France in the past, and

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<v Speaker 3>the maintenance of that approach is ultimately what allows our

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<v Speaker 3>economies to grow again and what ultimately will also allow

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<v Speaker 3>incomes and living standards to increase at a time in

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<v Speaker 3>which we're still dealing with the effect of soaring inflation.

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<v Speaker 1>I would see you've been president of the Eurogroup for

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<v Speaker 1>many years. You are a countrapart of Brunulu Meier, the

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<v Speaker 1>French finance minister who's been the French finance minister for

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<v Speaker 1>seven years since Magon's first election, creating a lot of

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<v Speaker 1>stability obviously in terms of the relationship with EU partners.

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<v Speaker 1>How do you think that's going to change going forward?

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<v Speaker 3>Well, I have to say the Minister Lemaire has been

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<v Speaker 3>an exceptional colleague. He has led the French economy through

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<v Speaker 3>so many great difficulties. But I also see him as

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<v Speaker 3>a leader of Europe, and the difference that he has

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<v Speaker 3>made at really important moments within the Eurogroup has been immense,

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<v Speaker 3>and I've really valued my friendship with them and wish

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<v Speaker 3>him the best in the future.

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<v Speaker 1>And we're facing a least to us moment. Dead Craze

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<v Speaker 1>is potentially influence. Like Brin Lumire has been warning.

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<v Speaker 3>Well again, just allow me to make the general point

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<v Speaker 3>that we have learned that when domestic decisions are made,

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<v Speaker 3>financial markets can respond back quickly. And the general clear

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<v Speaker 3>learning that we have in recent years is about the

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<v Speaker 3>importance of maintaining market comfort and the importance of maintaining

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<v Speaker 3>confidence in your future spending at taxation plans. And all

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<v Speaker 3>governments are aware of that, whether that be the Irish

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<v Speaker 3>government that I'm a member of, are I'm sure any

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<v Speaker 3>other government that will be electant.

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<v Speaker 1>Obviously there is an outright majority of the national Really

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<v Speaker 1>in France, there is Jordan Badilla, who might become prime

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<v Speaker 1>minister next week. Do you feel some clashes with the

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<v Speaker 1>EU on fiscal rules as soon as this full.

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<v Speaker 3>Well, I think we should just let the election conclude

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<v Speaker 3>and allow the French Parliament to form the next government.

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<v Speaker 3>That's very much a matter for them, and I'm not

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<v Speaker 3>going to comment at this point on what it is

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<v Speaker 3>still obviously a domestic political choice. But again I'll make

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<v Speaker 3>the very broad points that cooperation between the Commission and

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<v Speaker 3>member states is a really important ingredient in continuing to

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<v Speaker 3>maintain a stability of the euro Area and all the

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<v Speaker 3>members of the euro Area, and France has been a

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<v Speaker 3>really important partner in that approach over the entire history

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<v Speaker 3>of the Euro I look forward to working with the

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<v Speaker 3>next French government. I look forward to working closely with

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<v Speaker 3>future finance ministers of France and doing all I can

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<v Speaker 3>to make the case for this approach to our public

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<v Speaker 3>finances and the value of the stability of the Euro

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<v Speaker 3>And I look forward to a good working and personal

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<v Speaker 3>relationship with whoever that minister will be.

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<v Speaker 1>But for example, Johann Badila has said E wants to

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<v Speaker 1>get contributions, French contributions to the EU budget by three

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<v Speaker 1>billion euros in order to find on some domestic proposals.

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<v Speaker 1>Is that even possible?

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<v Speaker 3>But these are the kind of comments that all kinds

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<v Speaker 3>of different governments make it before negotiations begin on the

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<v Speaker 3>next EU budgets. And I'm certain that you will hear

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<v Speaker 3>many other governments make points regarding them wanting to reduce

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<v Speaker 3>their contribution to the EU budgets, are looking for more

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<v Speaker 3>from the EU budgets. So again, let's just allow a

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<v Speaker 3>new French government to be formed, and myself on all

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<v Speaker 3>colleagues within the European Union look forward to doing our

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<v Speaker 3>best to having a warm and cooperative relationship with them.

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<v Speaker 3>But that's let the election conclude.

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<v Speaker 1>It seems like the relationship with Georgia Miloney, for example,

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<v Speaker 1>in Italy has improved. Do you think Malopment can be

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<v Speaker 1>compared to Georgia Miloney or is she much more on TEU.

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<v Speaker 3>Well, I mean, I think the experience of Prime Minister

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<v Speaker 3>Maloney in many ways is instructive for the discussion that

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<v Speaker 3>we will be having here in the future. Prime Minister

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<v Speaker 3>Malone has came into office, I made some very very

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<v Speaker 3>important and I believe right decisions on behalf of Italy

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<v Speaker 3>and behalf of Europe. And we have a very constructive

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<v Speaker 3>economic relationship with Minister gian Carlo Georgetti, her finance minister.

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<v Speaker 3>So that is another reason why I am reminded of

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<v Speaker 3>the value of letting the election come to an end

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<v Speaker 3>and when the government disappointed, hearing from them and doing

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<v Speaker 3>all we can to have a good cooperative relationship.

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<v Speaker 1>One good question on the UK, because obviously we had

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<v Speaker 1>these spell of victory, we've played the Labor Party with Kirstarmer.

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<v Speaker 1>Do you think this also has links to what we're

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<v Speaker 1>seeing in France, basically the Labor of victory as a

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<v Speaker 1>signal of anger after eight years of consequences of Brexit.

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<v Speaker 3>So I think that is definitely an interpretation of us

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<v Speaker 3>that the promises that were made with regards to breakfast,

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<v Speaker 3>many of them in the eyes I think of British

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<v Speaker 3>people have not happened in the way they would have expected.

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<v Speaker 3>But I'd actually interpreted in a more positive and optimistic way,

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<v Speaker 3>which is that we are seeing the British government, the

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<v Speaker 3>British people make the decision to elect a stable and

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<v Speaker 3>centrist government with the majority of the Labor government will

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<v Speaker 3>have with the kind of people that are leadiness. It

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<v Speaker 3>appears to me the British people has said we want stability,

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<v Speaker 3>we want competence, we want a government that can lead

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<v Speaker 3>the UK for the next five years. And I think

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<v Speaker 3>that's a very positive signal. While of course, on a

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<v Speaker 3>personal level, I wish all the members of the outgoing

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<v Speaker 3>government the best for their futures.

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<v Speaker 1>Finally, one really quick question on Ireland. The Ministry of

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<v Speaker 1>Finance actually just moved the data of your budget to

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<v Speaker 1>October first, as that means we are likely to see

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<v Speaker 1>elections in Ireland.

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<v Speaker 3>Please here, I'm afraid to disappoint you and Telly. The

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<v Speaker 3>answer to that question is low. I expect the next

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<v Speaker 3>general election in Ireland will be in March of next year,

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<v Speaker 3>at the end of our mandays, at the end of

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<v Speaker 3>our parliamentary term. The only reason the budget was changed

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<v Speaker 3>by a week is we have the Eurogroup and the

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<v Speaker 3>ecofin meeting happening in the second week of October and

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<v Speaker 3>I can't be in Dublin and Brussels at the same time.

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<v Speaker 3>So always changed for that reason and that reason.

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<v Speaker 1>Only many political vettors to juggle. Thank you, so thank you,

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<v Speaker 1>Ver morche Dono, the Eurogroup President. Life from this economy

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<v Speaker 1>conferences in excellent for US.