Thank you, Kyriakos. Good morning, everyone. It's good to be back in Dublin.
This week is well suited to taking stock, looking ahead, and preparing for a busy end of year. That is what we just did.
Numerous headwinds, including energy-related disruptions and the impact of this summer's extreme weather events, are expected to take a toll on Europe's economy. This is not news to anyone. But the euro area economy is once again proving its resilience, performing somewhat better than expected in the first half of this year. However, we expect growth will slow down next year, according to the European Commission's latest assessment.
As President von der Leyen made clear in her State of the Union speech: Kickstarting the European economy remains the Commission's number one priority. If we are serious about this, it must be reflected in our collective policy choices. Let me highlight three key areas, in particular.
First and foremost, safeguarding our fiscal sustainability. Recent weeks have seen a marked increase in sovereign yields across most advanced economies. This is a global phenomenon. And its impact will be felt gradually across Europe, particularly by Member States with higher public debt.
This should focus minds. Member States must prioritise prudent fiscal policies, sticking to the targets set out in medium-term plans, targeted and temporary energy support measures, carefully calibrating the use of available flexibility for defence and security measures, and improving the quality of their public finances.
Second, making the most of the opportunities that our common currency provides by strengthening the international role of the euro, and ensuring that legislative negotiations on the digital euro cross the finish line by the end of this year.
The European Parliament's own initiative report on the global role of the euro, adopted earlier this week, is a welcome contribution to this work.
And third, enhancing our competitiveness by making Europe a better place to invest, innovate and grow. Including by advancing on our competitiveness and simplification agendas. On this last point, we stand at a crossroads. Which brings me to the next item on today's agenda.
We all know that Europe has a productivity problem. And that this has profound implications for our long-term welfare, prosperity and security. We must all, therefore, act urgently to reverse this trend.
What needs to be done is clear: a full and timely implementation of the EU competitiveness agenda. Implementing the competitiveness compass, moving forward with simplification and making progress on our One Europe, One Market roadmap. We are making progress, but there is no room for complacency.
The European Commission is determined to continue playing its part. Building a more competitive Europe is a shared responsibility. We must all be prepared to shoulder it. Acting together, on all fronts, and at all levels.
