Let me begin on the economic outlook.
While growth data has been more positive this year than previously expected, the overall outlook remains clouded in uncertainty.
This is especially true when it comes to energy prices, which remain very high and volatile.
I will present the Commission's Autumn Economic Forecast next week, on 17 November.
Shortly after, on 24 November, the Commission will publish its European Semester Autumn Package.
This will include an assessment of Member States' compliance with the EU fiscal rules.
We are at a critical juncture for fiscal policy.
Member States deficits remain high, and debt levels continue to increase in some high-debt countries.
At the same time, interest rate spreads widened, pointing to concerns about these Member States' fiscal positions.
This calls for very prudent fiscal policies.
Compliance with the fiscal rules is imperative to confirm the credibility of our fiscal framework.
The budgets for 2027 should deliver on this collective responsibility.
Then, we welcomed NATO Secretary-General Mark Rutte for an important discussion on defence and defence spending.
When it comes to investing in our defence capabilities, three things are clear.
We need to spend more.
We need to spend better.
And we need to spend together.
Today's discussion covered all these points.
On spending more, it is encouraging that EU defence spending is rising steadily, from around 1.2% of GDP in 2021 to an expected 2% by 2027.
On spending better, the EU must invest more in defence research and development.
This brings benefits beyond defence itself.
It can drive innovation and productivity growth across the wider economy, especially where technologies have both military and civilian uses.
And on spending together, European defence procurement remains too fragmented, with Member States still largely buying nationally.
Scaling up joint procurement will be key to strengthening Europe's defence production capacity.
All of this comes at a time when fiscal space is limited and public finances are under pressure from competing priorities.
To sustain higher defence spending, Member States will need to gradually reprioritise their national budgets.
The national escape clause offers flexibility until 2028, so planning for that reprioritisation cannot wait.
I updated the Eurogroup on where we stand on the legislative negotiations for the digital euro, where the co-legislators are moving at a steady pace.
Our objective, as set out in our "One Europe, One Market" roadmap, is to reach an agreement by the end of this year.
I am confident that this goal remains within reach, but it requires constructive engagement from all sides.
I want to thank the co-legislators for their rigorous work in moving this important file forward.
Finally, we welcomed the Chair of the Supervisory Board of the ECB and the Chair of the Single Resolution Board.
Their assessment of the latest developments confirms that the European banking sector remains financially sound.
Their presentation also touched on opportunities digitalisation and financial innovation – notably AI – are creating for European banks to enhance efficiency, improve customer services and strengthen their competitiveness.
Thank you. I will stop here.
