Thank you, Paschal also for your kind words. It was really a great cooperation we've had in these five years.
We started our meeting with an update on the economic outlook.
The euro area economy remains on a moderate trajectory of growth. Interesting to note, two weeks ago the IMF World Economic Outlook predicted 0.8% GDP growth for the euro area this year – exactly the same as our Spring Forecast. We had better-than-expected figures for the third quarter, especially for countries like Germany, France and Spain. But growth remains overall low.
The latest employment figures are also positive, with labour markets remaining historically strong. The euro area unemployment rate stood at 6.3% in September. That's a decrease in the number of unemployed of three hundred and thirty thousand people, which in a year of low growth is not nothing.
On the inflation front, there has been an uptick in October with inflation rising to 2%. Nevertheless, we do not expect this will lead to a substantial deviation from the disinflationary path.
However, geopolitical tensions and uncertainty weigh on consumption, investment and business sentiment. Volatility in energy prices has increased in recent weeks. And momentum from global growth and trade has been weak.
We will take all these elements into consideration in our Autumn Forecast that I will present next week on 15 November.
In this context, let me stress how important it is that the euro area continues a path that combines fiscal consolidation with both growthenhancing investments and structural reforms. It is the famous narrow path that we are walking with the implementation of the new economic governance rules.
We are now working hard with Member States to make a reality of the new rules with the first medium-term fiscal structural plans. The Commission has so far received plans from 21 Member States which we are now assessing.
On competitiveness, let me welcome today's statement and thank Paschal for his efforts to achieve this result. We now have a shared diagnosis among euro area finance ministers of the key challenges we are facing and the policy priorities to lift our competitiveness.
The Commission supports this statement. I especially welcome the recognition of the significant financing needs associated with our common priorities, along with the need for a combination of private and public resources, and for European financing in areas where public goods can be more effectively delivered jointly.
As you know, competitiveness will also be the focus of the leaders' discussion in Budapest later this week.
Let me thank the Chairs of the SSM and SRB. It's clear that the euro area banking sector today is in a much better position than it was ten years ago. During the crises of the last few years, the European banking sector has proved its resilience. And this is also thanks to the establishment of the Banking Union and the regulatory framework put in place at EU level after the global financial crisis.
However, if we are serious about mobilising the private sector financing which we all agree is essential to address our investment needs, then we will need to see far more progress in our financial integration – both Banking Union and Capital Markets Union – in the next mandate. The Eurogroup is well placed also with the decision taken today to push for this.
