Memo: Preparation of Eurogroup and Economic and Finance Ministers Council, Brussels, 9 and 10 February (Amelia Torres, Oliver Drewes, Maria Assimakopoulou, Valérie Rampi)

Euro area ministers will discuss the economic situation and developments in the financial markets as well as implications for public finances. Commissioner Almunia is expected to say that data released since the cut-off date of the interim forecast (13 January 2009) largely confirm the bleak picture described in the forecast. On the external side, world trade and industrial production deteriorated sharply by end-2008. On the domestic side, hard data have continued to send worrying signals, while survey indicators have given a glimmer of hope, showing some tentative signs of stabilisation. Although improving in some segments, the overall situation in financial markets remains fragile.