Memo: Preparation of Eurogroup and Informal Economic and Finance Ministers Council, Göteborg (Sweden), 1 and 2 October 2009

Eurogroup ministers will meet on Thursday 1 October 2009. Joaquín Almunia, Commissioner responsible for Economic and Monetary Affairs will attend as will European Central Bank Governor Jean-Claude Trichet. A press conference is scheduled to take place after the meeting.

Ministers are expected to be de-briefed on last week's G20 meeting as well as to prepare the IMF /WB annual meetings on 3-4 October, in Istanbul. Ministers are also set to continue discussions, started in July, on the effect of the crisis on potential growth at country level. Pre-crisis projections predicted a fall in EU potential growth from 2% to just over 1% a year from 2020, due to ageing populations. With the financial crisis - which has weakened investment opportunities as demand falls and credit becomes more expensive - the growth potential is estimated to have dipped below 1% already in 2009 and 2010 and to recover to only around 1½ % in subsequent years. The situation, and the necessary policy responses, can vary a lot from country to country because not all countries have the same fiscal position and sustainability problems and many also need to address external imbalances and/or competitiveness problems.