Euro Zone to Tighten Fiscal Policy in 2023, But Ready to Reverse Amid Ukraine War

(R-L) European Commissioner for Economy Paolo Gentiloni, European Commission Vice-President Valdis Dombrovskis, Finance Minister of Ireland and President of Eurogroup Paschal Donohoe and President of European Central Bank Christine Lagarde stand at the beginning of a Eurozone finance ministers meeting in Brussels, on March 14, 2022. Yves Herman/Reuters

BRUSSELS—Euro zone finance ministers agreed on Monday to tighten fiscal policy a little next year after three years of pumping billions into the economy due to the coronavirus pandemic, but also to be ready with more cash should the war in Ukraine make it necessary.

“The fundamentals of the euro area economy are strong,” the ministers from the 19 countries sharing the euro said in a statement after regular talks.