Remarks by Commissioner Dombrovskis to the 2026 Government Borrowers Forum

Dombrovskis to the 2026 Government Borrowers Forum

Labrit, Riga!

Good morning from Brussels.

I regret that I am unable to join you in Riga in person.

But I'm grateful that I can still contribute to this year's important exchanges, even from a distance.

“Resilience amid uncertainty and volatility.”

It is a theme that needs no justification.

Volatility has become the rule rather than the exception in recent years.

Global pandemics, Russia's full-scale invasion of Ukraine, an energy crisis created by the conflict in the Middle East, and trade tensions have tested us time and again.

The Baltic States have once again experienced the sharp edge of this volatility in recent weeks in the form of Russia's hybrid attacks.

Amid the vocal support from EU and NATO, these attacks serve as a stark reminder of Europe's most pressing challenge: preserving our security by taking greater responsibility for our defence.

And boosting security on our Eastern Flank, in particular.

Through all these tests, the European economy has remained remarkably resilient.

Our latest Economic Forecast projects that the EU economy is still expected to continue expanding, albeit at a slower pace and amid rising inflation.

Resilience is not only about surviving volatility.

True resilience is the capacity to use moments of disruption to build strength and durability.

There is wisdom in the old saying: never waste a good crisis.

Faced with what now feels like a near-permanent state of volatility, the European Union must act decisively: to strengthen its economic and financial security and its capacity to promote its own interests.

A greater international role of the euro is precisely the kind of initiative that serves both of those objectives.

It has the potential to deliver important practical benefits for the EU economy.

This includes, most relevant for today's audience, the potential to substantially lower financing costs.

Of course, low financing costs and stable funding sources require, first and foremost, a solid economic foundation.

This is why we need to push forward with the implementation of our competitiveness agenda.

Europe needs to become more innovative, improve and simplify its business environment, remove single market barriers and improve the functioning of capital and labour markets, upgrade the skills of its labour force and secure affordable energy sources.

Tomorrow, the European Commission will issue country-specific recommendations on reforms and investments aligned with these priorities for all 27 EU Member States, as part of its European Semester Spring Package.

Our Savings and Investments Union strategy will play a key role in strengthening Europe's economy and the international role of the euro.

At its core, it aims to create a more robust, liquid, and unified EU financial market.

One that enhances our financial system's capability to channel Europe's savings towards productive investments.

The Baltic States are leading by example.

Progress on integrating capital markets is already well underway, helping to create new opportunities that would have not have otherwise been possible.

By deepening and integrating Europe's capital markets, we can massively expand the existing pool of euro-denominated assets.

A larger, more liquid, supply of euro assets is a prerequisite for attracting global investors, thereby raising the euro's visibility and credibility on the world stage.

A stronger international role for the euro, in turn, feeds back into the Saving and Investments Union's objectives.

When the euro is perceived as a more reliable store of value and a widely used transaction currency, funding costs for euro-area issuers fall, external financing sources become more diversified, and capital inflows increase.

These benefits amplify the Saving and Investment Union's capacity to mobilise private savings by unlocking more productive investment opportunities across the EU.

Finally, the digital euro also has an important role to play in enhancing our sovereignty and strategic autonomy.

Today, more and more Europeans are choosing to pay digitally.

The share of cash payments in the euro area between 2019 and 2024 dropped from 72% to 52% at the point of sale.

Yet, we lack a genuine European digital means of payment to fill the space left behind by this decline in the use of cash.

So, our currency must also adapt to keep up.

But the digital euro is not just about convenience for European consumers.

It guarantees that central bank money remains available and usable in today's digital world.

It reinforces the euro's role as the trusted anchor of our monetary system.

And it provides an alternative in a context where our payments landscape is highly dominated by non-European providers.

Technological change is reshaping finance at pace.

The euro must keep up and position itself as a currency ready and able to move with the times.

The focus must now be on completing the legislative work for the digital euro and accelerating our preparatory steps.

With that, I would like to once again express my thanks to the Treasury of the Republic of Latvia for hosting this year's Forum.

I look forward to hearing the outcomes of your discussions.

I wish you all a very productive Forum, filled with new connections and fresh insights.

As well as an enjoyable stay in my beautiful home city.

Thank you.