COUNCIL OF THE EUROPEAN UNION interesting latest news

 

06/12/2022 17:00 | Press release ECOFIN: Ministers debate financial assistance to Ukraine, a revision of fiscal rules and a recovery plan for Hungary Today in Brussels, EU finance ministers led by Zbyněk Stanjura discussed the continuation of macro-financial assistance to Ukraine worth EUR 18 billion next year. They also opened a debate on the European Commission’s report on a possible revision of European fiscal rules and adopted a joint declaration calling on the European Parliament to reduce staff spending.

6 December 202217:00

ECOFIN: Ministers debate financial assistance to Ukraine, a revision of fiscal rules and a recovery plan for Hungary


© EU


Today in Brussels, EU finance ministers led by Zbyněk Stanjura discussed the continuation of macro-financial assistance to Ukraine worth EUR 18 billion next year. They also opened a debate on the European Commission’s report on a possible revision of European fiscal rules and adopted a joint declaration calling on the European Parliament to reduce staff spending.


"It is no secret that the approval of EUR 18 billion in new assistance to Ukraine for next year, the Hungarian national recovery and resilience plan, Pillar Two of the OECD agreement and minimum corporate tax rates are linked. They are a package dependent on how Hungary continues in its reforms in the field of public procurement control," said Minister of Finance Zbyněk Stanjura.

A European Commission report of 30 November assessed Hungary’s progress in adopting legislation to protect funds from EU budgets. In it, although the Commission proposed blocking Hungary’s access to EU structural funds of EUR 7.5 billion due to insufficient reforms, it concurrently approved the Hungarian recovery and resilience plan of EUR 5.8 billion. However, the Commission made the disbursement conditional on the continuation of introducing reforms in this area.

"I am aware of the ongoing reform process in Hungary, which is evolving on a daily basis, and this is why we called the Commission to update its assessment today. Hungary is ready to fully cooperate in this task. The goal is to find a compromise based on the updated report within only a few days," Zbyněk Stanjura explained, adding: "After that it is already a procedural matter, and we will probably convene an extraordinary Ecofin videoconference and approve the entire package of measures by the end of the year."

The finance ministers today approved an amendment to the financial regulation based on which the European Commission may commence steps leading to securing EUR 18 billion for Ukraine. "Our priority remains providing Ukraine with this money at the start of January. I think that the credibility and reputation of the whole of the Union depends on this, and that we cannot afford further procrastination," Zbyněk Stanjura emphasised.

The finance ministers also discussed a revision of the Energy Taxation Directive. The majority of Member States supported the direction given by the Czech Presidency comprising greater flexibility to reflect the national specifics of taxation systems. The debate from the informal ECOFIN meeting in Prague regarding the revision of fiscal rules based on the European Commission economic governance review also continued.

"The escape clause from the Stability and Growth Pact will be extended for the third year. This means that nobody has to comply with the European rules and that nobody checks they are being observed. Yet it is not enough to blame the crisis because we have been going through a crisis for the last 13 years. The result is a dramatic deepening of public debts in the EU, which we cannot continue to ignore," Zbyněk Stanjura said, adding: "After the end of our Presidency, I will support our Swedish colleagues in seeking an agreement, as soon as possible, on new fiscal rules that will be transparent, binding and, above all, enforceable."

The finance ministers ended by adopting a declaration in which the EU Member States called on the European Parliament to reduce staff expenditure in the coming years. "With the current growing pressure to make savings across expenditure, I consider it essential that EU institutions also tighten their belts and that, in particular, the European Parliament reduces its non-essential staff costs to the bare minimum," Zbyněk Stanjura concluded.

video https://audiovisual.ec.europa.eu/en/video/I-234326?&lg=INT

Press material Tuesday 6 December 2022

● European Council   06/12/2022 16:17 | Statements and remarks | Tirana Declaration, 6 December 2022   The EU-Western Balkans summit took place in Tirana, Albania, on 6 December 2022. The Tirana declaration was agreed. Full text of the Tirana declaration of the EU-Western Balkans summit

Meetings Tuesday 6 December 2022

● Council of the EU   06/12/2022 16:16 | MEETING | Main results - Economic and Financial Affairs Council, 6 December 2022   Economy and finance ministers discussed a legislative package on €18 billion in financial support to Ukraine, the suggested reforms of the economic governance framework, the revision of the energy taxation directive and they took stock of the implementation of the Recovery and Resilience Facility.

Council of the EU
Economic and Financial Affairs Council, 6 December 2022

Main results
At the end of the meeting, Zbyněk Stanjura, Minister for Finance of Czechia and current chair of the Council in Ecofin formation, handed over the chairmanship to Elisabeth Svantesson, Minister for Finance of Sweden. Sweden takes over the Presidency of the Council in January 2023
Financial support to Ukraine

The Council discussed a legislative package on €18 billion in financial support to Ukraine. It adopted one of the three pieces of legislation which aim to provide for a structural solution to financially support Ukraine in 2023.An amendment to the financial regulation, allowing the financing of the macro-financial assistance to take place within the so-called diversified funding strategy.

It did not adopt the remaining items in the package:An amendment to the multiannual financial framework, allowing the use of the headroom to guarantee the borrowing for Ukraine in the years 2023 and 2024.
The macro-financial assistance + instrument (“MFA+ instrument”) which creates the framework to provide the support to Ukraine, including the areas of support and the conditions for Ukraine to benefit from that support.



Ukraine needs our help urgently. There was a clear political will expressed in the room today on our determination to help Ukraine, also financially. I am pleased that we have adopted at least one of the three financial measures, for which a qualified majority was required. The Commission can now start the process of borrowing funds so that we can provide financial support to Ukraine in early January. I am sure that we cannot afford any more delays.Zbyněk Stanjura, Minister for Finance of CzechiaRecording of the discussion
EU solidarity with Ukraine (background information)
EU relations with Ukraine (background information)
Economic governance review

The Commission presented its communication on the economic governance review. This was the first opportunity for ministers to have a discussion on the Commission’s communication. Ministers shared their initial positive observations, voiced their remaining questions and concerns, and looked forward to constructive discussions on the various aspects of the suggested reforms in the coming months, in order to provide the Commission with the political backing it needs for its next steps. Discussions will now continue at the level of experts.Economic governance framework (background information)
Economic recovery in Europe

The Council took stock of the implementation of the Recovery and Resilience Facility, following a presentation by the Commission on the state of play.

The Recovery and Resilience Facility is the EU’s programme of large-scale financial support in response to the challenges the pandemic has posed to the European economy. The facility’s €672.5 billion are used to support the reforms and investments outlined in the member states’ recovery and resilience plans.A recovery plan for Europe (background information)
Energy taxation

Ministers held a policy debate on the revision of the energy taxation directive. They welcomed the progress made and expressed their commitment to continue work towards reaching an agreement as soon as possible.Recording of the discussion
Presidency note
Energy prices and security of supply (background information)
Fit for 55 (background information)
EU’s new own resources

The Presidency presented its report on the discussions on new own resources for the Union.Recording of the presentation
Presidency report
EU budget (background information)
Current financial services legislative proposals

The Presidency presented the state of play as regards legislative proposals in the field of financial services.Recording of the presentation
Progress on legislative files in the area of financial services
Digital finance (background information)
Capital Markets Union (background information)
European Semester 2023

The Commission presented the annual sustainable growth survey 2023, the alert mechanism report 2023 and its recommendation for a Council recommendation on the economic policy of the euro area.European Semester (background information)
EU budget for 2023

As a follow-up to the adoption of the EU budget for 2023, the Council agreed a statement on heading 7 which concerns administrative expenditure of the EU institutions.EU budget (background information)
Implementation of the EU budget in 2021

The President of the European Court of Auditors presented the annual report on the implementation of the budget for the financial year 2021.EU spending: auditors find increased errors (European Court of Auditors)
EU budget (background information)
Business taxation: Code of Conduct group

As an item without discussion, the Council approved conclusions on the progress achieved by the Code of Conduct Group.Council approves conclusions on the progress achieved by the Code of Conduct Group (business taxation) in the second half of 2022 (press release, 6 December 2022)
EU list of non-cooperative jurisdictions (background information)
Code of Conduct Group (business taxation) (background information)
Report to the European Council on tax issues

As an item without discussion, the Council approved its report to the European Council on tax issues. Economy and finance ministers report to the European Council on tax issues twice a year.Report
Taxation (background information)
EU budget: rule of law conditionality mechanism

Over breakfast, the Council discussed the proposal for a Council implementing decision on measures for the protection of the Union budget against breaches of the principles of the rule of law in Hungary. Ministers used this opportunity to give a first reaction to the assessment of remedial measures taken by Hungary, which the Commission published on 30 November. The Council’s deadline for its decision on the measures is 19 December.Communication from the Commission to the Council on the remedial measures notified by Hungary for the protection of the Union budget
Long-term EU budget 2021-2027 and recovery package (background information)
EU budget (background information)


New internationally agreed rules aim for a fair and effective taxation for multinational groups
Taxation: global minimum level of taxation (Pillar 2)

Over breakfast, the Council discussed a directive on ensuring a global minimum level of taxation for multinational groups in the Union.Digital taxation (background information)

The Council also adopted without discussion the items on the list of non-legislative A items.


Meeting information

Meeting n°3918
Brussels
6 December 2022
10:00
Preparatory documentsBackground brief
Provisional agenda
List of A items, non-legislative activities
Outcome documentsList of participants

Press material Tuesday 6 December 2022

● Council of the EU   06/12/2022 12:37 | Press release | Council approves conclusions on the progress achieved by the Code of Conduct Group (business taxation) in the second half of 2022   Today, the Council approved conclusions welcoming the progress achieved by the Code of Conduct Group during the Czech Presidency, in particular its recent reform which highlights the strengthened political commitment of the member states to continue fighting harmful tax practices. Concerning the revision of the EU list of non-cooperative tax jurisdictions, the Council invites the Code of Conduct Group to continue an effective dialogue with jurisdictions and monitoring, so that jurisdictions continue to fulfil their respective commitments and comply with the EU listing criteria in accordance with the agreed deadlines. Council conclusions on the progress achieved by the Code of Conduct (Business Taxation) Group during the Czech Presidency Report to the Council by the Code of Conduct Group covering the second half of 2022 Taxation: Finance ministers agree to strengthen the code of conduct used to identify and curb harmful tax measures of member states (press release, 8 November 2022) Taxation: Anguilla, The Bahamas and Turks and Caicos Islands added to EU list of non-cooperative jurisdictions for tax purposes (press release, 4 October 2022) EU list of non-cooperative jurisdictions (background information) Code of Conduct Group (Business Taxation)

Press material Tuesday 6 December 2022

● Council of the EU   06/12/2022 11:16 | Press release | European digital identity (eID): Council makes headway towards EU digital wallet, a paradigm shift for digital identity in Europe   The Council adopted its common position (‘general approach’) on the proposed legislation regarding the framework for a European digital identity (eID). The revised regulation aims to ensure universal access for people and businesses to secure and trustworthy electronic identification and authentication by means of a personal digital wallet on a mobile phone. "Digital technologies can make our life so easy. I am convinced that a European digital identity wallet is indispensable for our citizens and businesses. We are looking at a massive advancement in how people use their identity and credentials in everyday contact with both public and private entities, and in how they use digital services. All while firmly keeping control over their data." Ivan Bartos, Czech Deputy Prime minister for digitalisation and minister of regional development In June 2021, the Commission proposed a framework for a European digital identity that would be available to all EU citizens, residents and businesses, via a European digital identity wallet. The proposed new framework amends the 2014 regulation on electronic identification and trust services for electronic transactions in the internal market (eIDAS regulation), which laid the foundations for safely accessing public services and carrying out transactions online and across borders in the EU. The proposal requires member states to issue a digital wallet under a notified eID scheme, built on common technical standards, following compulsory certification. To set up the necessary technical architecture, speed up the implementation of the revised regulation, provide guidelines to member states and avoid fragmentation, the proposal was accompanied by a recommendation for the development of a Union toolbox defining the technical specifications of the wallet.

Press material Tuesday 6 December 2022

● Council of the EU   06/12/2022 11:12 | Press release | Maritime safety: provisional agreement between Council and Parliament to improve stability requirements for ‘ro-ro’ passenger ships   The Council and the European Parliament have reached a provisional political agreement on amending the current legislation in order to improve stability requirements for ‘ro-ro’ (roll-on/roll-off) passenger ships. The amended directive will play an important part in ensuring the safety of these vessels in the EU, in accordance with the new international standards in the field (SOLAS Convention). "The agreement will make travelling by car ferries safer in Europe. This is good news for the many EU citizens who commute to work or go on holiday. The new law guarantees these vessels will have to fulfil strengthened stability requirements." Martin Kupka, Czech minister of transport

Press material Tuesday 6 December 2022

● Council of the EU   06/12/2022 10:23 | Press release | Artificial Intelligence Act: Council calls for promoting safe AI that respects fundamental rights   The Council has adopted its common position (‘general approach’) on the Artificial Intelligence Act. Its aim is to ensure that artificial intelligence (AI) systems placed on the EU market and used in the Union are safe and respect existing law on fundamental rights and Union values. "Artificial Intelligence is of paramount importance for our future. Today, we managed to achieve a delicate balance which will boost innovation and uptake of artificial intelligence technology across Europe. With all the benefits it presents, on the one hand, and full respect of the fundamental rights of our citizens, on the other." Ivan Bartoš, Czech Deputy Prime Minister for digitalisation and minister of regional development The draft regulation presented by the Commission in April 2021 is a key element of the EU’s policy to foster the development and uptake across the single market of safe and lawful AI that respects fundamental rights. The proposal follows a risk-based approach and lays down a uniform, horizontal legal framework for AI that aims to ensure legal certainty. It promotes investment and innovation in AI, enhances governance and effective enforcement of existing law on fundamental rights and safety, and facilitates the development of a single market for AI applications. It goes hand in hand with other initiatives, including the Coordinated Plan on Artificial Intelligence which aims to accelerate investment in AI in Europe.

Press material Tuesday 6 December 2022

● Council of the EU   06/12/2022 04:04 | Press release | Council and Parliament strike provisional deal to cut down deforestation worldwide   The Council and the European Parliament reached a provisional deal on a proposal to minimise the risk of deforestation and forest degradation associated with products that are imported into or exported from the European Union. The agreement is provisional pending formal adoption in both institutions. "The EU is a large consumer and trader of commodities that play a substantial part in deforestation - like beef, cocoa, soy and timber. The new rules aim to ensure that when consumers buy these products, they don't contribute to further degrading forest ecosystems. Protecting the environment around the world, including forests and rainforests, is a common goal for all countries and the EU is ready to take its responsibility." Marian Jurečka, Czech minister of the environment The provisional agreement sets mandatory due diligence rules for all operators and traders who place, make available or export the following commodities from the EU market: palm oil, beef, timber, coffee, cocoa, rubber and soy. The rules also apply to a number of derived products such as chocolate, furniture, printed paper and selected palm oil based derivates (used for example as components in personal care products). A review will be carried out in two years to see if other products need to be covered. The co-legislators set the cut-off date of the new rules at 31 December 2020, meaning that only products that have been produced on land that has not been subject to deforestation or forest degradation after 31 December 2020 will be allowed on the Union market or to be exported. The Council and Parliament agreed to set a definition for deforestation, based on a definition from the Food and Agriculture Organisation (FAO). They set an innovative concept for the definition of ‘forest degradation’ meaning the structural changes to forest cover, taking the form of the conversion of naturally regenerating forests and primary forests into plantation forests and other wooded land and the conversion of primary forests into planted forests. The co-legislators agreed on stringent due diligence obligations for operators, which will be required to trace the products they are selling back to the plot of land where it was produced. At the same time, the new rules avoid duplication of obligations and reduce administrative burden for operators and authorities. It also adds the possibility for small operators to rely on larger operators to prepare due diligence declarations. The Council and Parliament agreed to set up a benchmarking system, which assigns to third and EU countries a level of risk related to deforestation and forest degradation (low, standard or high). The risk category will determine the level of specific obligations for operators and member states’ authorities to carry out inspections and controls. This would facilitate an enhanced monitoring for high-risk countries and simplified due diligence for low-risk countries. The Council and Parliament also tasked the competent authorities to carry out checks on 9% of operators and traders trading products from high, 3% for standard-risk countries and 1% from low-risk countries, in order to verify that they effectively fulfil the obligations laid down in the regulation. In addition, competent authorities will carry out checks on 9% of the quantity of each of the relevant commodities and products placed, made available on, or exported from their market by high-risk countries. The agreement also takes into account human rights aspects linked to deforestation, including the right to free, prior and informed consent by indigenous peoples. The agreement maintains the provisions regarding effective, proportionate and dissuasive penalties and enhanced cooperation with partner countries, as proposed by the Commission. It provides that fines proportionate to the environmental damage and the value of the relevant commodities or products concerned should be set at the level of at least 4% of the operators' annual turnover in the EU and include a temporary exclusion from public procurement processes and from access to public funding. Background and next steps The Commission published its proposal for a regulation on 17 November 2021. The Council adopted its general approach on 28 June. The provisional agreement reached with the European Parliament now needs to be endorsed and formally adopted by both institutions. The main driver of global deforestation and forest degradation is the expansion of agricultural land, which is linked to the production of the commodities included in the scope of the regulation. As the EU is a major consumer of such commodities, it can reduce its impact on global deforestation and forest degradation by making sure these products and related supply chains are ‘deforestation-free’. General approach on deforestation and forest degradation Commission proposal for a regulation on deforestation-free products United Nations Declaration on the Rights of Indigenous Peoples