EUROGROUP-COUNCIL OF THE EUROPEAN UNION latest

 

Meetings Monday 15 May 2023

● Eurogroup   15/05/2023 22:45 | MEETING | Main results - Eurogroup, 15 May 2023   The Eurogroup discussed macroeconomic developments in the euro area and structural challenges for the corporate sector in the context of heightened geopolitical tensions. Ministers also exchanged views on the banking and capital markets unions and took stock of progress on the digital euro project.

Meetings

Eurogroup
Eurogroup, 15 May 2023

Highlights from the Eurogroup meeting held in Brussels on 15 May 2023
Main results
Macroeconomic developments in the euro area

The Commission presented its Spring Economic Forecast to the Eurogroup. On this basis, the Eurogroup exchanged views on the economic prospects and challenges for policy coordination going forward.



Overall, the picture is still one of economic resilience within the euro area. However, also one where our growth is continuing to hold up at a level that is better than we would have expected. At the same time, inflation is still too high and it needs to come down. We acknowledged that what continues to be so important to our societies is the level of employment, which is a real bright spot where you see a record number of people at work.Paschal Donohoe, President of the EurogroupSpring 2023 economic forecast (European Commission)
Corporate sector: structural challenges ahead in the context of heightened geopolitical tensions

On the basis of a Commission note, ministers discussed the challenges facing the euro area corporate sector in the context of heightened geopolitical tensions.


We saw some sectors that have been hit by the surge in energy prices. But we also saw other sectors that have actually seen a growth in their profitability. Unlike households, companies that are receiving support will have to look at how they can support their own long-term viability, as the support measures that we have in place will have to come to an end at some point and can't undermine the ability of our economies and our governments to efficiently allocate resources. We also underscored the need for support measures that avoid the fragmentation of the single market and maintain consistency with the longer-term policy goals that are there, such as the green transition and a greater degree of energy independence.Paschal Donohoe, President of the Eurogroup
Debrief from international meetings

The Eurogroup President Paschal Donohoe, the ECB, the European Commission and the chair of the International Monetary and Financial Committee (IMFC), Spain’s first vice-president and minister for economy and digitalisation Nadia Calviño, debriefed on recent international meetings, including the recent meetings of the G7 finance ministers and central bank governors.G7 Meeting of finance ministers and central bank governors
Reporting on banking union

Ministers of countries that are part of the banking union heard the bi-annual report of the chairs of the Single Supervisory Mechanism (SSM) and of the Single Resolution Board, Andrea Enria and Dominique Laboureix. Following the chairs’ attendance at the previous Eurogroup meeting in April, this provided further insights on the state of the banking sector in light of recent financial events. As customary, participants also heard reports on the supervisory and resolution activities in the institutions’ remit.SRB bi-annual reporting note to Eurogroup
Written overview ahead of the exchange of views of the Chair of the Supervisory Board of the ECB with the Eurogroup on 15 May 2023
Banking union (background information)
Single Supervisory Mechanism
Single Resolution Board
Central bank digital currencies

The Eurogroup in inclusive format exchanged views on the international aspects of central bank digital currencies (CBDCs) and on the progress on the digital euro project. The discussion was based on an issues note, presentations by the institutions and an update by the Swedish minister for finance, Elisabeth Svantesson, on the state of play of the e-krona project.


We discussed the benefits and the drawbacks of potentially allowing users outside of the euro area to have access to the digital euro and the ECB presented to us the options and the trade-offs that are involved in making the digital euro work with other central bank digital currencies. We all acknowledge the importance of international cooperation in this area and our Swedish colleague Elisabeth also updated us on work that is happening elsewhere in the European Union regarding the development of the e-krona. So we'll come back to this topic again shortly as the ECB continues its work in concluding the investigative phase of a digital euro.Paschal Donohoe, President of the EurogroupThe discussion was part of a regular exchange in the Eurogroup on the digital euro project and stocktaking on the progress of international central bank digital currency projects.Towards a digital euro (background information)
Digital finance (background information)
International aspects of CBDCs: update on digital euro (ECB)
Capital markets union

The Eurogroup President presented his views on how to advance the capital markets union as a follow-up to the March 2023 Eurosummit and in line with discussions in the Eurogroup meeting in inclusive format of 28 April 2023.


I put forward a process to ministers that was agreed tonight. We will set ourselves the aim of, by March 2024, reaching agreement on areas that we would ask the next Commission to consider regarding how we would deepen the Capital Markets Union. This is all about a strategic discussion regarding areas in which further progress is possible and likely in the years ahead. We want to go beyond those topics that are already on the legislative agenda and have a strategic reflection on further topics that we, the Commission and the European Parliament could tackle that would make a difference to how we can better fund growth within the European Union.Paschal Donohoe, President of the Eurogroup

Ministers discussed the way forward and gave their views on an indicative plan for future work on this topic in the Eurogroup, without prejudice to the legislative discussions taking place in the Council.Eurogroup, 28 April 2023
Eurosummit, 24 March 2023
Capital markets union (background information)


Meeting information

Brussels
15 May 2023
Preparatory documentsIssues note for the Eurogroup in inclusive format: Central Bank Digital Currencies, including an update on the digital euro
Technical note - Corporate vulnerability and the energy crisis: challenges and policy responses (agenda item 2)
Draft agenda, Eurogroup
Draft agenda, Eurogroup in inclusive format
Draft annotated agenda, Eurogroup
Draft annotated agenda, Eurogroup in inclusive format
Outcome documentsList of participants
List of participants, Eurogroup in inclusive format

Press material Monday 15 May 2023

● Eurogroup   15/05/2023 22:25 | Statements and remarks | Remarks by Paschal Donohoe following the Eurogroup meeting of 15 May 2023   We kicked off today with a presentation of the Commission's spring economic forecast that came out earlier today, Paolo may say another word about it. Overall, the picture is still one of economic resilience within the euro area. However, also one where our growth is continuing to hold up at a level that is better than we would have expected. At the same time, inflation is still too high and it needs to come down. We acknowledged that what continues to be so important to our societies is the level of employment, which is a real bright spot where you see a record number of people at work. We moved on to a discussion on the corporate sector, particularly with regard to firms that are potentially vulnerable to higher energy prices. It is overall a mixed picture, we saw some sectors that have been hit by the surge in energy prices. But we also saw other sectors that have actually seen a growth in their profitability. Unlike households, companies that are receiving support will have to look at how they can support their own long-term viability, as the support measures that we have in place will have to come to an end at some point and can't undermine the ability of our economies and our governments to efficiently allocate resources. We also underscored the need for support measures that avoid the fragmentation of the single market and maintain consistency with the longer-term policy goals that are there, such as the green transition and a greater degree of energy independence. We're going to keep on coming back to this topic, particularly with an eye to our July statement on the fiscal policy stance of the euro area. This is an area that ministers have emphasised that we need to continue to monitor. We can't end up in a situation where we are seeing a surge in corporate profitability exactly at a time in which inflation is also too high for too many. I then debriefed my colleagues on the recent international meetings, including the G7 meeting that took place in Japan last week. I updated them on the points that I made on their behalf regarding budget policy coordination and also the discussions that are underway regarding how we can deepen our Banking Union and our Capital Markets Union. This nicely then set the scene for the second half of the meeting. We began by getting an update from the chair of the Supervisory Board, Andrea, and the Single Resolution Board, Dominique, on their recent efforts with regard to the regulation of the banking sector. We've had so many events over the last number of months that have continued to sharpen our focus on the financial sector. We believe the European banking system has demonstrated its resilience in no small part due to the decisions that we have taken in recent years. But there are risks that do lie ahead. There are risks that we can't ignore, and we have more work that we need to do. In terms of what that work will look like, it's to continue to look at how we can deepen the ability of the Single Resolution Fund to act as a liquidity backstop. And it is also the steps that we need to take now in acting on the initiatives that have been brought forward by the Commission with regard to Banking Union that followed on from the Eurogroup discussions on this over the last number of years. These are two really important steps that we can take to continue to strengthen our Banking Union and our banking systems. From this, we moved on to a discussion regarding the digital euro. This is a topic that the Eurogroup has really prioritised over the last 18 months. We discussed the benefits and the drawbacks of potentially allowing users outside of the euro area to have access to the digital euro and the ECB presented to us the options and the trade-offs that are involved in making the digital euro work with other central bank digital currencies. We all acknowledge the importance of international cooperation in this area and our Swedish colleague Elisabeth also updated us on work that is happening elsewhere in the European Union regarding the development of the e-krona. So we'll come back to this topic again shortly as the ECB continues its work in concluding the investigative phase of a digital euro. We also discussed the future of the Capital Markets Union. This is a subject that we have been discussing in recent months. Ministers have emphasised the need for our capital markets to make a bigger contribution to how we can have a greener, more digital and more competitive European Union. Today, following on from the discussion that took place on this subject at the recent Euro Summit, I put forward a process to ministers that was agreed tonight. We will set ourselves the aim of, by March 2024, reaching agreement on areas that we would ask the next Commission to consider regarding how we would deepen the Capital Markets Union. This is all about a strategic discussion regarding areas in which further progress is possible and likely in the years ahead. We want to go beyond those topics that are already on the legislative agenda and have a strategic reflection on further topics that we, the Commission and the European Parliament could tackle that would make a difference to how we can better fund growth within the European Union. I know there'll be lots of challenges and discussions. As I acknowledged in the Eurogroup, there are no easy next steps left, but developments that are taking place across the world remind us of the fact that the European Union will have to find other ways in which we can be competitive beyond the spending of taxpayers’ money. And we are so aware of all of the different changes for which we need to find ways of funding. I look forward to working with all of my colleagues across the next 12 months to identify those priority areas that are capable of making a difference.

Press material Thursday 18 May 2023

● European Council   18/05/2023 05:29 | Media advisory | CHANGE OF TIME: Press briefing ahead of the G7 summit in Hiroshima (Japan) of 19, 20 and 21 May 2023   CHANGE OF TIME The press briefing ahead of the G7 summit in Hiroshima (Japan) of 19, 20 and 21 may 2023 will take place VIA VIDEO CONFERENCE ONLY on Thursday 18 May 2023 at 09.00 (Brussels time) / 16.00 (Japan time). This briefing is "off the record". You can receive the remote connection link if you have been accredited for a press event of a high-level meeting (European Councils, international summits) in 2022 and 2023, please use this link to request the remote connection link. Deadline for registration: Thursday, 18 May 2023 at 08:00 (Brussels time) / 15.00 (Japan time) Further instructions will be sent to all registered participants.

Press material Wednesday 17 May 2023

● European Council   17/05/2023 14:32 | Media advisory | Press briefing ahead of the G7 summit in Hiroshima (Japan) of 19, 20 and 21 May 2023   The press briefing ahead of the G7 summit in Hiroshima (Japan) of 19, 20 and 21 may 2023 will take place VIA VIDEO CONFERENCE ONLY on Thursday 18 May 2023 at 14.15 (Brussels time) / 21.15 (Japan time). This briefing is "off the record". You can receive the remote connection link if you have been accredited for a press event of a high-level meeting (European Councils, international summits) in 2022 and 2023, please use this link to request the remote connection link. Deadline for registration: Thursday, 18 May 2023 at 13.15 (Brussels time) / 20.15 (Japan time) Further instructions will be sent to all registered participants.

Meetings
Tuesday 16 May 2023

● Council of the EU

16/05/2023 18:57 | MEETING |
Main results - Education, Youth, Culture and Sport Council, 15-16 May 2023

EU ministers for culture, media and education met in Brussels to discuss the state of play of the European Media Freedom Act and the importance of reading for social inclusion and quality of life. They also approved conclusions on at-risk and displaced artists and the automatic mutual recognition of education and training qualifications, as well as a resolution on the European Education Area: Looking to 2025 and beyond.
Council of the EU
Education, Youth, Culture and Sport Council, 15-16 May 2023

Main results
Youth and Sport (Monday 15 May)

Youth and sport ministers met in Brussels to discuss the social inclusion of young people in Europe and respect for human rights in international sporting events. They also approved conclusions on the social dimension of a sustainable Europe for youth, as well as resolutions on the outcomes of the 9th cycle of the EU Youth Dialogue (EUYD), the revision of the EU Youth Strategy work plan for 2022-2024, and the representation of EU member states in the World Anti-Doping Agency (WADA).
Respect for human rights in international sports events

Sports ministers discussed the need to ensure respect for human rights in the organisation of major international sporting events. Ministers stressed the need for good governance in sport and discussed ways to strengthen transparency and respect for human rights in the awarding and running of international sporting events, as well as in the activities of national, European and other international sports organisations, in line with the United Nations’ guiding principles. Many ministers highlighted actions being taken in their own countries to protect human rights and combat discrimination more broadly, including by supporting female and LGBT athletes.



International sports events should represent the very best of human values: integrity, mutual respect and a sense of community and fair play. We must fight at all cost any attacks on these principles, whether in the form of corruption, illegal doping, ‘sportswashing’ or violations of human rights.Jakob Forssmed, Swedish Minister for Social Affairs and Public Health

During the discussion, ministers drew attention to the recently published 4th statement addressed to the International Olympic Committee, which states that Russia must not be allowed to use sport to legitimise its invasion of Ukraine. A number of ministers took the floor to express solidarity for Ukraine and emphasise their strong opposition to the participation of Russian and Belarusian athletes in major international sports events such as the upcoming Paris Olympic and Paralympic Games. The Ukrainian Deputy Minister for Youth and Sports, Andriy Chesnokov, and Council of Europe Executive Secretary of EPAS and Head of the Sport Division, Sophie Kwasny, took part in the discussion.Ensuring respect for human rights in the organisation of major international sporting events – information from the presidency
Watch public session


Infographic - Refugees from Ukraine in the EUSee full infographic
Inclusion of young people in EU societies

The Council held a policy debate on the need to promote the inclusion of young people in EU societies, with a focus on young Ukrainians. Ministers exchanged views on ways to address the heterogeneity of ‘young people’ as a group when formulating policies that affect them. They highlighted many of the challenges facing young people today and discussed ways to help them overcome these obstacles, in line with the recommendations emerging from the EU Youth Dialogue, while also stressing the importance of EU programmes such as Erasmus+ and the European Solidarity Corps. They also shared the measures that are already been taken in their countries to support young people, including young Ukrainians who are temporarily displaced.

Ukraine’s Deputy Minister for Youth and Sports, Andriy Chesnokov, took part in the discussion. Mr Chesnokov noted that around 40% of young Ukrainians are currently displaced, with many of them currently benefitting from temporary protection in the EU, and set out Ukraine’s priorities for cooperation with the EU on youth policy. The Council also heard messages from some of the delegates who took part in the EU Youth Conference in Växjö on 20-22 March.

Ministers also approved conclusions on the social dimension of a sustainable Europe for young people, in which it argued that the EU should do more to get young people involved in developing policy for a sustainable future and highlighted their role as key players in implementing the 2030 Agenda for Sustainable Development.Ensuring the inclusion of young people in EU societies: Focusing on inclusion of young Ukrainians – information from the presidency
Involving young people in a sustainable future for Europe (press release, 15 May 2023)
Watch public session
EU Youth Strategy

During the youth session, ministers approved a resolution to ensure that the outcomes of the 9th cycle of the EU Youth Dialogue are recognised and followed-up by relevant stakeholders. They also approved a resolution on the revision of the EU Youth Strategy Work Plan 2022-2024.9th cycle of the EU Youth Dialogue
EU Youth Strategy Work Plan 2022-2024
World Anti-Doping Agency (WADA)

Ministers for sport approved a resolution reviewing the representation of EU member states in the World Anti-Doping Agency (WADA) and coordination of WADA’s activities. The aim of the review is to facilitate the process of designating and replacing EU representatives at WADA meetings. In particular, the Council’s resolution updates the procedure for selecting the EU’s representatives on WADA’s Foundation Board.Resolution on the World Anti-Doping Agency (WADA)
Other business

A number of items were covered under ‘other business’, including the outcome of the discussion at the informal EU Youth Dialogue breakfast, the Macolin Convention, and the European dimension of the 2024 Olympic and Paralympic Games.

The Council adopted without discussion the items on the list of non-legislative A items.France deposits its national ratification instrument of the Convention on the Manipulation of Sports Competitions (the Macolin Convention) – information from the French delegation
The European dimension of the 2024 Olympic and Paralympic Games – information from the French delegation
Culture, audiovisual and education (Tuesday 16 May)

On Tuesday the Council turned its attention to issues concerning culture, media and education. The morning session was devoted to a discussion on the state of play of the European Media Freedom Act, while in the afternoon the focus shifted to the importance of reading for social inclusion and quality of life. Ministers also approved conclusions on at-risk and displaced artists and the automatic mutual recognition of education and training qualifications, as well as a resolution on the European Education Area: Looking to 2025 and beyond.
The importance of reading

Ministers held a policy debate on the importance of reading for learning, equity and active participation in society. They acknowledged the critical role that reading plays in many aspects of life, including education, work, and integration into society, as well as its impact on quality of life. They also stressed that reading is a key factor in achieving an inclusive European Education Area by 2025.

A number of ministers took the floor to present measures being taken in their countries to encourage children and young people to read. These included fostering a love of reading from an early age, ensuring access to libraries, and focusing on teacher training. They also noted the challenges presented by aspects such as the digital transition and the need to recognise the importance of physical books, the issue of gender differences in reading abilities and the specific challenges for children with a migrant background.



When a child starts to read, the doors of the entire universe open to them. Instilling a love of reading at an early age means planting a seed that will bear fruit later when those children become active citizens who are able to exercise their democratic rights.Lotta Edholm, Swedish Minister for Schools

Prior to the start of the discussion, the Council invited Dr Dirk Hastedt, executive director of the International Association for the Evaluation of Educational Achievement, to present the results of the 2021 Progress in International Reading Literacy Study (PIRLS), and a number of member states took the opportunity to reflect on the findings of this study.Results of PIRLS 2021
Watch the public session
European Media Freedom Act

The Council held a policy debate on the proposed European Media Freedom Act (EMFA) on the basis of a progress report and a background note prepared by the presidency. Ministers expressed their views on the parts of the proposal they saw as key in strengthening the media sector and helping journalists exercise their activities independently. These included safeguarding the independence of the proposed European board for media services, taking into account the fast-paced change in the digital sector, and ensuring that journalists’ sources are protected.

A number of member states addressed the links between the EMFA proposal and other EU instruments and legislation, including the new regulatory framework for digital markets and services and existing rule of law provisions. Ministers also discussed key issues that still need to be resolved before an overall agreement can be reached within the Council, including the balance between national security requirements and the need to protect journalists and their sources, better reflecting the specificities of member states, and avoiding any excessive administrative burden.

A number of ministers took the floor to stress their continued commitment to guaranteeing media pluralism and ensuring the protection of journalists as part of a well-functioning democratic society.European Media Freedom Act (EMFA) – progress report
Background paper to the policy debate
Commission proposal COM (2022) 457 final
Watch public session
Media freedom in the EU (background information)
At-risk and displaced artists

The Council approved conclusions on at-risk and displaced artists, in which it notes the crucial role that artists play in the life, development and resilience of societies and individuals, and argues that they should be able to do so while also preserving their creativity and freedom of expression. The conclusions stress the need to protect and support these against any form of threats or violations that put them in danger as a result of their artistic work. Examples of measures that could be taken to protect artists include ‘cities of refuge’, emergency artistic residencies, and efforts to promote their integration into local communities.Council conclusions on at-risk and displaced artists
European Education Area

Ministers approved a resolution on the European Education Area: Looking to 2025 and beyond. The Council’s resolution responds to the progress report published by the Commission in November 2022. The Council also approved conclusions on further steps to make automatic mutual recognition in education and training a reality. The conclusions evaluate the findings of the Commission’s report and propose a number of steps to help make automatic mutual recognition in education and training a reality. They stress that achieving such recognition depends on member states working together to foster mutual trust and transparency.Council resolution on the European Education Area: Looking to 2025 and beyond
Council conclusions on further steps to make automatic mutual recognition in education and training a reality
European Education Area (background information)
Other business

A number of items were covered under ‘other business’, including support for Ukrainian cultural and creative sectors, public libraries and Ukrainian refugees, and the designation of Évora as European Capital of Culture 2027 (for a full list of ‘other business’ items, see the background brief).Support to Ukrainian Cultural and Creative Sectors – information from the presidency
Designation of Évora as European Capital of Culture 2027 – information from the Portuguese delegation
Public libraries and Ukrainian refugees – information from the German delegation


Meeting information

Meeting n°3947
Brussels
15-16 May 2023
Preparatory documentsBackground brief
Provisional agenda
List of A items, non-legislative activities
Outcome documentsList of participants
List of participants





Meetings
Tuesday 16 May 2023

● Council of the EU

16/05/2023 14:58 | MEETING |

Main results - Economic and Financial Affairs Council, 16 May 2023



The Council agreed its position on the ‘DAC8’ directive on administrative cooperation in the field of taxation. It also adopted the regulation on markets in crypto-assets (MiCA) as well as the regulation on information accompanying transfers of funds and certain crypto-assets. Ministers had a first discussion on the proposed review of the Bank Crisis Management and Deposit Insurance framework (CMDI).
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Meetings

Council of the EU
Economic and Financial Affairs Council, 16 May 2023

Main results
Taxation

The Council agreed its position (general approach) on the ‘DAC8’ directive which concerns administrative cooperation in the field of taxation. The amendments mainly concern the reporting and automatic exchange of information on crypto-assets and advance tax rulings for the wealthiest individuals. The aim is to strengthen the existing legislative framework by enlarging the scope for registration and reporting obligations and overall administrative cooperation of tax administrations.



Today we are strengthening the rules for administrative cooperation and closing loopholes that have previously been used to avoid taxation of income. This reduces the risk of crypto-assets being used as a safe haven for tax avoidance and tax fraud. The agreement is yet another example of the EU as a leader in the implementation of global standards.Elisabeth Svantesson, Minister for Finance of SwedenCooperation between national taxation authorities: Council puts the spotlight on crypto-assets and the wealthiest individuals (press release, 16 May 2023)
Recording of the discussion
Bank Crisis Management and Deposit Insurance framework

The Commission presented its proposals on the review of the Bank Crisis Management and Deposit Insurance framework (CMDI). Ministers gave their initial reactions. The in-depth analysis of the proposals will now continue at the level of experts of member states.Recording of the discussion
Commission proposal for a Single Resolution Mechanism Regulation (SRMR)
Commission proposal for a Bank Recovery and Resolution Directive (BRRD)
Commission proposal for a Bank Recovery and Resolution Directive (Daisy chains)
Commission proposal for a Deposit Guarantee Schemes Directive (DGSD)
Eurogroup statement on the future of the Banking Union of 16 June 2022 (press release, 16 June 2022)
Banking Union (background information)


The EU is making it more difficult to misuse crypto-assets for money laundering purposes
Financial services

The Presidency presented the state of play of legislative proposals in the field of financial services.

The Council also adopted the regulation on markets in crypto-assets (MiCA) as well as one of the regulations of the legislative package on anti-money laundering. The latter will improve the availability of information regarding crypto-asset transfers and make it more difficult to misuse crypto-assets for money laundering purposes.


I am very pleased that today we are delivering on our promise to start regulating the crypto-assets sector. Recent events have confirmed the urgent need for imposing rules which will better protect Europeans who have invested in these assets, and prevent the misuse of crypto industry for the purposes of money laundering and financing of terrorism.Elisabeth Svantesson, Minister for Finance of SwedenProgress on financial services files
Digital finance: Council adopts new rules on markets in crypto-assets (MiCA) (press release, 16 May 2023)
Anti-money laundering: Council adopts rules which will make crypto-asset transfers traceable (press release, 16 May 2023)
Recording of the discussion
Capital markets union (background information)
Digital finance (background information)
Economic and financial impact of Russia's aggression against Ukraine

The Council took stock of the economic and financial impact of Russia’s war against Ukraine, focusing in particular on customs-related issues. The Commission updated ministers on the implementation of sanctions against Russia, focusing on the possible circumvention of restrictive measures on the export and import of goods from a customs perspective.EU response to Russia's invasion of Ukraine (background information)
Economic recovery in Europe

Concerning the Recovery and Resilience Facility (RRF), the Commission updated ministers on the state of play on its implementation and ministers had the opportunity to exchange views, including as regards the demand for RRF loans and the experiences with the RRF’s performance-based structure.A recovery plan for Europe (background information)
International meetings

The Presidency and the Commission informed the Council of the main outcomes of the G20 meeting of finance ministers and central bank governors and the IMF spring meetings held on 10-16 April 2023.G20 website
IMF website
European Semester: Economic policy of the euro area

Without discussion, the Council adopted its recommendation on the economic policy of the euro area. On 17 January 2023, the Council had approved the text, subject to the legal linguistic revision, and the European Council had endorsed it at its meeting on 23–24 March 2023.Recommendation on the economic policy of the euro area
Accompanying explanatory note
European Semester in 2023 (background information)
EU budget

As items without discussion, the Council adopted its position on the draft amending budget No 1/2023 which concerns technical adjustments, including on REPowerEU, CBAM and the USC programme, and it approved budgetary transfer No DEC 07/2023. Taking work forward on the EU’s annual budget for 2024, it approved a joint statement on the dates for the budgetary procedure and modalities for the functioning of the Conciliation Committee in 2023.Council position on DAB No 1/2023
Explanatory memorandum on Council position on DAB No 1/2023
Council decision adopting the Council’s position on DAB No 1/2023
Statements on DAB No 1/2023
Commission proposal on DAB No 1/2023
Transfer No DEC 07/2023 (Section III - Commission)
Approval of a letter regarding Transfer No DEC 07/2023
Joint statement on the dates for the budgetary procedure and modalities for the functioning of the Conciliation Committee in 2023
The EU’s annual budget (background information)
EU budget (background information)
Deforestation

The Council also adopted a regulation that aims to minimise the risk of deforestation and forest degradation associated with products that are made available, imported into or exported from the EU market. The EU is a large consumer and trader of commodities such as palm oil, cattle, wood, coffee, cocoa, rubber and soy and products derived from those, like chocolate, personal care products and wooden furniture. The new rules aim to ensure that the consumption and trade of these commodities and products on the EU market don't contribute to deforestation and further degrading forest ecosystems.Council adopts new rules to cut deforestation worldwide (press release, 16 May 2023)
Economic and financial dialogue between the EU and the Western Balkans and Türkiye

In the margins of Ecofin, representatives of the EU Member States, the Western Balkans and Türkiye, the European Commission and the European Central Bank, as well as representatives of the central banks of the Western Balkans and Türkiye met for their annual economic policy dialogue. The dialogue aims to prepare the future participation in the European Semester of the Western Balkans and Türkiye (Montenegro, the Republic of Serbia, North Macedonia, the Republic of Albania, Bosnia and Herzegovina, and the Republic of Türkiye are candidate countries for EU accession, while Kosovo* is a potential candidate).

The participants endorsed joint conclusions in which they highlighted their shared interest to define appropriate policy responses to recent adverse shocks including the economic impact of Russia’s war of aggression against Ukraine. Participants emphasised the common position by the EU and the Western Balkans and Türkiye in deploring in the strongest terms the continued military aggression by the Russian Federation against Ukraine.

* This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence.Joint conclusions of the economic and financial dialogue between the EU and the Western Balkans and Türkiye
Videos and photos of the event

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


Meeting information

Meeting n°3948
Brussels
16 May 2023
Preparatory documentsProvisional agenda
Provisional list of A items
Provisional list of A items, addition 1
Provisional list of A items, addition 2
List of A items, legislative deliberations
List of A items, non-legislative activities
Background brief
Outcome documentsList of participants
Meeting voting results

Press material Tuesday 16 May 2023

● Council of the EU   16/05/2023 10:47 | Press release | Cooperation between national taxation authorities: Council puts the spotlight on crypto-assets and the wealthiest individuals   The Council has reached agreement on its position (general approach) regarding amendments to the directive on administrative cooperation in the area of taxation. The amendments mainly concern the reporting and automatic exchange of information on revenues from transactions in crypto-assets and information on advance tax rulings for the wealthiest (high-net-worth) individuals. The aim is to strengthen the existing legislative framework by enlarging the scope for registration and reporting obligations and overall administrative cooperation of tax administrations. "Today we are strengthening the rules for administrative cooperation and closing loopholes that have previously been used to avoid taxation of income. This reduces the risk of crypto-assets being used as a safe haven for tax avoidance and tax fraud. The agreement is yet another example of the EU as a leader in the implementation of global standards." Elisabeth Svantesson, Minister for Finance of Sweden Additional categories of assets and income, such as crypto-assets, will now be covered. There will be a mandatory automatic exchange between tax authorities of information which will have to be provided by reporting crypto-asset service providers. So far, the decentralised nature of crypto-assets has made it difficult for member states’ tax administrations to ensure tax compliance. The inherent cross-border nature of crypto-assets requires strong international administrative cooperation to ensure effective tax collection. This directive covers a broad scope of crypto-assets, building on the definitions that are set out in the regulation on markets in crypto-assets (MiCA) which the Council adopts today. Also those crypto-assets that have been issued in a decentralised manner, as well as stablecoins, including e-money tokens and certain non-fungible tokens (NFTs), are included in the scope. Background On 27 November 2020, the Council approved conclusions “On fair and effective taxation in times of recovery, on tax challenges linked to digitalisation and on tax good governance in the EU and beyond.” The Council recognised that the rapid development and increasing worldwide use of alternative means of payment and investment – such as crypto-assets and e-money – may undermine the progress made on tax transparency in recent years and pose substantial risks of tax fraud, tax evasion and tax avoidance; and that it is important to discuss at technical level on how to update the rules on administrative cooperation within the EU and on a global level in order to address these potential risks. On 7 December 2021, the Council indicated in its report to the European Council on tax issues that it expects the European Commission to table in 2022 a legislative proposal on further revision of the Directive 2011/16/EU on administrative cooperation in the field of taxation (DAC), concerning exchange of information on crypto-assets and tax rulings for wealthy individuals. On 8 December 2022 the Commission presented a proposal for a Council directive amending directive 2011/16/EU on administrative cooperation in the field of taxation (DAC8). The key objectives of this legislative proposal are the following: to extend the scope of automatic exchange of information under DAC to information that will have to be reported by crypto-asset service providers on transactions (transfer or exchange) of crypto-assets and e-money. Expanding administrative cooperation to this new area is aimed at helping member states to address the challenges posed by the digitalisation of the economy. The provisions of DAC8 on due diligence procedures, reporting requirements and other rules applicable to reporting crypto-asset service providers will reflect the Crypto-Asset Reporting Framework (“CARF”) and a set of amendments to the Common Reporting Standard (“CRS”), which were prepared by the OECD under the mandate of the G20. The G20 endorsed the CARF and the amendments to CRS, both of which it considers to be integral additions to the global standards for automatic exchange of information to extend the scope of the current rules on exchange of tax-relevant information by including provisions on exchange of advance cross-border rulings concerning high-net-worth individuals, as well as provisions on automatic exchange of information on non-custodial dividends and similar revenues, in order to reduce the risks of tax evasion, tax avoidance and tax fraud, as the current provisions of DAC do not cover this type of income to amend a number of other existing provisions of DAC. In particular, the proposal seeks to improve the rules on reporting and communication of the Tax Identification Number (TIN), in order to facilitate the task of tax authorities of identifying the relevant taxpayers and correctly assessing the related taxes, and to amend DAC provisions on penalties that are to be applied by member states to persons for the failure of compliance with national legislation on reporting requirements adopted pursuant to DAC. Experts of the member states have since analysed the proposal. The Council Presidency has prioritised work on this proposal with the objective of reaching an agreement by the Ecofin Council at its May meeting. This directive is not subject to the ordinary legislative procedure but the consultation procedure. This means that the European Parliament may present its views but has no legislative power to make changes to the proposal. The final outcome of this legislative process is decided by member states in the Council, by unanimity. General approach on ‘DAC8’ Statement Commission proposal Agreement reached on amendments to the directive on administrative cooperation in the field of taxation ('DAC 7') – main results of the video conference of economic and finance ministers of 1 December 2020 Fair and effective taxation: Council adopts conclusions (press release, 27 November 2020) Taxation: Council agrees on the postponement of certain tax rules (press release, 24 June 2020) Taxation: Council approves conclusions on future administrative cooperation and excise duty on tobacco (press release, 2 June 2020) Press material Tuesday 16 May 2023   ● Council of the EU   16/05/2023 10:31 | Press release | Anti-money laundering: Council adopts rules which will make crypto-asset transfers traceable   The EU is making it more difficult for criminals to circumvent anti-money laundering rules via crypto currencies. Today the Council adopted updated rules on information accompanying the transfers of funds by extending the scope of the rules to transfers of crypto assets. This ensures financial transparency on exchanges in crypto-assets and provides the EU with a solid framework that complies with the most demanding international standards on the exchange of crypto-assets, ensuring that these are not used for criminal purposes. "Today’s decision is bad news for those who have misused crypto-assets for their illegal activities, to circumvent EU sanctions or to finance terrorism and war. Doing so will no longer be possible in Europe without exposure – it is an important step forward in the fight against money laundering." Elisabeth Svantesson, Minister for Finance of Sweden Under the new rules, crypto asset service providers are obliged to collect and make accessible certain information about the sender and beneficiary of the transfers of crypto assets they operate, regardless of the amount of crypto assets being transacted. This ensures the traceability of crypto-asset transfers in order to be able to better identify possible suspicious transactions and block them. Background This regulation is part of a package of legislative proposals to strengthen the EU's anti-money laundering and countering terrorism financing (AML/CFT) rules, presented by the Commission on 20 July 2021. The package also includes a proposal to create a new EU authority to fight money laundering. The Council agreed its position on the transfer of funds proposal on 1 December 2021. Trilogue negotiations started on 28 April 2022 and ended in a provisional agreement on 29 June. Today’s formal adoption is the final step in the legislative process. Regulation on information accompanying transfers of funds and certain crypto-assets (recast) Anti-money laundering: Provisional agreement reached on transparency of crypto asset transfers (press release, 29 June 2022) Fight against money laundering and terrorist financing (background information) Press material Tuesday 16 May 2023   ● Council of the EU   16/05/2023 10:34 | Press release | Digital finance: Council adopts new rules on markets in crypto-assets (MiCA)   The EU brings crypto-assets, crypto-assets issuers and crypto-asset service providers under a regulatory framework. Setting an EU level legal framework for this sector for the first time, the Council today adopted a regulation on markets in crypto-assets (MiCA). "I am very pleased that today we are delivering on our promise to start regulating the crypto-assets sector. Recent events have confirmed the urgent need for imposing rules which will better protect Europeans who have invested in these assets, and prevent the misuse of crypto industry for the purposes of money laundering and financing of terrorism." Elisabeth Svantesson, Minister for Finance of Sweden MiCA will protect investors by increasing transparency and putting in place a comprehensive framework for issuers and service providers including compliance with the anti-money laundering rules. The new rules cover issuers of utility tokens, asset referenced tokens and so-called ‘stablecoins’. It also covers service providers such as trading venues and the wallets where crypto-assets are held. This regulatory framework aims to protect investors, preserve financial stability, while allowing innovation and fostering the attractiveness of the crypto-asset sector. It also introduces a harmonized regulatory framework in the European Union which, given the global nature of crypto markets, is an improvement compared to the current situation with national legislation in some member states only. Background The European Commission presented the MiCA proposal on 24 September 2020. It is part of the larger digital finance package, which aims to develop a European approach that fosters technological development and ensures financial stability and consumer protection. In addition to the MiCA proposal, the package contains a digital finance strategy, a Digital Operational Resilience Act (DORA), that covers crypto-asset service providers as well, and a proposal on distributed ledger technology (DLT) pilot regime for wholesale uses. This package bridges a gap in existing EU legislation by ensuring that the current legal framework does not pose obstacles to the use of new digital financial instruments and, at the same time, ensures that such new technologies and products fall within the scope of financial regulation and operational risk management arrangements of firms active in the EU. Thus, the package aims to support innovation and the uptake of new financial technologies while providing for an appropriate level of consumer and investor protection. The Council adopted its negotiating mandate on MiCA on 24 November 2021. Trilogues between the co-legislators started on 31 March 2022 and ended in a provisional agreement reached on 30 June 2022. Today’s formal adoption of the regulation is the final step in the legislative process. Regulation on markets in crypto-assets (MiCA) Digital finance: agreement reached on European crypto-assets regulation (MiCA) (press release, 30 June 2022) Digital finance (background) Meetings Monday 15 May 2023   ● Council of the EU   15/05/2023 19:32 | MEETING | Main results - Education, Youth, Culture and Sport Council, 15-16 May 2023   Ministers for youth and sport met in Brussels to discuss the inclusion of young people in EU societies, the social dimension of a sustainable Europe for youth, and respect for human rights in international sporting events. Council of the EU Education, Youth, Culture and Sport Council, 15-16 May 2023 Main results Youth and Sport (Monday 15 May) Youth and sport ministers met in Brussels to discuss the social inclusion of young people in Europe and respect for human rights in international sporting events. They also approved conclusions on the social dimension of a sustainable Europe for youth, as well as resolutions on the outcomes of the 9th cycle of the EU Youth Dialogue (EUYD), the revision of the EU Youth Strategy work plan for 2022-2024, and the representation of EU member states in the World Anti-Doping Agency (WADA). Respect for human rights in international sports events Sports ministers discussed the need to ensure respect for human rights in the organisation of major international sporting events. Ministers stressed the need for good governance in sport and discussed ways to strengthen transparency and respect for human rights in the awarding and running of international sporting events, as well as in the activities of national, European and other international sports organisations, in line with the United Nations’ guiding principles. Many ministers highlighted actions being taken in their own countries to protect human rights and combat discrimination more broadly, including by supporting female and LGBT athletes. International sports events should represent the very best of human values: integrity, mutual respect and a sense of community and fair play. We must fight at all cost any attacks on these principles, whether in the form of corruption, illegal doping, ‘sportswashing’ or violations of human rights.Jakob Forssmed, Swedish Minister for Social Affairs and Public Health During the discussion, ministers drew attention to the recently published 4th statement addressed to the International Olympic Committee, which states that Russia must not be allowed to use sport to legitimise its invasion of Ukraine. A number of ministers took the floor to express solidarity for Ukraine and emphasise their strong opposition to the participation of Russian and Belarusian athletes in major international sports events such as the upcoming Paris Olympic and Paralympic Games. The Ukrainian Deputy Minister for Youth and Sports, Andriy Chesnokov, and Council of Europe Executive Secretary of EPAS and Head of the Sport Division, Sophie Kwasny, took part in the discussion.Ensuring respect for human rights in the organisation of major international sporting events – information from the presidency Watch public session Infographic - Refugees from Ukraine in the EUSee full infographic Inclusion of young people in EU societies The Council held a policy debate on the need to promote the inclusion of young people in EU societies, with a focus on young Ukrainians. Ministers exchanged views on ways to address the heterogeneity of ‘young people’ as a group when formulating policies that affect them. They highlighted many of the challenges facing young people today and discussed ways to help them overcome these obstacles, in line with the recommendations emerging from the EU Youth Dialogue, while also stressing the importance of EU programmes such as Erasmus+ and the European Solidarity Corps. They also shared the measures that are already been taken in their countries to support young people, including young Ukrainians who are temporarily displaced. Ukraine’s Deputy Minister for Youth and Sports, Andriy Chesnokov, took part in the discussion. Mr Chesnokov noted that around 40% of young Ukrainians are currently displaced, with many of them currently benefitting from temporary protection in the EU, and set out Ukraine’s priorities for cooperation with the EU on youth policy. The Council also heard messages from some of the delegates who took part in the EU Youth Conference in Växjö on 20-22 March. Ministers also approved conclusions on the social dimension of a sustainable Europe for young people, in which it argued that the EU should do more to get young people involved in developing policy for a sustainable future and highlighted their role as key players in implementing the 2030 Agenda for Sustainable Development.Ensuring the inclusion of young people in EU societies: Focusing on inclusion of young Ukrainians – information from the presidency Involving young people in a sustainable future for Europe (press release, 15 May 2023) Watch public session EU Youth Strategy During the youth session, ministers approved a resolution to ensure that the outcomes of the 9th cycle of the EU Youth Dialogue are recognised and followed-up by relevant stakeholders. They also approved a resolution on the revision of the EU Youth Strategy Work Plan 2022-2024.9th cycle of the EU Youth Dialogue EU Youth Strategy Work Plan 2022-2024 World Anti-Doping Agency (WADA) Ministers for sport approved a resolution reviewing the representation of EU member states in the World Anti-Doping Agency (WADA) and coordination of WADA’s activities. The aim of the review is to facilitate the process of designating and replacing EU representatives at WADA meetings. In particular, the Council’s resolution updates the procedure for selecting the EU’s representatives on WADA’s Foundation Board.Resolution on the World Anti-Doping Agency (WADA) Other business A number of items were covered under ‘other business’, including the outcome of the discussion at the informal EU Youth Dialogue breakfast, the Macolin Convention, and the European dimension of the 2024 Olympic and Paralympic Games. The Council adopted without discussion the items on the list of non-legislative A items.France deposits its national ratification instrument of the Convention on the Manipulation of Sports Competitions (the Macolin Convention) – information from the French delegation The European dimension of the 2024 Olympic and Paralympic Games – information from the French delegation Culture, audiovisual and education (Tuesday 16 May) On Tuesday the Council turned its attention to issues concerning culture, media and education. The morning session was devoted to a discussion on the state of play of the European Media Freedom Act, while in the afternoon the focus shifted to the importance of reading for social inclusion and quality of life. Ministers also approved conclusions on at-risk and displaced artists and the automatic mutual recognition of education and training qualifications, as well as a resolution on the European Education Area: Looking to 2025 and beyond. The importance of reading Ministers held a policy debate on the importance of reading for learning, equity and active participation in society. They acknowledged the critical role that reading plays in many aspects of life, including education, work, and integration into society, as well as its impact on quality of life. They also stressed that reading is a key factor in achieving an inclusive European Education Area by 2025. A number of ministers took the floor to present measures being taken in their countries to encourage children and young people to read. These included fostering a love of reading from an early age, ensuring access to libraries, and focusing on teacher training. They also noted the challenges presented by aspects such as the digital transition and the need to recognise the importance of physical books, the issue of gender differences in reading abilities and the specific challenges for children with a migrant background. When a child starts to read, the doors of the entire universe open to them. Instilling a love of reading at an early age means planting a seed that will bear fruit later when those children become active citizens who are able to exercise their democratic rights.Lotta Edholm, Swedish Minister for Schools Prior to the start of the discussion, the Council invited Dr Dirk Hastedt, executive director of the International Association for the Evaluation of Educational Achievement, to present the results of the 2021 Progress in International Reading Literacy Study (PIRLS), and a number of member states took the opportunity to reflect on the findings of this study.Results of PIRLS 2021 Watch the public session European Media Freedom Act The Council held a policy debate on the proposed European Media Freedom Act (EMFA) on the basis of a progress report and a background note prepared by the presidency. Ministers expressed their views on the parts of the proposal they saw as key in strengthening the media sector and helping journalists exercise their activities independently. These included safeguarding the independence of the proposed European board for media services, taking into account the fast-paced change in the digital sector, and ensuring that journalists’ sources are protected. A number of member states addressed the links between the EMFA proposal and other EU instruments and legislation, including the new regulatory framework for digital markets and services and existing rule of law provisions. Ministers also discussed key issues that still need to be resolved before an overall agreement can be reached within the Council, including the balance between national security requirements and the need to protect journalists and their sources, better reflecting the specificities of member states, and avoiding any excessive administrative burden. A number of ministers took the floor to stress their continued commitment to guaranteeing media pluralism and ensuring the protection of journalists as part of a well-functioning democratic society.European Media Freedom Act (EMFA) – progress report Background paper to the policy debate Commission proposal COM (2022) 457 final Watch public session Media freedom in the EU (background information) At-risk and displaced artists The Council approved conclusions on at-risk and displaced artists, in which it notes the crucial role that artists play in the life, development and resilience of societies and individuals, and argues that they should be able to do so while also preserving their creativity and freedom of expression. The conclusions stress the need to protect and support these against any form of threats or violations that put them in danger as a result of their artistic work. Examples of measures that could be taken to protect artists include ‘cities of refuge’, emergency artistic residencies, and efforts to promote their integration into local communities.Council conclusions on at-risk and displaced artists European Education Area Ministers approved a resolution on the European Education Area: Looking to 2025 and beyond. The Council’s resolution responds to the progress report published by the Commission in November 2022. The Council also approved conclusions on further steps to make automatic mutual recognition in education and training a reality. The conclusions evaluate the findings of the Commission’s report and propose a number of steps to help make automatic mutual recognition in education and training a reality. They stress that achieving such recognition depends on member states working together to foster mutual trust and transparency.Council resolution on the European Education Area: Looking to 2025 and beyond Council conclusions on further steps to make automatic mutual recognition in education and training a reality European Education Area (background information) Other business A number of items were covered under ‘other business’, including support for Ukrainian cultural and creative sectors, public libraries and Ukrainian refugees, and the designation of Évora as European Capital of Culture 2027 (for a full list of ‘other business’ items, see the background brief).Support to Ukrainian Cultural and Creative Sectors – information from the presidency Designation of Évora as European Capital of Culture 2027 – information from the Portuguese delegation Public libraries and Ukrainian refugees – information from the German delegation Meeting information Meeting n°3947 Brussels 15-16 May 2023 Preparatory documentsBackground brief Provisional agenda List of A items, non-legislative activities Outcome documentsList of participants List of participants Press material Tuesday 16 May 2023   ● Council of the EU   16/05/2023 10:35 | Press release | Council adopts new rules to cut deforestation worldwide   Today, the Council gave the final go-ahead to a regulation that aims to minimise the risk of deforestation and forest degradation associated with products that are placed on or exported from the EU market. The EU is a large consumer and trader of commodities and products that play a substantial part in deforestation. The new rules aim to ensure that the EU’s consumption and trade of these commodities and products don't contribute to deforestation and further degrading forest ecosystems. Due diligence The regulation 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, cattle, wood, 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). Operators will be required to trace the commodities they are selling back to the plot of land where they were produced. At the same time, the new rules aim to avoid duplication of obligations and reduce administrative burden for operators and authorities. There is also a possibility for small operators to rely on larger operators to prepare due diligence declarations. The regulation sets a cut-off date for the new rules on 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 EU market or to be exported from the EU. Checks on products The regulation creates a benchmarking system, which assigns a level of risk related to deforestation and forest degradation (low, standard or high) to countries within and outside the EU. The risk category will determine the level of specific obligations for operators and member states’ authorities to carry out inspections and controls. This will facilitate an enhanced monitoring for high-risk countries and simplified due diligence for low-risk countries. Competent authorities will have to carry out checks on 9% of operators and traders trading products from high-risk countries, 3% from 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 relevant commodities and products placed, made available on, or exported from their market by high-risk countries. The EU will enhance the cooperation with partner countries, in particular those classified as high risk. Human rights aspects The new rules also take into account the protection of human rights related to deforestation and a reference was added to the principle of free prior and informed consent of indigenous peoples. Dissuasive penalties The regulation includes provisions on penalties, which member states should ensure are effective, proportionate and dissuasive. 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. Press material Tuesday 16 May 2023   ● Council of the EU   16/05/2023 18:11 | Press release | New Heads of Mission appointed for EUCAP Sahel Niger and EUAM Ukraine   The Council appointed today new Heads of Mission (HoM) for two EU’s civilian missions: the EU Capacity Building Mission in Niger (EUCAP Sahel Niger) and the EU Advisory Mission for Civilian Security Sector Reform Ukraine (EUAM Ukraine). Katja Dominik was appointed as Head of Mission of EUCAP Sahel Niger until 30 September 2024. She is a German citizen, currently serving as Deputy Head of Mission and Chief of Staff of the EU Police and Rule of Law Mission for the occupied Palestinian Territory (EUPOL COPPS). The appointment starts with immediate effect. Biography of Katja Dominik As regards EUAM Ukraine, the Council appointed Rolf M. Hay Pereira Holmboe as Head of Mission from 1 June 2023 to 31 May 2024. Rolf Holmboe currently serves as Denmark’s ambassador to Mali, after being posted in Pakistan, Lebanon and Syria. Biography of Rolf M. Hay Pereira Holmboe The decision to appoint Mr Holmboe and Ms Dominik was taken by the Political and Security Committee.