COUNCIL OF THE EUROPEAN UNION,EUROGROUP,update

 

Press material Wednesday, 19 February 2025

● Council of the EU   19/02/2025 03:35 | Press release | Council and Parliament agree to reduce food waste and set new rules on waste textile   Today, the Council presidency and European Parliament representatives reached a provisional agreement on the targeted revision of the waste framework directive, setting EU targets for food waste reduction by 2030 and measures towards a more sustainable and less waste-producing textile sector. The agreement still needs to be confirmed by both institutions before going through the formal adoption procedure. Less food waste by 2030 The two co-legislators agreed on ambitious yet realistic targets on food waste by 2030: reduction by 10% in processing and manufacturing waste compared to the average amount of food waste generated in these sectors in 2021-2023 reduction by 30% per capita in waste from retail, restaurants, food services and households compared to the average amount of food waste generated in these sectors in 2021-2023 Those targets are the first-ever to be established at EU level. The agreement also provides for the voluntary donation of unsold food that is safe for human consumption as an important aspect of reducing food waste. New rules on waste textile The provisional agreement establishes harmonised rules on the extended producer responsibility of textile producers and fashion brands: they will be made responsible for their waste and will be required to pay a fee to help fund waste collection and treatment, which will be dependent on how circular and sustainable the design of their product is. Co-legislators agreed to address overgeneration of waste textile and ultra-fast and fast fashion practices, to prevent discarding of textile products before they reach their potential lifetime. Member states may adapt fees paid by producers according to the length of use of textile products and their durability. The provisional agreement provides for a level playing field, including all companies in the scope of extended producer responsibility schemes. Under this harmonised framework, all companies, including smaller ones, would have access to necessary resources and infrastructure for proper waste textile treatment. To reduce administrative burden, microenterprises will have one additional year to comply with these obligations after the extended producer responsibility schemes are established (in total, 3.5 years after the entry into force of the new rules). “Today’s agreement on waste textile marks a significant step towards a robust, circular, and competitive EU economy, while upholding the polluter pays principle. Additionally, the EU is for the first time setting ambitious food waste reduction targets, for more sustainable food systems in the EU.” — Paulina Hennig-Kloska, Polish Minister for Climate and Environment Next steps The provisional agreement was reached by the Council’s Presidency and the representatives of the European Parliament, based on mandates from their respective institutions. The provisional agreement will now have to be endorsed by the Council and the Parliament before undergoing legal linguistic revision. Once formally adopted, EU member states will have up to 20 months to update their national laws to follow the new rules. The Commission will be tasked with reviewing and assessing several aspects of the waste framework directive. Those include the financing of the extended producer responsibility schemes and possible targets concerning textile waste (by 2029) as well as the role of primary production in food waste, the impact of changes in production levels and possible updated targets on food waste reduction for 2030 and 2035 (by 2027). Background Over 59 million tonnes of food waste are generated in the EU each year, representing an estimated loss of €132 billion. The EU also generates 12.6 million tonnes of waste textile per year. Clothing and footwear alone account for 5.2 million tonnes of waste, equivalent to 12 kg of waste per person every year. Waste framework directive: Council set to start talks on its revision (press release, 17 June 2024) Reducing food loss and food waste (background information) • Council of the EU ­ 18/02/2025 | Press release | Presidency press release - On 18 February, the General Affairs Council (GAC) convened at the Warsaw Citadel to address EU security in the context of enlargement, the multiannual budget, and Member States’ democratic resilience  in the face of populism, disinformation, and political crises. The meeting was chaired by Minister for the European Union Adam Szłapka. The informal meeting was attended by European affairs ministers from all 27 EU Member States and representatives of candidate countries. Also present were European Commissioners: Marta Kos (Enlargement) and Piotr Serafin (Budget). Read the presidency press release in EN. Further information   media.communication@kprm.gov.pl Polish presidency website

● Council of the EU

18/02/2025 17:09 | Meetings | Main results - Economic and Financial Affairs Council, 18 February 2025   Ministers held a policy debate on competitiveness and regulatory burden reduction, and the Commission presented the Competitiveness Compass initiative. Ministers took note of the state of play of the economic and financial impact of Russia’s aggression against Ukraine. The Council approved its guidelines for the EU’s annual budget for 2026. It also adopted conclusions on the Alert Mechanism Report 2025 and agreed on the 2025 recommendation on the economic policy of the euro area. The Council adopted recommendations regarding Hungary's medium-term fiscal-structural plan and excessive deficit situation. It also approved modified recovery and resilience plans submitted by Belgium and Lithuania. Additionally, the Council adopted a revised EU list of non-cooperative jurisdictions in the field of taxation.

● Council of the EU

18/02/2025 17:06 | Press release | EU annual budget 2026: Council sets guidelines for next year's EU budget   The Council today approved conclusions setting guidelines for the EU’s annual budget for 2026. The guidelines provide political steer to the Commission in preparing the draft budget proposal for next year’s budget. In its conclusions, the Council underlines that the EU budget for 2026 has a key role in the development and delivery of the long-term objectives and political priorities agreed by the EU. The Council reconfirms that the EU remains committed to providing continued financial support for Ukraine, for as long as it takes and as intensely as needed, and supporting its resilience and long-term reconstruction. The Council stresses the importance for the budget for 2026 to continue showing the Union’s solidarity with the people of Ukraine and to respond to the related crises. The Council considers that the budget for 2026 should be realistic, in line with actual needs, ensure prudent budgeting and leave sufficient margins under the multiannual financial framework (MFF) ceilings to deal with unforeseen circumstances and address the Union’s challenges.   At the same time, the budget for 2026 should provide sufficient resources to ensure the implementation of Union programmes, including the implementation of the Regional Emergency Support to Reconstruction (RESTORE).   The Council stresses the need for the Commission to identify in the draft budget for 2026 the redeployments agreed in the revised MFF that are necessary to finance the priorities laid down in the revised MFF 2021-2027. The Council also calls on the Commission to take into account and reflect in the draft budget for 2026 all the priorities commonly agreed in the revised MFF, including migration. The Council invites the Commission to take into account the agreement on the 2025 budget, with regard to the resources to be used for NextGenerationEU interest payments in case they cannot be covered by the existing budget line. Budget guidelines for 2026 Budget (background information) ● Council of the EU   18/02/2025 14:48 | Press release | Council sets fiscal expenditure path for Hungary and adopts recommendation to correct its excessive deficit situation   In the context of the implementation of the EU’s new economic governance rules, the Council endorsed Hungary’s medium-term fiscal-structural plan and set its net expenditure path. The Council also recommends that Hungary should put an end to the excessive deficit situation by 2026. Hungary should ensure that the nominal growth rate of net expenditure does not exceed 4.3% in 2025 and 4.0% in 2026. This is in line with Hungary’s objectives, expressed in its medium-term fiscal-structural plan. Now that the Council has adopted its recommendations, Hungary has certainty as regards the budgetary path it will follow in the upcoming years, and can plan accordingly. Background Under the new economic governance framework, in force since 30 April 2024, member states are asked to submit national medium-term fiscal-structural plans which cover 4 to 5 years. The plans are a cornerstone of the new economic governance framework. They aim to ensure that by the end of the adjustment period, general government debt is on a plausibly downward trajectory, or stays at prudent levels, and that the government deficit is kept below or brought and maintained below the reference value of 3% of GDP over the medium term. The plans also lay out reforms and investments responding to the main challenges identified in the context of the European Semester and addressing the common priorities of the EU. To that end, each plan includes a commitment to a net expenditure path, which effectively establishes a budgetary constraint for the duration of the plan. Based on an assessment of the plan by the Commission, the Council adopts a recommendation in which it sets the net expenditure path of the member state concerned. If an excessive deficit occurs in a member state, the aim of the excessive deficit procedure is to prompt its correction by putting the member state under enhanced scrutiny and providing a recommendation for it to take effective action to correct the deficit. Ultimately, the goal is to strengthen member states’ debt sustainability. Member states must comply with budgetary discipline on the basis of criteria and reference values set in the EU Treaties: their deficit should not exceed 3% of their gross domestic product (GDP) and their debt should not exceed 60% of their GDP. All member states have to respect these Treaty reference values. Under the new economic governance framework, once an excessive deficit procedure has been launched, the Council shall make a recommendation to the member state concerned to take effective action to bring the situation of excessive deficit to an end within a set deadline. Council recommendation endorsing the national medium-term fiscal-structural plan of Hungary Council recommendation with a view to bringing an end to the situation of an excessive deficit in Hungary Economic governance framework (background information) Excessive deficit procedure (background information) ● Council of the EU   18/02/2025 14:07 | Press release | Recovery and resilience fund: Council greenlights the amended plans of Latvia and Belgium   The Council today approved the Commission’s positive assessment of the amended recovery and resilience plans submitted by Latvia and Belgium. According to the analysis of the Commission, the targeted modifications do not affect the relevance, effectiveness, efficiency and coherence of their recovery and resilience plans. Latvia On 18 December 2024, Latvia submitted targeted amendments to its recovery and resilience plan. Latvia has explained that 28 measures have been amended to implement better alternatives in order to achieve the original ambition of the measures. The plan is worth € 1.97 billion in grants. Belgium On 7 January 2025, Belgium submitted targeted amendments to its recovery and resilience plan. Belgium has explained that one measure concerning the digitalisation of public administration has been amended in order to implement a better alternative that allows for the reduction of the administrative burden while still achieving the objectives of that measure. The plan is worth € 5.28 billion in grants and loans. Background The RRF is the EU’s large-scale financial support programme in response to the challenges the COVID-19 pandemic has posed to the European economy. It is the centrepiece of NextGenerationEU, a temporary recovery instrument that allows the Commission to raise funds to help repair the immediate economic and social damage caused by the pandemic. To benefit from the facility, member states must submit recovery and resilience plans (RRPs) to the Commission, setting out the reforms and investments they intend to implement by the end of August 2026. To date, all RRPs have been approved, 86 payment requests have been received and more than €306 billion have been disbursed. Council implementing decision approving the assessment of the recovery and resilience plan for Latvia Council implementing decision approving the assessment of the recovery and resilience plan for Belgium A recovery plan for Europe (background information) ● Council of the EU   18/02/2025 13:28 | Press release | Zimbabwe: Council renews restrictive measures framework and delists one entity   The Council today renewed its framework for restrictive measures in view of the situation in Zimbabwe for a further year, until 20 February 2026. The Council also delisted the last remaining entity, the Zimbabwe Defence Industries. The embargo on arms and equipment which might be used for internal repression remains in place. The EU continues to closely follow developments in Zimbabwe, with a particular attention to the human rights situation, and recalls its readiness to adapt the whole range of its policies accordingly. Background On 15 February 2011, the Council adopted Decision 2011/101/CFSP concerning restrictive measures in view of the situation in Zimbabwe. The remaining restrictive measures in place do not affect the people of Zimbabwe, its economy, foreign direct investments, or trade. EU Delegation to Zimbabwe ● Council of the EU   18/02/2025 13:04 | Press release | Taxation: member states update EU list of non-cooperative tax jurisdictions   Today, the Council confirmed the EU list of non-cooperative jurisdictions for tax purposes without changes. The list consists of the same 11 jurisdictions as before: Although this round of the update features positive developments, the Council regrets that these jurisdictions are not yet fully cooperative on tax matters and invites them to improve their legal framework in order to resolve the identified issues. State of play document (Annex II) In addition to the list of non-cooperative tax jurisdictions, the Council approved the usual state of play document (Annex II) which reflects the ongoing EU cooperation with its international partners and the commitments of these countries to reform their legislation to adhere to agreed tax good governance standards. Its purpose is to recognise ongoing constructive work in the field of taxation, and to encourage the positive approach taken by cooperative jurisdictions to implement tax good governance principles. Two jurisdictions, Costa Rica and Curaçao, fulfilled their commitments by amending a harmful tax regime, and will be removed from the state of play document. Brunei Darussalam on the other hand made a commitment to amend or abolish its foreign-source income exemption regime before the end of next year, and this commitment will be included in the state of play. Background The EU list of non-cooperative jurisdictions for tax purposes was established in December 2017. It is part of the EU’s external strategy on taxation and aims to contribute to ongoing efforts to promote tax good governance worldwide. Jurisdictions are assessed on the basis of a set of criteria laid down by the Council. These criteria cover tax transparency, fair taxation and implementation of international standards designed to prevent tax base erosion and profit shifting. The chair of the code of conduct group conducts political and procedural dialogues with relevant international organisations and jurisdictions, where necessary. Work on the list is a dynamic process. Since 2020, the Council updates the list twice a year. The next revision of the list is scheduled for October 2025. The list is set out in Annex I of the Council conclusions on the EU list of non-cooperative jurisdictions for tax purposes. The conclusions also include a state-of-play document (Annex II) identifying cooperative jurisdictions which have made further improvements to their tax policies or related cooperation. The Council’s decisions regarding the list are prepared by the Council's code of conduct group which is also responsible for monitoring tax measures in the EU member states.The code of conduct group is cooperating closely with international bodies such as the OECD Forum on Harmful Tax Practices (FHTP) to promote tax good governance worldwide. Council conclusions on the revised EU list of non-cooperative jurisdictions for tax purposes EU list of non-cooperative jurisdictions (background information) Code of Conduct Group (Business Taxation)   ● General Secretariat of the Council   18/02/2025 12:46 | Press release | New Director-General for Agriculture, Fisheries, Social affairs and Health appointed in the Council’s General Secretariat   Today, the Council has appointed David Brozina as the new Director-General of the Directorate-General for Agriculture, Fisheries, Social Affairs and Health (DG LIFE). He will assume his new role as from 1 April 2025. A Slovenian national, David Brozina currently serves as Ambassador, Deputy Permanent Representative of Slovenia to the EU. Mr Brozina has held several diplomatic positions in his career, gaining extensive experience in European affairs. From 2002 to 2005, he served as Antici Counsellor at the Slovenian Permanent Representation to the EU. Between 2011 and 2015, he was Deputy Head of Mission at the Slovenian Embassy in Bosnia and Herzegovina. From 2015 to 2019 he was Director - General for EU Affairs at the Ministry of Foreign and European Affairs in Ljubljana, overseeing EU coordination, institutional matters, and bilateral relations with EU Member States. He then served as Head of Administration at Slovenia’s Permanent Representation to the EU (2020–2022) before assuming his current role as Deputy Permanent Representative. Biography of David Brozina DG LIFE assists the Council’s work in its two configurations ‘Agriculture/Fisheries’ and  'Employment, Social Policy, Health and Consumer Affairs’. DG LIFE also assists the work of the President of the European Council. David Brozina succeeds Cesare Onestini who has taken on the role of Director-General for Organisational Development and Services (DG ORG) within the Council’s General Secretariat. ● Council of the EU   18/02/2025 11:25 | Press release | Nuclear materials: EU updates rules for a better supervisory system   Today, the Council signed off on a revised regulation on the application of Euratom safeguards, the nuclear materials supervision system within the Euratom Community which guarantees the peaceful use of nuclear materials. The new rules aim to simplify Euratom safeguards and align them with technological progress. The regulation on the application Euratom safeguards lays down the specific information to be declared to the Commission by users of nuclear materials, as well as the records that operators are obliged to keep. These measures allow the Commission to verify that nuclear materials are not diverted from their intended use. An in-depth evaluation in 2022 highlighted the need for a targeted revision of the regulation, since its effectiveness has gradually decreased, largely due to technological progress and to developments in the nuclear sector. The key changes introduced by this targeted revision are limited in scope and focus on the following: Clarification, simplification and reduction of the administrative burden, including a more graded approach to reporting requirements based on the strategic value of materials, rules on installations holding small amounts of nuclear materials and on electronic reporting Alignment with technological progress and developments in the nuclear sector, such as introducing nuclear safeguarding measures early on in the planning and design of installations (safeguards-by-design), and rules on the disposal of spent fuel and radioactive waste Next steps The new rules will enter into force 20 days after the publication of the regulation in the Official Journal of the EU and will be directly applicable in all member states. The Commission will prepare guidelines to help operators comply with their obligations under the new rules and will evaluate their application 10 years after their entry into force. Background The Treaty on the European Atomic Energy Community (Euratom), in force since 1958, establishes a system for supervising the peaceful use of nuclear materials intended for civilian use (Euratom safeguards). In accordance with its provisions, the Commission must ensure that civilian nuclear materials are not diverted from their intended uses. On 21 December 2023, the Commission submitted a proposal for a Council decision approving a Commission regulation (Euratom) on the application of Euratom safeguards, as provided for in Euratom’s rules. After extensive discussions, the Council reached a political agreement on 24 June 2024, followed by the legal and linguistic review of the rules and today’s formal adoption, which marks the end of the procedure. Council decision approving a Commission regulation on the application of Euratom safeguards The Euratom Treaty Council/Commission statement   ● Council of the EU   18/02/2025 11:22 | Press release | Taxation: Council adopts new electronic VAT exemption certificate to replace paper forms   The Council formally adopted today new rules aimed at replacing the current paper certificates used to declare exemptions from the EU’s value added tax (VAT) with a new electronic form. “Today, we are taking another step to simplify and digitalise our VAT systems. The  certificate in its new form will substantially cut red tape.” — Andrzej Domański, Polish Minister for Finance Paper certificates, used when goods are exempt from VAT, will be replaced by an electronic form. This will simplify and streamline the process for companies and administrations when these goods are imported for embassies, international organisations, or armed forces. The new measures will come into force on 1 July 2031 with a further transition period of one year during which member states will be able to use both electronic and paper. The necessary IT specifications will be discussed in expert groups and determined through Commission implementing acts. Background On 8 July 2024, the Commission published two proposals aimed at replacing the current paper VAT exemption certificate with an electronic VAT exemption certificate: A proposal for a Council Directive amending Directive 2006/112/EC regarding the electronic value-added tax exemption certificate (the Council Directive). A proposal for a Council Implementing Regulation amending Implementing Regulation (EU) No 282/2011 regarding the electronic value-added tax exemption certificate (the Council Implementing Regulation). The VAT Directive creates the legal conditions for the Commission to develop the electronic certificate through implementing measures, while the Implementing Regulation provides for the alternative use of both paper and electronic certificates during the transition phase. The Council today adopted both of these legislative acts. The European Parliament was consulted on the proposal for a directive and delivered its opinion on 13 November 2024. Council directive as regards the electronic value added tax exemption certificate Council implementing regulation as regards the electronic value added tax exemption certificate Taxation: Council agrees on VAT in the digital age package (press release, 5 November 2024) Digital taxation (background information) Taxation (background information) ● Eurogroup   17/02/2025 20:33 | Statements and remarks | Remarks by Paschal Donohoe following the Eurogroup meeting of 17 February 2025   We began our February Eurogroup meeting by welcoming the Bulgarian Minister for Finance, Temenuzhka Petkova, who updated us on Bulgaria's progress towards fulfilling the criteria to adopt the euro. We appreciate Bulgaria’s ongoing efforts and its commitment to economic stability and convergence with the euro area. We continue to monitor its progress towards the objective of joining the euro area. Once Bulgaria considers it is ready to submit a request for ad hoc convergence reports to the Commission and the ECB, it will be for the institutions to assess whether all the criteria to guarantee a successful integration into the euro area are fulfilled. In the meantime, the Eurogroup is supportive of Bulgaria's ambition on its path towards the introduction of the euro at the appropriate time. We then turned to a discussion on economic developments and prospects for the euro area in a rapidly evolving global landscape. We get questions every day about announcements from other countries and what they mean for the euro area. I can understand this interest and the need for answers. The institutions today presented us with their analysis and views and we had a very useful exchange. The discussion today confirmed the clear determination of all members of the euro area to remain united on the issues at hand. We remembered that we've already steered through several crises and come out stronger. Parts of our economy are still adjusting to the energy shock, but fundamentally, we have been more resilient than many would have expected. We outlined today the work that we need to do. We recommitted ourselves to familiar projects. We acknowledged the strength of what is there within the euro area at the moment - the credible policies to bring down inflation, deficits and debt. A diversified economy with a rich structure of firms that have established global value chains, skilled workers, quality infrastructure, a knowledge economy, high savings rates, and a stable and well regulated financial sector. Yes, there are concerns. There is work to do, but we are very clearly a strong link in the world economy. On the subject of further work to do, our next item was on the recommendation on the economic policy of the euro area for 2025, which sets out three priority areas where euro area member states and the Eurogroup will be taking action. I'm pleased to announce that the Eurogroup agreed to this recommendation, based on the proposal of the Commission. In the current complex economic environment, the euro area recommendation is as relevant as ever, in particular where it relates to competitiveness, resilience and macroeconomic and financial stability. The annual euro area recommendation holds significant political weight, but past recommendations have not always been used to the full potential. So there was agreement amongst ministers on making enhanced use of the recommendation through more structured, more effective and more consistent follow up, particularly in shaping the future Eurogroup's competitiveness agenda. We also adopted our work programme until July, which is about putting into practice the policy priorities that we discussed in January and February. Ultimately, we're here to deliver results for our economies, for our citizens, and to navigate through choppy waters. The work programme focussed on five priority policy areas: budget coordination; keeping up the momentum of capital markets union; progressing with the banking union; competitiveness with the objective of building on our work from last year and focussing notably on productivity; and finally a common currency, notably the digital euro project and the international role of the euro, which comes into fresh focus in a fast-evolving geopolitical landscape. This is all reflected in the work programme we just issued, which I encourage you to consider. We then finished with a presentation of the policy priorities of the new governments of Belgium and of my own country, Ireland, which brought our meeting to a close. 18/02/2025 | Article European affairs ministers met in Warsaw to discuss security, competitiveness, and democratic resilience On 18 February, the General Affairs Council (GAC) convened at the Warsaw Citadel to address EU security in the context of enlargement, the multiannual budget, and Member States’ democratic resilience resilience in the face of populism, disinformation, and political crises. The meeting was chaired by Minister for the European Union Adam Szłapka. ● General Secretariat of the Council   Think Tank Review - February 2025   Reform the EU for a better Europe; the impacts of Ukraine's accession to the EU on the EU,  the digital euro project, the geopolitics of gas between the Baltic and the Balkans, the Trump presidency and its “America first” doctrine from the EU’s perspective, President Trump’s proposals for Greenland, the EU-MERCOSUR agreement and what it means, and a strong EU defence union are some of the topics dealt with in the February Think Tank Review.