EUROGROUP,COUNCIL OF THE EU,update

 

Press material Tuesday, 11 March 2025

● European Council   11/03/2025 11:05 | Speech | Report by President António Costa to the European Parliament plenary session   The European Union is living a defining moment. The sense of urgency is upon us. Geopolitical tensions have risen over the last weeks. Multilateralism is under enormous pressure, and so is the rules-based international order. Russia’s war of aggression against Ukraine entered its third year and the threat it represents has wider implications for Europe and international security.  This is exactly why last week the European Council took fast and ambitious decisions on defence and Ukraine. We are putting our money where our mouth is. We are delivering on what we promised. Three years ago precisely today, in Versailles, we decided to boost Europe’s defence, to build the Europe of Defence. Three years ago, we laid the foundation of what we decided last week. Over the last three years, Member States increased their defence spending by 30%. Over the last three years, on average, among the 23 EU Member States that are in NATO for 2024, we reached the NATO target of two percent of GDP. Now we are going much further. In one month, working hand in hand with the European Commission, we have kick-started the Europe of Defence. On 3 February, at the informal Leaders’ meeting, with the special participation of the British Prime Minister and the Secretary General of NATO, we opened the way for decisions. Last week, the Commission anticipated some of its proposals on defence financing, which were the basis for European Council’s decisions. In the Special European Council, we decided to invest in the priority areas already defined by the European Defence Agency, reflecting the lessons learnt from the war in Ukraine, and in full coherence with NATO. Air and missile defence. Artillery systems. Missiles and ammunition. Drones and anti-drone systems. Strategic enablers. Military mobility. Artificial intelligence, cyber and electronic warfare. We have also decided to mobilise more public and private funds for our defence. We welcomed the Commission’s initiative to dedicate 150 billion euros of additional defence spending to funding the capabilities we urgently need. In addition to the loan instrument proposed by the Commission, Leaders were clear that we need flexibility within the Stability and Growth Pact and  the use of European funds will also be important to provide more public money for the defence sector, where Member States decide to do so. The European Investment Bank initiative to broaden its mandate – for more loans to the defence sector – will improve access to private financing. Finally, we decided to spend better and more efficiently together. With joint procurement, ensuring standardisation and simplifying permitting and reporting requirements. Our focus is clear. Next week, the Commission and the High Representative will present the White Paper on Defence and the European Council will continue to take the work forward. To build our deterrence. To strengthen the security of our continent. Competitiveness and defence must go hand in hand. To boost Europe’s industrial and technological competitiveness. To create jobs, reinforcing economic convergence and the resilience of our values-chains networks. It is the right way to make the European Union stronger, it is the right way to protect our citizens and our social model. (pronounced in French) The efforts we undertake to spend more on European defence will also benefit Ukraine. Ukraine’s security cannot be separated from Europe’s security. The best security guarantee we can provide is to strengthen Ukraine’s self-defence and to build a credible and robust Europe of Defence. We have been with Ukraine since day one. We have already provided more than 135 billion euros in support to Ukraine since 2022. And we have now committed to increasing our support even more. Immediately, member states can increase their support thanks to the increased fiscal space. Several member states have already announced their pledges up to additional 15 billion euros. Last week, we also tasked the Council to work urgently on further initiatives to address Ukraine’s pressing military and defence needs. At the same time, we are preparing to support Ukraine for when it decides to engage in negotiations, to help it reach a comprehensive, just and lasting peace. And we stand behind Ukraine together with many partners. On Friday, together with the President of the European Commission and the High Representative, I held a VTC with NATO partners. With the United Kingdom, with Canada, with Türkiye, with Norway, with Iceland. Right after the special EUCO. With positive reactions from our friends, on our decisions, on our speed. And with our joint commitment and our joint interest to reinforce our cooperation ever more. We must keep up the speed. At the European Council next week, we will continue the discussions and take more decisions.Also on competitiveness? On European shared prosperity, on European strategic autonomy.  We are all conscious of the urgency of catching on innovation, productivity, investment. So, restoring Europe’s competitiveness must remain at the top of our agenda. And it will be a key issue at the next European Council. I will come back to this Parliament to report on our discussions. (Pronounced In Portuguese) Today is not just the third anniversary of the Versailles Declaration. It is also the anniversary of the first-ever European Council meeting in March 1975. And my one hundredth day in office. One hundred days during which it has become clear that the Europe of Defence and the Europe of Shared Prosperity are the priorities in this mandate. They also go hand in hand. One hundred days during which it has become clear that building Europe’s role in the world is a strategic priority. Because the current context pushes us to expand our network of partners. An already impressive network. A network we have all it takes to grow. For trade agreements, for development cooperation and for leadership on major global causes such as the Pact for the Future and the fight against climate change. Because the EU is a reliable, predictable, and attractive partner and many countries are willing to engage with us at all levels. Finally, one hundred days in the spirit of excellent inter-institutional cooperation. Thank you dear Roberta (Metsola), thank you dear Ursula (von der Leyen). European institutions and Member States must be more united than ever to reinforce the European Union. To move forward, we need more confidence in ourselves. More trust in our collective power. More unity to face a new geopolitical era. There is no doubt that we are delivering faster. That the European Union is stronger. For security, peace and prosperity in Ukraine. For security, peace and prosperity in Europe.  Thank you.

● Council of the EU

11/03/2025 11:36 | Press release | Taxation: Council sets tax decluttering and simplification agenda   The Council approved conclusions today setting a tax decluttering and simplification agenda with a view to contributing to the EU’s competitiveness. The conclusions represent the Council’s views and give orientations on possible upcoming initiatives in the field of taxation, in the context of improving the EU’s competitiveness and reducing administrative, regulatory and reporting burdens. Among other things, the conclusions call for a review of the existing EU legislative framework in the area of taxation that should be based on four principles, also to be applied to current and future tax initiatives: reducing the reporting, administrative and compliance burdens for member states’ administrations and taxpayers eliminating outdated and overlapping tax rules and, where relevant increasing the clarity of tax legislation streamlining and improving the application of tax rules, procedures and reporting requirements The conclusions ask for a thorough analysis of the EU legislative framework and a clear identification of its scope and term. To begin with, this process could include a review of the existing directive on administrative cooperation in the field of taxation, in particular in relation to reportable cross-border arrangements, and of the directive laying down rules against tax avoidance practices that directly affect the functioning of the internal market. Furthermore, it should also cover a review of the complete EU taxation legislation, including indirect taxation. The Council invites the Commission to consult relevant stakeholders and introduce an operational, pragmatic and ambitious action plan including a feasible timeline and a road map of the envisaged work before the end of the autumn 2025. Background In its conclusions of April 2024 , the European Council stressed the need for a ‘new European competitiveness deal, anchored in a fully integrated Single Market’. The European Council invited the Commission to ‘significantly reduce the administrative and compliance burden on companies and national authorities, prevent over-regulation and ensure the enforcement of EU rules. Council conclusions on a tax decluttering and simplification agenda which contributes to the competitiveness of the EU ● Council of the EU   11/03/2025 11:28 | Press release | EIB: Council grants the bank greater flexibility to manage its investment capacity   The Council of the European Union approved a decision providing the European Investment Bank (EIB) with enhanced flexibility in managing its investment capacity. A modification to the bank’s statute will grant its governing body full authority over the maximum ratio of outstanding loans and guarantees granted by the bank in respect of its subscribed capital, reserves, non-allocated provisions and profit and loss account surplus (gearing ratio). This amendment aims to offer the EIB more room to invest and support the European Union’s priorities, without compromising its financial stability. “This decision marks a pivotal step for the European Investment Bank. It enables the EIB Board of Governors to increase the bank’s lending capacity while managing risks effectively. This will allow the EIB to better address Europe’s investment needs, respond to global challenges, and strengthen its role in the changing geopolitical landscape, contributing to Europe’s productivity, social cohesion, climate action, and peace and security.” — Andrzej Domański, Minister of Finance of Poland Extended Lending Capacity The EIB’s statute currently includes a cap on the gearing ratio that limits the size of the EIB Group’s overall nominal exposure to 250%. On 21 June 2024, the EIB Board of Governors unanimously decided to increase the gearing ratio to 290%. This increase is subject to the entry into force of today’s Council decision. With today’s modification, the statute will state that the total amount of loans and guarantees granted by the bank shall not exceed a maximum ratio relative to its subscribed capital, reserves, non-allocated provisions, and profit and loss account surplus, as established by the Board of Governors acting unanimously. Next Steps The Council decision will enter into force on the day after its publication in the Official Journal of the European Union. Background The Council decision was adopted at the request of the EIB, in accordance with a special legislative procedure. The European Commission and the European Parliament have already provided their opinions. The EIB decided to take this step following a G20 review of multilateral development banks' capital adequacy, which recommended that these institutions remove statutory lending limits from their statutes, thereby granting full authority to their governing bodies. Council decision amending EIB’s statute EIB website ● Council of the EU   11/03/2025 11:18 | Press release | Taxation: Council adopts VAT in the digital age package   The Council has today given its final green light on a set of laws to make the EU’s value added tax (VAT) rules fit for the digital age. “The EU’s VAT rules need to keep track of the digital transformation of our economies. This package will give the EU a competitiveness boost, help combat VAT fraud and cut the administrative burden for business.” — Andrzej Domanski, Polish minister for finance The package adopted today covers a directive, a regulation and an implementing regulation and brings changes to three different aspects of the VAT system. The new rules will: make VAT reporting obligations for companies who sell goods and services to businesses in another EU member state fully digital by 2030 require online platforms to pay VAT on short-term accommodation rentals and passenger transport services in most cases where individual service providers do not charge VAT improve and expand online VAT one-stop-shops so that businesses do not have to go through costly registrations for VAT in every member state in which they do business Next steps The directive, regulation and implementing regulation all enter into force on the twentieth day following their publication in the Official Journal of the EU. While the regulations are directly applicable, the directive will have to be transposed into national law. Background On 8 December 2022, the Commission presented the ‘VAT in the digital age’ package which consists of three proposals: a proposal for a Council directive amending directive 2006/112/EC as regards VAT rules for the digital age a proposal for a Council regulation amending regulation (EU) No 904/2010 as regards the VAT administrative cooperation arrangements needed for the digital age a proposal for a Council implementing regulation amending implementing regulation (EU) No 282/2011 as regards information requirements for certain VAT schemes Value added tax in the EU (background information) Taxation: Council agrees on VAT in the digital age package (press release, 5 November 2024) ● Council of the EU   11/03/2025 10:13 | Meetings | Competitiveness Council (Internal market and industry), 12 March 2025   Background brief - Competitiveness Council (Internal market and industry) of 12 March 2025

● Eurogroup

10/03/2025 21:36 | Meetings | Main results - Eurogroup, 10 March 2025   The Eurogroup reviewed macroeconomic developments in the euro area and discussed fiscal policy coordination, assessing past experiences and emerging budgetary challenges. Ministers also examined developments in the crypto-asset market, considering the implications for the euro area and any regulatory challenges they present. President Donohoe briefed ministers on the outcome of the February G7 meeting of finance ministers and central bank governors in Cape Town. Ahead of the March Euro Summit, he also presented key elements of his regular letter to the Euro Summit President, António Costa. ● Eurogroup   10/03/2025 20:50 | Statements and remarks | Remarks by Paschal Donohoe following the Eurogroup meeting of 10 March 2025   Let me walk you through the main points from today's meeting. Our first item was stocktaking of macroeconomic developments. It’s clear that we are in a very dynamic and uncertain environment. There is obvious uncertainty with regard to tariffs on trade, to the security situation in Europe and the impact of all these developments on growth and investment on growth and investment. It is important to highlight that the euro area economy continues to be remarkably resilient considering all of this. The latest projections show a slightly lower growth profile than was originally expected but some of the latest news will be growth positive. We then had a discussion on fiscal policy. We acknowledged that the geopolitical reality has changed, and the focus in Europe is now firmly on relying more on ourselves and less on others, especially in the area of security and defence. This will clearly have an impact on our current and future budgets. Some important measures have been announced, and all ministers are working through the implications of these new priorities on budget preparation. We all know that stability and safety in our public finances also goes hand in hand with security and this combination plays a role in reducing the scale of risks that we may face in the future. Some of us around the table had participated in a G7 meeting that took place in South Africa. So in the Eurogroup today, in inclusive format, we debriefed all ministers on that particular discussion and made the case for the importance of those kinds of exchanges and the need for solidarity and for support in dealing with the challenges that the trading system will face in the time ahead. We also had a very important discussion on crypto-assets markets. This is an area which is evolving very fast, both politically and technologically, and today was getting a very clear picture of where we stand. We know this is a global market and policy developments in other jurisdictions can have important consequences for us here in Europe. So these discussions are fundamentally linked to our own autonomy and to the resilience of our currency. The digital euro is critical to staying ahead of the curve in this area. A huge amount of technical work has now been done and there is growing appreciation amongst ministers of the importance of this work. Finally, we had a discussion in advance of the euro area summits. This month marks the one -year anniversary of the Eurogroup statement on the future of the capital markets union. Today we had a quick update on the work that we're doing to monitor progress at a national level. We got an update from Commissioner Dombrovskis on the work currently taking place in the Commission, that will shortly be concluding. I also presented to the Eurogroup a quick summary of the points that I plan to make in the Euro Summit and that I will be further communicating in my usual letter to President Costa. As is regular with new governments, we had a presentation of the policy priorities of the new government of Austria. ● Council of the EU   11/03/2025 12:27 | Press release | Council agrees to enhance cooperation and information exchange on minimum effective corporate taxation   The Council reached a political agreement today on a new EU directive (DAC9) that will improve administrative cooperation in the field of taxation. The objective of this legislation is to enhance cooperation and information exchange on minimum effective corporate taxation to better fulfil the filling obligations that multinational enterprise groups and large-scale domestic groups have under the Pillar 2 of the G20/OECD global agreement. This international deal was reached to avoid base erosion and profit shifting, ensuring that large corporations pay a minimum effective taxation. The Pillar 2 rules became part of EU law in 2022. “We’re making the next step in implementing the rules on minimum effective taxation of the largest multinationals. The companies concerned will have a single format for filing relevant information, and member states’ tax authorities will closely cooperate on exchanging relevant information. This will significantly simplify the filing process and reduce the administrative burden both for tax authorities and companies concerned.” — Andrzej Domański, Minister of Finance of Poland DAC9 updates the existing EU's directive on administrative cooperation (DAC) by expanding tax transparency rules. It simplifies reporting for large corporations, enhances data exchange between tax authorities, and aligns with global minimum taxation standards. This new directive also creates a standard form, in line with the one developed by the G20/OECD's Inclusive Framework on Base Erosion and Profit Shifting (BEPS), which multinationals and large domestic groups will be required to use to report tax-related information that are necessary to ensure proper functioning of the system on minimum rate of corporate tax. The profit of the large multinational and domestic groups or companies with a combined annual turnover of at least €750 million is meant to be taxed at a minimum rate of 15%. Next steps The DAC9 directive will be formally adopted by the Council, which acts as a sole legislator, once the legal linguistic work has been completed. After that, it will be published in the Official Journal and will enter into force on the day following that of its publication. Member states will have to implement DAC 9 by 31 December 2025. Countries opting to delay the implementation of the 'Pillar 2 Directive' are still required to transpose DAC 9 by the same deadline. Background On 8 October 2021, almost 140 countries in the OECD/G20 Inclusive Framework on BEPS reached a landmark agreement on international tax reform, as well as on a detailed implementation plan. On 22 December 2021, the Commission presented a proposal for a directive which aims to implement Pillar 2 in a way which is consistent and compatible with EU law. The ‘Pillar 2 directive’ sets out an obligation to file the top-up tax information return (TTIR) that contains the information a tax administration needs to perform an appropriate risk assessment and evaluate the entity’s tax liability correctly. The directive allows for multinationals to perform a central TTIR filing for the entire group by the ultimate parent entity or designated filing entity, instead of each company that forms part of a multinational enterprise group filing a local TTIR in each jurisdiction they are based in. DAC9, which will contain the standard format of a TTIR, will render these provisions operational. The Commission presented the DAC9 proposal on 17 October 2024. The European Parliament was consulted on the proposal and issued its opinion on 12 February 2025. Political agreement - directive on administrative cooperation in the field of taxation (DAC9) Political agreement - directive on administrative cooperation in the field of taxation (DAC9) - statement by the Commission EU Directive on Pillar 2 Digital taxation (background information) DAC 9 proposal (background information)

● Council of the EU

11/03/2025 12:27 | Press release | Council agrees to enhance cooperation and information exchange on minimum effective corporate taxation   The Council reached a political agreement today on a new EU directive (DAC9) that will improve administrative cooperation in the field of taxation. The objective of this legislation is to enhance cooperation and information exchange on minimum effective corporate taxation to better fulfil the filling obligations that multinational enterprise groups and large-scale domestic groups have under the Pillar 2 of the G20/OECD global agreement. This international deal was reached to avoid base erosion and profit shifting, ensuring that large corporations pay a minimum effective taxation. The Pillar 2 rules became part of EU law in 2022. “We’re making the next step in implementing the rules on minimum effective taxation of the largest multinationals. The companies concerned will have a single format for filing relevant information, and member states’ tax authorities will closely cooperate on exchanging relevant information. This will significantly simplify the filing process and reduce the administrative burden both for tax authorities and companies concerned.” — Andrzej Domański, Minister of Finance of Poland DAC9 updates the existing EU's directive on administrative cooperation (DAC) by expanding tax transparency rules. It simplifies reporting for large corporations, enhances data exchange between tax authorities, and aligns with global minimum taxation standards. This new directive also creates a standard form, in line with the one developed by the G20/OECD's Inclusive Framework on Base Erosion and Profit Shifting (BEPS), which multinationals and large domestic groups will be required to use to report tax-related information that are necessary to ensure proper functioning of the system on minimum rate of corporate tax. The profit of the large multinational and domestic groups or companies with a combined annual turnover of at least €750 million is meant to be taxed at a minimum rate of 15%. Next steps The DAC9 directive will be formally adopted by the Council, which acts as a sole legislator, once the legal linguistic work has been completed. After that, it will be published in the Official Journal and will enter into force on the day following that of its publication. Member states will have to implement DAC 9 by 31 December 2025. Countries opting to delay the implementation of the 'Pillar 2 Directive' are still required to transpose DAC 9 by the same deadline. Background On 8 October 2021, almost 140 countries in the OECD/G20 Inclusive Framework on BEPS reached a landmark agreement on international tax reform, as well as on a detailed implementation plan. On 22 December 2021, the Commission presented a proposal for a directive which aims to implement Pillar 2 in a way which is consistent and compatible with EU law. The ‘Pillar 2 directive’ sets out an obligation to file the top-up tax information return (TTIR) that contains the information a tax administration needs to perform an appropriate risk assessment and evaluate the entity’s tax liability correctly. The directive allows for multinationals to perform a central TTIR filing for the entire group by the ultimate parent entity or designated filing entity, instead of each company that forms part of a multinational enterprise group filing a local TTIR in each jurisdiction they are based in. DAC9, which will contain the standard format of a TTIR, will render these provisions operational. The Commission presented the DAC9 proposal on 17 October 2024. The European Parliament was consulted on the proposal and issued its opinion on 12 February 2025. Political agreement - directive on administrative cooperation in the field of taxation (DAC9) Political agreement - directive on administrative cooperation in the field of taxation (DAC9) - statement by the Commission EU Directive on Pillar 2 Digital taxation (background information) DAC 9 proposal (background information) ● Council of the EU   11/03/2025 12:09 | Media advisory | Press briefing - General Affairs Council of 18 March 2025   The press briefing ahead of the General Affairs Council will take place on Thursday, 13 March 2025 at 10.00 in the Europa building press room. This briefing will be "off the record". The press briefing will take place in a hybrid format: EU accredited journalists will be able to participate and ask questions either remotely or in person. To attend the event remotely, please use this link to register and have the possibility to ask questions. Those who already registered for previous press events of the General Affairs Council do not need to do it again. Deadline for registration: Thursday, 13 March 2025 at 09.00 Further instructions will be sent to all registered participants shortly after the deadline.

● Council of the EU

11/03/2025 13:35 | Press release | Recovery and resilience fund: Council greenlights the amended plans of Ireland and Belgium   The Council today approved the Commission’s positive assessment of the amended recovery and resilience plans submitted by Ireland 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. Ireland On 31 January 2025, Ireland submitted targeted amendments to its recovery and resilience plan. Ireland has explained that seven measures have been amended to implement better alternatives that would allow for the reduction of the administrative burden while still achieving the objectives of those measures. The estimated total cost of the plan is € 1.16 billion. Belgium On 20 February 2025, Belgium submitted targeted amendments to its recovery and resilience plan. Belgium has explained that one measure concerning end of career and pensions has been amended in order to replace the submission of the proposal to the Council of Ministers for approval by the adoption of the proposal by the Council of Ministers. The estimated total cost of the plan is € 5.28 billion. 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 Ireland Council implementing decision approving the assessment of the recovery and resilience plan for Belgium A recovery plan for Europe (background information)