COUNCIL OF THE EUROPEAN UNION,update

 

Press material Monday, 14 April 2025

● Council of the EU   14/04/2025 09:07 | Press release | Simplification: Council gives final green light on the ‘Stop-the-clock’ mechanism to boost EU competitiveness and provide legal certainty to businesses   The Council gave its final green light today on one of the Commission’s proposals to simplify EU rules and thus boost EU competitiveness. This proposal (the so-called ‘Stop-the-clock’ directive) postpones the dates of application of certain corporate sustainability reporting and due diligence requirements, as well as the transposition deadline of the due diligence provisions. “Today we delivered on our promise regarding simplification of EU laws. The fast adoption of this directive is an important first step towards cutting red tape, providing legal certainty to our companies and making the EU more competitive.” — Adam Szłapka, Minister for the European Union of Poland The proposal forms part of the ‘Omnibus I’ package adopted by the Commission at the end of February 2025 to simplify EU legislation in the field of sustainability. In view of significant implications for the business community, the Council and the European Parliament have treated this proposal with utmost priority aiming to provide EU companies with the necessary legal certainty as regards their reporting and due diligence obligations. The EU’s co-legislators therefore supported the Commission’s proposal to postpone: by two years the entry into application of the Corporate Sustainability Reporting Directive (CSRD) requirements for large companies that have not yet started reporting, as well as listed SMEs, and by one year the transposition deadline and the first phase of the application (covering the largest companies) of the Corporate Sustainability Due Diligence Directive (CSDDD). This swift agreement will provide the co-legislators with time to agree on substantive changes to the CSRD and CSDDD, also proposed by the Commission as part of the ‘Omnibus I’ package on sustainability. Next steps Following today’s adoption, the legislative act will be published in the EU’s Official Journal and enter into force on the day following that of this publication. Member states must transpose this directive into their national legislation by 31 December 2025. Background In October 2024, the European Council called on all EU institutions, member states and stakeholders, as a matter of priority, to take work forward, notably in response to the challenges identified in the reports by Enrico Letta (‘Much more than a market’) and Mario Draghi (‘The future of European competitiveness’). The Budapest declaration of 8 November 2024 subsequently called for ‘launching a simplification revolution’, by ensuring a clear, simple and smart regulatory framework for businesses and drastically reducing administrative, regulatory and reporting burdens, in particular for SMEs. On 26 February 2025, as a follow-up to EU leaders’ call, the Commission put forward two ‘Omnibus’ packages, aiming to simplify existing legislation in the fields of sustainability and investment, respectively. On 20 March 2025, leaders urged the co-legislators to take work forward on these Omnibus simplification packages as a matter of priority and with a high level of ambition, with a view to finalising them as soon as possible in 2025. On this occasion, the European Council specifically called on co-legislators to adopt the ‘Stop-the-clock’ mechanism without delay and at the latest by June 2025. Directive as regards the dates from which member states are to apply certain corporate sustainability reporting and due diligence requirements, 14 April 2025 Proposal for a directive as regards the dates from which member states are to apply certain corporate sustainability reporting and due diligence requirements, Outcome of the European Parliament’s first reading (Strasbourg, 3 April 2025) Draft directive on the dates from which member states are to apply certain corporate sustainability reporting and due diligence requirements, Commission proposal, 26 February 2025

● Council of the EU

14/04/2025 08:49 | Press release | Council moves one step closer to concluding the Digital Trade Agreement with Singapore   The Council today adopted the decision on the signature of the Digital Trade Agreement (DTA) with Singapore. It also preliminarily backed the decision on the conclusion of the agreement, pending the European Parliament’s consent. New commitments on bilateral digital trade The DTA complements the 2019 EU-Singapore Free Trade Agreement, with ambitious and binding commitments on digital trade. The new agreement will enhance consumer protection online, provide legal certainty for businesses, ensure trusted data flows, and address unjustified barriers to digital trade, in line with the Union’s digital trade policy. The policy aims to boost the Union’s digital transformation and reinforce its economic security. The agreement fully respects EU rules on data protection. Next steps The signing of the agreement will take place at a later stage. After the signature both sides will have to ratify the agreement. In the case of the EU, the European Parliament’s consent is necessary before the Council can adopt the decision on the conclusion of the agreement. Background The EU has a key interest in digital trade. In 2022, 55% of total EU trade in services was digitally delivered, representing €670 billion of imports and €661 billion of exports from outside the EU. This includes telecommunication services, computer and information services, and other services that are typically delivered digitally (e.g. financial services). Negotiations for a comprehensive bilateral trade and investment agreement with Singapore began in 2010 and were completed in 2017. The negotiations resulted in a Free Trade Agreement (FTA) and an Investment Protection Agreement (IPA). On 25 July 2024, the EU and Singapore also concluded negotiations on a Digital Trade Agreement (DTA). EU- Singapore digital trade agreement EU-Singapore trade relations The EU-Singapore agreements explained EU-Singapore conclude negotiations (press release, July 2024) Digital trade agreements ● Council of the EU   14/04/2025 08:44 | Press release | Council adopts rules to extend cooperation and information exchange between tax authorities to minimum effective corporate taxation   The Council adopted today a directive (DAC9) that will extend cooperation and information exchange in the area of minimum effective corporate taxation. The objective of this directive is to put into operation specific provisions of the Pillar 2 Directive that implemented in the EU the G20/OECD global agreement on international tax reform. This international deal was reached to limit the race to the bottom in corporate tax rates, reduce the risk of tax base erosion and profit shifting and ensure that the largest multinational groups pay the agreed global minimum rate of corporate tax. The Pillar 2 Directive ensures that profits of the largest multinational and domestic groups or companies (with a combined annual group turnover of at least €750 million) are taxed at a minimum effective rate of 15%. More transparency and simplified reporting DAC9 updates the existing EU's directive on administrative cooperation (DAC) by expanding tax transparency rules. It simplifies reporting for large corporations by enabling central filing a top-up tax information return (TTIR) i.e. one company files for the whole group concerned, instead of local filing i.e. each company files separately. It introduces a standard form for filing the TTIR across the EU, in line with the one developed by the G20/OECD's Inclusive Framework on Base Erosion and Profit Shifting (BEPS). DAC9 also extends the framework for automatic exchange between member states to cover TTIR. Next steps The DAC directive will enter into force the day after its publication in the Official Journal of the European Union. Member states will have to adopt and publish, by 31 December 2025, the laws, regulations and administrative provisions necessary to comply with this directive. The first top-up tax reporting is due by 30 June 2026. Countries opting to delay the implementation of the Pillar 2 Directive are still required to transpose DAC 9 by the same deadline. Background The DAC9 directive was proposed in 2024 by the Commission, in order to put into operation specific provisions on top up tax information return set out in Council Directive (EU) 2022/2523 of 15 December 2022 on ensuring a global minimum level of taxation for multinational enterprise groups and large-scale domestic groups (the Pillar 2 Directive). The Pillar 2 Directive transposed to EU law a landmark agreement on international tax reform, reached by the G20/OECD Inclusive Framework on Base Erosion and Profit Shifting (BEPS). The European Parliament was consulted on the proposal for the DAC9 and issued its opinion on 12 February 2025. Directive on administrative cooperation in the field of taxation (DAC9) 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 (European Commission)

● Council of the EU

14/04/2025 08:39 | Press release | Jordan: Council adopts decision to provide EU assistance of €500 million in loans   The Council officially adopted a decision to provide up to €500 million in macro-financial assistance (MFA) to Jordan. The EU assistance will bolster Jordan’s economic stability and support its ongoing reform agenda in the face of mounting internal and external challenges. It will help the country meet its outstanding external financing needs while creating the fiscal space necessary to sustain reform efforts. The assistance, provided in response to Jordan’s request for additional support in October 2023, will be available for two and a half years and will be provided in the form of concessional loans, granted at terms that allow Jordan to repay them during a long period, including a possible grace period. Loans will be disbursed in three instalments. The new support for Jordan will be provided under conditions outlined in a memorandum of understanding (MoU) between Jordan and the European Commission. The disbursement of instalments will be contingent on Jordan's progress with the reforms specified in the MoU. Additionally, Jordan must continue to uphold democratic mechanisms, the rule of law, and human rights throughout the programme. Monitoring will be conducted by the Commission and the European External Action Service (EEAS). Next steps The decision will enter into force on the third day after publication in the Official Journal. Background Since 2013, the EU has provided Jordan with €1.08 billion through three previous macro-financial assistance (MFA) programmes, with the latest MFA-III programme (2020-2023) offering €700 million to support key reforms in public finance management, social policies, and governance. The EU and Jordan have been linked by an Association Agreement since 2002. In 2022, they signed the Partnership Priorities, which aim to strengthen cooperation further and will guide the partnership until 2027. The EU's support to Jordan assists the country in mitigating the impact of the war in Syria and the resulting large number of refugees. Overall, the EU has already mobilised around €4 billion for Jordan since the beginning of this crisis in 2011. Decision of the Council and the EP Council decision on macro-financial assistance to Jordan, 4 March 2025 EU’s Macro-Financial Assistance (MFA) EU-Jordan Partnership Priorities