EUROGROUP,COUNCIL OF THE EUROPEAN UNION,update

 

Press material Wednesday, 18 June 2025

● Council of the EU   18/06/2025 16:49 | Press release | Securities trading: Council and Parliament agree on shorter settlement cycle   The Council and the European Parliament reached a provisional agreement today on new rules to make transactions in transferable securities more efficient. The goal is to shorten the settlement cycle on securities trades, such as transactions in shares or bonds, executed on EU trading venues, from no later than two business days (the so-called ‘T+2’) to no later than one business day after the trade date (‘T+1’). “A win for the Polish Presidency — we led the push to shorten the settlement cycle from T+2 to T+1, meaning trades in shares or bonds will now be settled in one day instead of two. Faster settlements mean stronger markets and a more competitive EU.” — Andrzej Domanski, Polish minister for finance The new measure takes the form of an amendment to the central securities depositories regulation (CSDR), which entered into force ten years ago. The regulation harmonised the securities settlement cycle in the EU at a maximum of two business days after the trade date. Since then, many markets outside the EU have shortened their settlement cycle or are in the process of doing so. Today’s agreement to change the settlement cycle in the CSDR will therefore prevent a misalignment between EU and global financial markets and maintain the competitiveness of EU capital markets. Indeed, both the Draghi and Letta reports highlight the current post-trading landscape, including settlement of trades, as a significant barrier to EU capital markets. Exemption for certain products The co-legislators agreed however to exempt certain securities financing transactions (SFTs) from the settlement cycle requirement. SFTs are financial transactions that allow investors and firms to use assets, such as the shares or bonds they own, to secure funding for their activities. In order to avoid any risks of circumvention of the T+1 settlement cycle requirement, the exemption should only apply if SFTs are documented as single transactions composed of two linked operations. Next steps The two institutions will have to formally adopt the new rules. They will then apply from 11 October 2027. Background The Commission proposed the initiative to shorten the settlement cycle on 12 February 2025. Securities settlement: member states agree position on shorter settlement cycle (press release, 7 May 2025) Council mandate for negotiations with the European Parliament Capital Markets Union explainer (background information) Timeline: Capital Markets Union (background information)

● Council of the EU

18/06/2025 16:21 | Press release | Cohesion policy mid-term review: Council agrees positions to better address current and emerging challenges   In the context of the ongoing EU cohesion policy’s mid-term review, member states’ representatives (Coreper) agreed today the Council’s negotiating positions aiming to better address current and emerging strategic challenges linked to the economic, social and territorial cohesion. “Today, we took a first step towards the modernisation of EU’s cohesion policy. It needs to be aligned with our current and emerging challenges and new priorities, such as competitiveness, defence and security, affordable housing, and energy transition.” — Katarzyna Pełczyńska-Nałęcz, Minister for Funds and Regional Policy of Poland The negotiating mandates cover the Commission proposals amending: the regulations on the European Regional Development Fund (ERDF) and the Cohesion Fund, as well as on the Just Transition Fund (JTF), and the regulation on the European Social Fund Plus (ESF+) The Commission proposals contain targeted amendments to the regulatory framework of the cohesion policy funds to align investment priorities with the evolving economic, societal and geopolitical context, as well as with the EU’s climate and environment objectives. Their main objective is to align cohesion policy investments to new priorities, notably competitiveness and decarbonisation, defence and security, affordable housing, access to water, sustainable water management and water resilience, energy transition and challenges facing Eastern border regions. To this end, they introduce greater flexibility and incentives to facilitate the rapid deployment of resources and accelerate the implementation of the programmes. Council’s negotiating positions The Council negotiating mandates reflect the efforts of the presidency to balance concerns related to the budgetary impact of the proposals, particularly on the annual budget for 2026, and the capacity of member states to make concrete use of the incentives provided. The compromise texts are based on the following main elements: lowering of pre-financing and co-financing rates at the level of priority for all new specific objectives, while also lowering the threshold for additional financial incentives introducing additional derogations from the Common Provisions Regulation (CPR) - the single rulebook of EU funds jointly delivered with member states and regions - on publicity by beneficiaries introducing additional provisions concerning flexibilities for member states that comply with the concentration requirements at the level of category of regions introducing a new article in each proposal to confirm that commitments suspended by measures adopted in the context of the conditionality regulation cannot be subject to programme amendments or transfers. The same stands for amounts exceeding the flexibility amount corresponding to the specific objectives negatively assessed by the Commission based on the application of horizontal enabling conditions in the CPR. Moreover, in the case of the ERDF and the Cohesion Fund, as well as the JTF regulations, the text introduces an extension of scope for specific objectives related to energy infrastructure and defence or dual use infrastructure. Next steps The presidency will start negotiations with the European Parliament to reach an agreement. Background information On 1 April 2025, the Commission published the Communication titled ‘A modernised Cohesion policy: The mid-term review’ alongside two legislative proposals that amend: (i) the regulations on the European Regional Development Fund (ERDF), the Cohesion Fund and the Just Transition Fund (JTF), and (ii) the regulation on the European Social Fund+. This package takes the opportunity of the ongoing mid-term review of cohesion programmes, which serves to allocate the ‘flexibility reserve’ that corresponds to 50% allocation of all funds for 2026 and 2027, to introduce new priorities that stem from the current geopolitical and economic challenges. The proposals devote special attention to defence and security with a view to competitiveness, Eastern border regions, affordable housing (including social housing), secure access to water, sustainable water management and water resilience, energy transition (decarbonisation), and cities. They envisage financial incentives for those programmes that allocate the flexibility reserve towards any of these priorities (higher pre-financing and up to 100% EU financing). In case the programmes devote at least 15% of their allocation to these priorities, they get extra pre-financing as bonus, and an extension of eligibility by one year (until 31 December 2031). Regulation on specific measures to address strategic challenges in the context of the mid-term review, Commission proposal, 2 April 2025 Regulation amending regulation (EU) 2021/1057 establishing the European Social Fund + (ESF+) on specific measures to address strategic challenges, Commission proposal, 2 April 2025 ‘A modernised Cohesion policy: The mid-term review’, Commission communication, 1 April 2025 Cohesion: How the EU supports regional development to create jobs and prosperity across its member countries (background information)

● Council of the EU

18/06/2025 16:15 | Press release | Carbon border adjustment mechanism (CBAM): Council and Parliament strike a deal on its simplification   The Council presidency and European Parliament’s negotiators reached a provisional agreement today on one of the proposals of the so-called ‘Omnibus I’ legislative package: a regulation, which simplifies and strengthens the EU’s carbon border adjustment mechanism (CBAM). The proposal seeks to provide simplification and cost-efficient compliance improvements to the CBAM regulation, without compromising its climate goals, as about 99% of embedded emissions in the imported CBAM goods would remain covered. The overall aim is to reduce the regulatory and administrative burden, as well as compliance costs for EU companies, especially SMEs. “Simplification is a top priority for the Polish presidency. Today’s provisional agreement with the Parliament is yet another step towards reducing administrative burden for our companies and further boosting EU competitiveness.” — Adam Szłapka, Minister for the European Union of Poland Main elements of the agreement The co-legislators retained the key components of the Commission proposal to simplify CBAM rules: a broader ‘de minimis’ exemption from CBAM obligations applicable to importers, which do not exceed a single mass-based threshold set at a level of 50 tonnes of imported goods per importer per year. This new threshold will replace the current and much narrower provisions of the CBAM regulation exempting goods of negligible value. The measure is expected, in most cases, to exempt from CBAM obligations SMEs and individuals, which import small or negligible quantities of goods covered by the CBAM regulation. The revised regulation will also permit to avoid any disruptions for importers in the beginning of 2026, as they will be able to continue importing CBAM goods while awaiting CBAM registration. Furthermore, the provisional agreement contains several other simplification measures for all importers of CBAM goods above the threshold. This concerns particularly the authorisation procedure, the data collection processes, the calculation of embedded emissions, the emission verification rules, the calculation of the CBAM declarants’ financial liability during the year of imports, and the claim by CBAM declarants for carbon prices paid in third countries where goods are produced. An agreement was also reached between the co-legislators on penalties and on the rules regarding indirect customs representatives. Finally, the text contains further specifications deemed both useful and necessary for the purposes of certainty and clarity regarding the arrangement on financing of the costs incurred in connection with the establishment, operation and management of the common central CBAM platform, which will be used to sell CBAM certificates to CBAM declarants. Next steps Today’s provisional agreement must be now endorsed by the Council and the European Parliament before formal adoption, expected by September 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. Regulation on simplifying and strengthening the carbon border adjustment mechanism, Council general approach, 27 May 2025 Regulation amending regulation (EU) 2023/956 as regards simplifying and strengthening the carbon adjustment mechanism, Commission proposal, 26 February 2025 ● Council of the EU   18/06/2025 15:11 | Meetings | Agenda highlights - Agriculture and Fisheries Council, 23-24 June 2025   The Agriculture and Fisheries Council will seek to reach a general approach on a regulation for a forest monitoring framework, and discuss trade-related agricultural issues. Fisheries ministers will exchange views on a Commission communication on sustainable fishing in the EU, highlighting their overall priorities for this year's exercise of setting fishing opportunities for 2026. Furthermore, the Council will take note of the progress made on current legislative proposals, including on animal transport, plant reproductive material and new genomic techniques. ● Council of the EU   18/06/2025 15:06 | Press release | Cohesion policy mid-term review: Council agrees positions to better address current and emerging challenges   In the context of the ongoing EU cohesion policy’s mid-term review, member states’ representatives (Coreper) agreed today the Council’s negotiating positions aiming to better address current and emerging strategic challenges linked to the economic, social and territorial cohesion. The negotiating mandates cover the Commission proposals amending: the regulations on the European Regional Development Fund (ERDF) and the Cohesion Fund, as well as on the Just Transition Fund (JTF) the regulation on the European Social Fund Plus (ESF+) The Commission proposals contain targeted amendments to the regulatory framework of the cohesion policy funds to align investment priorities with the evolving economic, societal and geopolitical context, as well as with the EU’s climate and environment objectives. Their main objective is to align cohesion policy investments to new priorities, notably competitiveness and decarbonisation, defence and security, affordable housing, access to water, sustainable water management and water resilience, energy transition and challenges facing Eastern border regions. To this end, they introduce greater flexibility and incentives to facilitate the rapid deployment of resources and accelerate the implementation of the programmes. Council’s negotiating positions The Council negotiating mandates reflect the efforts of the presidency to balance concerns related to the budgetary impact of the proposals, particularly on the annual budget for 2026, and the capacity of member states to make concrete use of the incentives provided. The compromise texts are based on the following main elements: lowering of pre-financing and co-financing rates at the level of priority for all new specific objectives, while also lowering the threshold for additional financial incentives lowering the threshold for receiving extra bonuses, such as further pre-financing at programme level and extending by one year the final year of eligibility, with a special view to member states having only one programme introducing additional derogations from the Common Provisions Regulation (CPR) - the single rulebook of EU funds jointly delivered with member states and regions - on publicity by beneficiaries introducing additional provisions concerning flexibilities for member states that comply with the concentration requirements at the level of category of regions introducing a new article in each proposal to confirm that commitments suspended by measures adopted in the context of the conditionality regulation cannot be subject to programme amendments or transfers. The same stands for amounts exceeding the flexibility amount and corresponding to the specific objectives negatively assessed by the Commission based on the application of horizontal enabling conditions in the CPR Moreover, in the case of the ERDF and the Cohesion Fund, as well as the JTF regulations, the text introduces an extension of scope for specific objectives related to energy infrastructure and defence or dual use infrastructure. Next steps The presidency will start negotiations with the European Parliament to reach an agreement. Background information On 1 April 2025, the Commission published the Communication titled ‘A modernised Cohesion policy: The mid-term review’ alongside two legislative proposals that amend: (i) the regulations on the European Regional Development Fund (ERDF), the Cohesion Fund and the Just Transition Fund (JTF), and (ii) the regulation on the European Social Fund+. This package takes the opportunity of the ongoing mid-term review of cohesion programmes, which serves to allocate the ‘flexibility reserve’ that corresponds to 50% allocation of all funds for 2026 and 2027, to introduce new priorities that stem from the current geopolitical and economic challenges. The proposals devote special attention to defence and security with a view to competitiveness, Eastern border regions, affordable housing (including social housing), secure access to water, sustainable water management and water resilience, energy transition (decarbonisation), and cities. They envisage financial incentives for those programmes that allocate the flexibility reserve towards any of these priorities (higher pre-financing and up to 100% EU financing). In case the programmes devote at least 15% of their allocation to these priorities, they get extra pre-financing as bonus, and an extension of eligibility by one year (until 31 December 2031). Regulation on specific measures to address strategic challenges in the context of the mid-term review, Commission proposal, 2 April 2025 Regulation amending regulation (EU) 2021/1057 establishing the European Social Fund + (ESF+) on specific measures to address strategic challenges, Commission proposal, 2 April 2025 ‘A modernised Cohesion policy: The mid-term review’, Commission communication, 1 April 2025 Cohesion: How the EU supports regional development to create jobs and prosperity across its member countries (background information)

● European Council

18/06/2025 14:55 | Media advisory | Press briefing - EU-Canada summit of 23 June 2025   The press briefing ahead of the EU-Canada summit of 23 June 2025 will take place on Friday 20 June 2025 at 15.00. 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 in person at the Europa building press room or remotely. To attend the event remotely, please use this form to register and have the possibility to ask questions. Deadline for registration: Friday, 20 June 2025 at 14.00 Further instructions will be sent to all registered participants shortly after the deadline.

● Council of the EU

18/06/2025 14:32 | Press release | Council agrees its position on a more modern payment service framework in the EU   Today, member states' representatives (Coreper) approved the Council’s stance on improving the payment services environment in the EU. The upgrade aims to reduce payment fraud, promote technological innovation, better protect consumers and increase transparency on fees. “Consumers deserve a fraud-resistant, transparent and safe payment services environment. At the same time, we need to encourage innovation in the sector. These new rules will deliver on both fronts.” — Andrzej Domanski, Polish minister for finance Once agreed by the co-legislators (the Council and the European Parliament), the proposals will create a new payment services regulation and will amend the existing payment services directive (PSD2) to create a more modern framework in this field. Tackling payment fraud, increasing consumer protection and transparency The proposals aim to put in place a comprehensive anti-fraud framework. This could help tackle increasingly common new forms of payment scams, such as so-called 'spoofing fraud', which happens when a fraudster pretends to be a customer's payment service provider to gain trust and trick the user into carrying out financial actions. Among other provisions, payment service providers will have to share fraud-related information between themselves, and put in place a system where IBAN numbers can be checked against a corresponding bank account name before transferring money to it. The Council’s negotiating mandate strengthens the anti-fraud aspects of the proposals by including electronic communications service providers such as internet carriers and messaging platforms in the fraud prevention scope. It stipulates more clearly that consumers should not be left at a disadvantage as a result of fraudulent behaviour, and emphasises that the new legislation must align closely with EU data protection law. The new rules also introduce more transparency when it comes to ATM transactions which will have to show all fees due and exchange rates before a transaction takes place. The Council has introduced further provisions to enhance transparency on payment card scheme fees and rules. Overall, EU consumers and businesses will have a better overview of applicable fees and will therefore be able to make better choices. New developments in technology The proposals also aim at adapting the EU’s payment service landscape to new and innovative ways of making payments. Innovative payment initiation service providers and information services providers will be able to offer customers more useful and more modern payment services because of their improved access to all necessary bank account information. The Council’s position, while supportive of innovation in the payment service industry, also argues for safeguards to be put in place in this area.  Next steps The agreement on the Council's negotiating mandate allows the presidency to start negotiations with the European Parliament on a final text Background The Commission made its proposals to modernise EU payment services on 27 June 2023. The initiative forms part of the Digital Finance Strategy. The Strategy aims to help unleash European innovation and create opportunities to develop better financial products for consumers, including for people currently unable to access financial services. It should also unlock new ways of channelling funding to EU businesses, in particular SMEs. Council mandate for negotiations on the payment services regulation Council mandate for negotiations on the payment services directive Capital markets union explained (background information) ● Council of the EU   18/06/2025 12:46 | Media advisory | Press briefing - Foreign Affairs Council of 23 June 2025   The press briefing ahead of the Foreign Affairs Council will take place on Friday, 20 June 2025 at 10.00. This press briefing will be 'off the record' and will be given by a senior EEAS official in a hybrid format: EU accredited journalists will be able to participate and ask questions either remotely or in person at the Europa building press room. 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 Foreign Affairs Council do not need to do it again. Deadline for registration: Friday, 20 June 2025, 09.00 Further instructions will be sent to all registered participants shortly after the deadline. ● Council of the EU   18/06/2025 12:39 | Media advisory | Press briefing - Agriculture and Fisheries Council of 23-24 June 2025   The press briefing ahead of the Agriculture and Fisheries Council will take place on Friday, 20 June 2025 at 12.30. 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 at the Europa building press room. 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 Agriculture and Fisheries Council do not need to do it again. Deadline for registration: Friday, 20 June 2025, 11.30 Further instructions will be sent to all registered participants shortly after the deadline. ● Eurogroup   18/06/2025 12:19 | Meetings | Agenda highlights - Eurogroup, 19 June 2025   The Eurogroup will hear a presentation by the International Monetary Fund on the findings of the Article IV review and its recent analysis of internal barriers in the single market. Ministers will also discuss national budgetary developments in the context of the new fiscal framework. The Eurogroup will welcome Bulgarian representatives and discuss and endorse a draft recommendation by euro area member states to the Council on Bulgaria’s adoption of the euro. Ministers will receive updates on the technical progress of the digital euro project. ● European Council   18/06/2025 03:55 | Press release | Europe and Australia commit to security and defence partnership   European Council President António Costa and European Commission President Ursula von der Leyen met Prime Minister Anthony Albanese today and agreed to start negotiations on a Security and Defence Partnership (SDP) at the G7 Leaders’ Summit in Alberta, Canada. The Partnership will provide a framework for current and future cooperation including in areas such as defence industry, cyber and counter-terrorism.  Existing SDPs the EU has with other countries include cooperation on cyber, countering hybrid threats, maritime security, non-proliferation and disarmament, space and economic security. A Security and Defence Partnership aims to strengthen cooperation on global security challenges. It does not have military deployment obligations. Discussions on an SDP with the EU and renewed engagement to conclude an Australia-EU Free Trade Agreement, demonstrate strong momentum in the Australian - Europe relationship.  Negotiation of an SDP will remain separate to efforts to conclude an Australia-EU Free Trade Agreement that we are focussed on taking forward in Australia’s national interest. “Australia is an important partner for the European Union. We share the same values and a strong commitment to multilateralism and the rules-based global order. Europe’s and the Indo-Pacific’s regions are connected. Opening negotiations on a Security and Defence Partnership opens new opportunities to further strengthen our cooperation.” — António Costa, President of the European Council “In a time of rising tensions and strategic competition, trusted partners must stand together. Europe and Australia's enduring friendship enters a new chapter today. Recognising the shared security of Europe and the Indo-Pacific, we are launching talks on a Security and Defence Partnership. We're also committed to advancing free trade negotiations—because economic security matters too.” — Ursula von der Leyen, President of the European Commission “I am pleased to announce we’re stepping up our cooperation with the European Union today. We see how deeply connected Europe’s security and the Indo-Pacific region have become. I very much welcome the EU’s offer for a Security and Defence Partnership and Australia will warmly take it up and commence work immediately. This will open the door to joint defence procurement opportunities and will benefit both our industries and our security. At a time of global uncertainty, it is our collective responsibility to work together to uphold peace, security and economic prosperity. That is what I will continue to do every day and that has been a key take out of our work here at the G7 today.” — Anthony Albanese, Prime Minister of Australia ● European Council   17/06/2025 22:32 | Press release | G7 Leaders’ Joint Statements - Kananaskis, Canada, 17 June 2025   At the 2025 G7 Leaders’ Summit held in Kananaskis, the leaders of the G7 discussed topics ranging from international peace and security to global economic stability, growth, and emerging technologies. They adopted the following statements: G7 Leaders’ statement on recent developments between Israel and Iran G7 Leaders' statement on transnational repression G7 Leaders' statement on AI for prosperity G7 critical minerals action plan G7 Leaders' statement on countering migrant smuggling Kananaskis wildfire charter Kananaskis common vision for the future of quantum technologies

● Council of the EU

17/06/2025 19:21 | Meetings | Main results - Environment Council, 17 June 2025   Environment ministers adopted a general approach on the end-of-life vehicles regulation and held a discussion on the EU's position for the forthcoming COP30

• Council of the EU

­ 17/06/2025 | MEETINGS  Background briefs - Economic and Financial Affairs Council of 20 June 2025 and General Affairs Council of 24 June 2025 Economic and Financial Affairs Council Council of 20 June 2025 General Affairs Council of 24 June 2025