EUROGROUP,COUNCIL OF THE EUROPEAN UNION,think tank,update

 

Meetings Monday, 07 July 2025

● Eurogroup   07/07/2025 21:16 | Meetings | Main results - Eurogroup, 7 July 2025   The Eurogroup in regular format discussed the euro area fiscal stance ahead of the 2026 budgets and adopted a statement. Ministers also assessed the international role of the euro and reviewed the Commission’s proposal for a Council regulation on Bulgaria’s conversion rate to the euro. The Eurogroup re-elected Paschal Donohoe as its president for the next two-and-a-half-year term. In inclusive format, ministers exchanged views on some of the outstanding political issues in the digital euro negotiations. They also received updates on the European Investment Bank’s ongoing work related to the capital markets union and the savings and investment union.

● Eurogroup

07/07/2025 21:14 | Meetings | Main results - Eurogroup, 7 July 2025   The Eurogroup in regular format discussed the euro area fiscal stance ahead of the 2026 budgets and adopted a statement. Ministers also assessed the international role of the euro and reviewed the Commission’s proposal for a Council regulation on Bulgaria’s conversion rate to the euro. The Eurogroup re-elected Paschal Donohoe as its president for the next two-and-a-half-year term. In inclusive format, ministers exchanged views on some of the outstanding political issues in the digital euro negotiations. They also received updates on the European Investment Bank’s ongoing work related to the capital markets union and the savings and investment union. ● Eurogroup   07/07/2025 21:13 | Statements and remarks | Remarks by Paschal Donohoe following the Eurogroup meeting of 7 July 2025   We have just concluded a very busy and productive Eurogroup meeting. I am very honoured and humbled to have received today the support of my colleagues to continue my work as President of the Eurogroup. I thank all my colleagues for their trust and confidence, I will continue my work, as I promised in 2020, ensuring that all voices, and all positions are taken into account. My priority for the next term is to further strengthen our common currency area and to facilitate practical results in our key workstreams, from budgetary coordination to the digital euro and the savings and investment union. I will continue to be guided by the principles of efficiency and unity in pursuing our priorities of ensuring resilience - making the best use of opportunities, both in terms of the opportunities the single euro affords us by acting together, but also the opportunities that are always there to build compromises, to overcome differences, and to improve lives. As usual for this time of the year, we held an important discussion on budget policy coordination ahead of the preparation of our budgets for 2026. Budget sustainability has been central to our policies and that remains clear from our discussion today and from the statement that we have issued. While we work to deliver on our security related commitments, we will continue to focus on sustainability and ensure a careful and prudent application of the national escape clause. We will also focus on ensuring that our security spending is efficient and productive. Today, we underlined that, except for defence spending, fiscal restraint remains appropriate, and we are committed to implementing our medium-term plans. We expect a broadly neutral budget stance in the euro area in 2026. Overall, this seems appropriate in our current economic environment. Our work on the coordination of budget policies in the euro area continues, and in December, we will be turning to our regular review of draft budget plans and the euro area fiscal stance. The conversation will also continue on the necessary reprioritisation within our budgets to accommodate defence spending in the medium-term. We then moved from budget matters to monetary issues. Today, we had a forward-looking and very topical discussion on the international role of the euro. Since it was created, the euro has been the world's second global currency, and in that role, it has remained broadly stable in 2024. This reflects the trust in our institutions, the strength of our economic fundamentals, and our collective commitment to stability. But at the same time, we're operating in a changing economic and political environment, with a clear trend towards diversification visible in markets. So, in our discussion today, we agreed on the need to closely monitor recent developments and assess their implications for the euro. We must continue to make progress on key policy areas such as deep and liquid capital markets, sufficient and resilient payment systems, and credible institutions. This work will contribute to the effectiveness of the euro and ultimately support the welfare of our societies. The international role of the euro is also a reflection of the strength of the euro area economy, and the euro area is still expanding. Last month, I announced good news on the green light for euro adoption by Bulgaria, and today we continued with the process to turn that into reality, confirming the conversion rate from the lev to the euro, that will be fixed definitively in the Ecofin Council tomorrow. We then welcomed our non-euro colleagues to continue our meeting in the Eurogroup inclusive format. We held a constructive and forward-looking discussion on the digital euro. We made some good progress. Today's exchange showed growing political convergence on some key topics. There was a really good tone: there's a strong interest in finding a balanced and workable approach to holding limits. This is an important signal of commitment to the digital euro. We have a bit more work to do on this specific topic in the coming weeks, with a view to refining the political guidance in the Eurogroup which we are aiming to do in our September meeting, and supporting further progress on this file under the Danish presidency. In the context of the follow-up to the Eurogroup statement on the future of the CMU we were joined by President Calviño of the EIB to discuss their initiatives to support the savings and investment union. The EIB is such an important player in helping innovative businesses to grow in Europe, which is one of the key objectives of the work on CMU at the Eurogroup. Ministers heartily welcomed the EIB's commitment to CMU and to savings and investment union objectives. As a next step, in autumn, we'll take stock of the performance of EU capital markets, of the measures in EU countries to complement EU level initiatives, which were as much part of our combined efforts as were agreed in our statement. ● General Secretariat of the Council   Think Tank reports on Russia’s war of aggression against Ukraine   How to end the Russia-Ukraine war; Ukraine's operation Spider's Web and the future of drone warfare; policy options for Ukrainians under EU temporary protection in 2025; sanctions at a crossroads as regards EU leadership amid an uncertain transatlantic alliance; the dilemmas of seizing Russia's money for Ukraine; the Black Sea region and the impact of the war and the limits of Putin's ambitions are some of the topics covered in the present update.   ● Council of the EU   08/07/2025 09:46 | Media advisory | Press briefing - Agriculture and Fisheries Council of 14 July 2025   The press briefing ahead of the Agriculture and Fisheries Council will take place on Wednesday, 9 July 2025 at 14.00. 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 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: Wednesday, 9 July 2025, 13.00 Further instructions will be sent to all registered participants shortly after the deadline.   ● Council of the EU   08/07/2025 13:11 | Press release | Central African Republic: Council extends EU military training mission until 19 September 2026   The Council has today decided to extend the mandate of the European Union Military Training Mission in the Central African Republic (EUTM RCA) until 19 September 2026. The EUTM RCA is a military mission that focuses on supporting the Central African authorities through strategic advice, and the education of Non-Commissioned Officers and Officers of the central African forces (FACA). Since July 2016, the EUTM RCA, through a reinforced operational training structure, has trained and educated almost 9 500 FACA personnel and promoted the build-up of a modernised, effective, credible, ethnically balanced and democratically accountable FACA. Together with the extension of its mandate, the Council also decided to allocate €11 400 000 as a reference amount for this period. EUTM RCA was established in April 2016 to contribute to reform the Central African Republic defence sector, in close coordination with other international support missions such as the United Nations Multidimensional Integrated Stabilisation Mission in the Central African Republic (MINUSCA) and the EU Advisory Mission (EUAM). EUTM RCA is currently headed by Brigadier General Nicolae-Gabriel Oros. EU training mission in the RCA (EEAS)

● Council of the EU

08/07/2025 13:07 | Press release | Council activates flexibility in EU fiscal rules for 15 member states to increase defence spending   The Council today activated the national escape clause under the Stability and Growth Pact (SGP) for 15 member states to help facilitate their transition to higher defence spending at national level while ensuring debt sustainability. The member states concerned are Belgium, Bulgaria, Croatia, Czechia, Denmark, Estonia, Finland, Greece, Hungary, Latvia, Lithuania, Poland, Portugal, Slovakia and Slovenia. “At this critical juncture, investment in our defence capabilities must remain our top priority. Today’s activation of the national escape clause will allow member states to ramp up defence spending while maintaining sustainable public finances.” — Stephanie Lose, Danish minister for economic affairs The clause covers a period of four years and a maximum of 1.5% of GDP in flexibility. In practice, this activation means that the Commission and the Council may decide not to open a new excessive deficit procedure for these 15 member states, even though they exceed the maximum net expenditure path as approved by the Council, provided that this excess is due to increased defence spending. For all other expenses, member states remain bound by the budgetary rules and must remain committed to the implementation of the revised economic governance framework irrespective of the clause’s activation. The use of this flexibility should contribute substantially to bolstering the defence and security capabilities of the European Union and the protection of citizens. It will also reinforce the EU’s overall defence readiness, reduce strategic dependencies, address critical capability gaps and strengthen the European defence technological and industrial base across the Union. Background All member states are committed to the build-up of necessary defence capabilities in the EU, as recalled in the European Council conclusions on European defence of 6 March 2025. The reformed EU economic governance framework allows for member states to make use of flexibility, where exceptional circumstances outside the control of that member state have a major impact on its public finances, while safeguarding fiscal sustainability over the medium term. Russia’s war of aggression against Ukraine and its threat to European security constitute such exceptional circumstances. In this context, Belgium, Bulgaria, Croatia Czechia, Denmark, Estonia, Finland, Germany, Greece, Hungary, Latvia, Lithuania, Poland, Portugal, Slovakia and Slovenia decided to request the activation of the national escape clause. Germany’s request can be assessed once it has finalised its medium-term fiscal-structural plan. In other member states, already planned build-up of defence capabilities is also underway. The Council stands ready to act on possible requests to activate the national escape clause by additional member states. Belgium Bulgaria Czechia Denmark Estonia Greece Finland Croatia Hungary Lithuania Latvia Poland Portugal Slovakia Slovenia   08/07/2025 13:07 | Δελτίο τύπου | Το Συμβούλιο ενεργοποιεί την ευελιξία στους δημοσιονομικούς κανόνες της ΕΕ για 15 κράτη μέλη με σκοπό την αύξηση των αμυντικών δαπανών   Το Συμβούλιο ενεργοποίησε σήμερα τη ρήτρα εθνικής διαφυγής βάσει του Συμφώνου Σταθερότητας και Ανάπτυξης (ΣΣΑ) για 15 κράτη μέλη, προκειμένου να διευκολυνθεί η μετάβασή τους σε υψηλότερες αμυντικές δαπάνες σε εθνικό επίπεδο, διασφαλίζοντας παράλληλα τη βιωσιμότητα του χρέους. Τα ενδιαφερόμενα κράτη μέλη είναι το Βέλγιο, η Βουλγαρία, η Κροατία, η Τσεχία, η Δανία, η Εσθονία, η Φινλανδία, η Ελλάδα, η Ουγγαρία, η Λετονία, η Λιθουανία, η Πολωνία, η Πορτογαλία, η Σλοβακία και η Σλοβενία. «Σε αυτή την κρίσιμη καμπή, οι επενδύσεις στις αμυντικές μας δυνατότητες πρέπει να παραμείνουν η ύψιστη προτεραιότητά μας. Η σημερινή ενεργοποίηση της ρήτρας εθνικής διαφυγής θα επιτρέψει στα κράτη μέλη να αυξήσουν τις αμυντικές δαπάνες διατηρώντας παράλληλα βιώσιμα δημόσια οικονομικά.» — Στέφανι Λόζε, υπουργός Οικονομικών της Δανίας Η ρήτρα καλύπτει περίοδο τεσσάρων ετών και μέγιστο ποσοστό ευελιξίας 1,5% του ΑΕΠ . Στην πράξη, αυτή η ενεργοποίηση σημαίνει ότι η Επιτροπή και το Συμβούλιο μπορούν να αποφασίσουν να μην ανοίξουν νέα διαδικασία υπερβολικού ελλείμματος για αυτά τα 15 κράτη μέλη, ακόμη και αν υπερβούν τη μέγιστη πορεία καθαρών δαπανών όπως εγκρίθηκε από το Συμβούλιο, υπό την προϋπόθεση ότι η υπέρβαση αυτή οφείλεται σε αυξημένες αμυντικές δαπάνες. Για όλα τα άλλα έξοδα, τα κράτη μέλη παραμένουν δεσμευμένα από τους δημοσιονομικούς κανόνες και πρέπει να παραμείνουν προσηλωμένα στην εφαρμογή του αναθεωρημένου πλαισίου οικονομικής διακυβέρνησης, ανεξάρτητα από την ενεργοποίηση της ρήτρας. Η χρήση αυτής της ευελιξίας θα πρέπει να συμβάλει σημαντικά στην ενίσχυση των αμυντικών και ασφαλιστικών ικανοτήτων της Ευρωπαϊκής Ένωσης και στην προστασία των πολιτών . Θα ενισχύσει επίσης τη συνολική αμυντική ετοιμότητα της ΕΕ, θα μειώσει τις στρατηγικές εξαρτήσεις, θα αντιμετωπίσει τα κρίσιμα κενά σε δυνατότητες και θα ενισχύσει την ευρωπαϊκή αμυντική τεχνολογική και βιομηχανική βάση σε ολόκληρη την Ένωση. Φόντο Όλα τα κράτη μέλη έχουν δεσμευτεί για την ανάπτυξη των απαραίτητων αμυντικών δυνατοτήτων στην ΕΕ, όπως υπενθυμίζεται στα συμπεράσματα του Ευρωπαϊκού Συμβουλίου για την ευρωπαϊκή άμυνα της 6ης Μαρτίου 2025. Το αναθεωρημένο πλαίσιο οικονομικής διακυβέρνησης της ΕΕ επιτρέπει στα κράτη μέλη να κάνουν χρήση της ευελιξίας, όταν εξαιρετικές περιστάσεις εκτός του ελέγχου του εν λόγω κράτους μέλους έχουν σημαντικό αντίκτυπο στα δημόσια οικονομικά του, διασφαλίζοντας παράλληλα τη δημοσιονομική βιωσιμότητα μεσοπρόθεσμα. Ο επιθετικός πόλεμος της Ρωσίας κατά της Ουκρανίας και η απειλή της για την ευρωπαϊκή ασφάλεια αποτελούν τέτοιες εξαιρετικές περιστάσεις. Στο πλαίσιο αυτό, το Βέλγιο, η Βουλγαρία, η Κροατία, η Τσεχία, η Δανία, η Εσθονία, η Φινλανδία, η Γερμανία, η Ελλάδα, η Ουγγαρία, η Λετονία, η Λιθουανία, η Πολωνία, η Πορτογαλία, η Σλοβακία και η Σλοβενία ​​αποφάσισαν να ζητήσουν την ενεργοποίηση της εθνικής ρήτρας διαφυγής. Το αίτημα της Γερμανίας μπορεί να αξιολογηθεί μόλις οριστικοποιήσει το μεσοπρόθεσμο δημοσιονομικό-διαρθρωτικό της σχέδιο. Σε άλλα κράτη μέλη, βρίσκεται επίσης σε εξέλιξη η ήδη προγραμματισμένη ανάπτυξη αμυντικών δυνατοτήτων. Το Συμβούλιο είναι έτοιμο να ενεργήσει σχετικά με πιθανά αιτήματα για την ενεργοποίηση της εθνικής ρήτρας διαφυγής από πρόσθετα κράτη μέλη. Βέλγιο Βουλγαρία Τσεχική Δημοκρατία Δανία Εσθονία Ελλάδα Φινλανδία Κροατία Ουγγαρία Λιθουανία Λατβία Πολωνία Πορτογαλία Σλοβακία Σλοβενία   ● Council of the EU   08/07/2025 12:59 | Press release | European Semester 2025: Council adopts country-specific recommendations   Today, the Council adopted its country-specific recommendations (CSRs) on the economic, social, employment, structural and budgetary policies of each member state. This step is part of the 2025 European Semester process, which enables member states to coordinate their economic, employment and fiscal policies. This year, member state recommendations pay particular focus to the issues of competitiveness and security. Moreover, the first recommendation in each CSR invites each member state to reinforce its overall defence spending and readiness in line with the European Council conclusions of 6 March 2025. In line with the EU’s recently revised economic governance framework, the fiscal CSRs ask member states to adhere to the maximum net expenditure growth rate determined by the Council. Member states under an Excessive Deficit Procedure (EDP) are asked to considerably tighten their fiscal policies to ensure that their net expenditure stays within the corrective paths under the EDP. To maximise the impact of EU funds, member states are also recommended to ensure the full implementation of the Recovery and Resilience Facility by the end of August 2026 deadline, and to implement cohesion policy programmes. Macroeconomic imbalance procedure Also under the European Semester, the Council today approved conclusions on the 2025 in-depth reviews under the macroeconomic imbalance procedure (MIP). The MIP aims to identify, prevent and address the emergence of potentially harmful macroeconomic imbalances that could adversely affect economic stability in a particular member state, the euro area, or the EU as a whole. Background Introduced in 2011, the European Semester enables the EU member states to coordinate their economic, fiscal and employment policies throughout the year and address the economic challenges facing the EU. The Commission presents each country with a set of draft country-specific recommendations on their economic, social, employment, structural and budgetary policies, providing policy guidance on how to boost jobs and growth, while maintaining sound public finances. On this basis, the Council then adopts country-specific recommendations and provides explanations in cases where it does not follow the Commission’s recommendations. The Council recommendations on the economic, social, employment, structural and budgetary policies of each member state can be found via the links below: Austria Belgium Bulgaria Croatia Cyprus Czechia Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Latvia Lithuania Luxembourg Malta The Netherlands Poland Portugal Romania Slovakia Slovenia Spain Sweden Timeline: the 2025 exercise (background information) European semester (background information) How the European semester works (background information) Economic governance framework (background information) Council conclusions on the 2025 in-depth reviews under the macroeconomic imbalance procedure ● Council of the EU   08/07/2025 12:54 | Press release | Recovery and resilience fund: Council gives green light to amended plans of Austria, Belgium, Czechia, Denmark, Germany and Ireland   The Council today approved the Commission’s positive assessment of the amended recovery and resilience plans (RRPs) submitted by Austria, Belgium, Czechia, Denmark, Germany and Ireland. 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. Austria The amendments to the RRP of Austria concern 18 measures with most relating to the implementation of better alternatives than originally foreseen with a view to reducing administrative burdens for authorities and businesses. The estimated total costs of its RRP are €4.2 billion. Belgium The amendments to 13 measures in the RRP of Belgium relate for the most part to putting in place better implementation alternatives in order to reduce administrative burden. The estimated total cost of Belgium’s RRP amounts to €5.2 billion. Czechia The revisions requested by Czechia concern 83 measures. Reasons for the amendments include reducing administrative burden, frontloading of certain reforms and increasing the ambition of some measures. The request also introduces a new measure to provide more data management equipment for building offices and municipalities. The estimated total cost for the RRP of Czechia amounts to €8.8 billion. Denmark The Danish amendments concern 15 measures with most changes reflecting improved implementation measures to reduce administrative burden. One measure related to carbon rich soils will be scaled down due to unforeseen delays, while another related to vehicle taxation will instead be scaled up. The estimated total cost of Denmark’s plan is €1.8 billion. Germany As part of its request to amend its RRP in relation to 14 measures, Germany has explained that a number of measures are partially unachievable due to market uncertainty and lack of demand, as well as supply chain disruption and delays. The estimated total cost of Germany’s RRP is €31 billion. Ireland Ireland requested amendments to five measures under its RRP. For the most part, the amendments aim to streamline the delivery of the measures and to reduce administrative burden. The plan’s estimated total costs amount to just over €1.1 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 and around €317 billion has been disbursed. Austria Belgium Czechia Denmark Germany Ireland A recovery plan for Europe (background information) The recovery and resilience facility (background information)

● Council of the EU

08/07/2025 12:49 | Press release | Sahel: Council extends regional advisory and coordination cell until 31 January 2026   The Council has today decided to extend the mandate of the regional advisory and coordination cell (RACC), within the civilian EUCAP Sahel Mali mission, until 31 January 2026. The RACC, established within EUCAP Sahel Mali, aims to support regional and cross-border cooperation in the Sahel, and strengthen the national capabilities of Burkina Faso, Chad, Mali, Mauritania and Niger. The Council decided that the extension will not incur any cost. The regional advisory cell within EUCAP Sahel Mali was established in 2019, with a command structure located in Nouakchott, Mauritania. It focuses on enhancing regional cooperation and operational capabilities in the field of defense and security, in line with the regionalisation approach of the Common Security and Defence Policy (CSDP) of the EU and in compliance with the EU Strategic Approach to women peace and security. EU regional advisory and coordination cell for the Sahel (EEAS) EUCAP Sahel Mali website (EEAS) ● Council of the EU   08/07/2025 12:44 | Press release | European Peace Facility: Council adopts assistance measure in support of Senegal   Today the Council adopted the first assistance measures under the European Peace Facility (EPF) in support of the Armed Forces of Senegal, with the objective of contributing to security and stability in West Africa. This first measure benefitting Senegal is worth €10 million over a period of 36 months. It will enhance the capabilities of the Senegalese Armed Forces to defend the territorial integrity of Senegal and to protect its civilian population against internal and external threats. Through to this support, the EU will provide key non-lethal equipment and operational infrastructure in the following fields: day-and-night land and river surveillance, intelligence gathering and force protection. This EPF measure will contribute to support the EU and Senegal’s common objective of providing an integrated response to the spill over of insecurity and instability from the Sahel to other West African countries. Background The European Peace Facility was established in March 2021 for the financing of actions under the common foreign and security policy to prevent conflicts, preserve peace and strengthen international security and stability. In particular, the European Peace Facility allows the EU to finance actions designed to strengthen the capacities of third States and regional and international organisations relating to military and defence matters. European Peace Facility (background information) EU cooperation on security and defence (background information) European Peace Facility (infographic) ● Council of the EU   08/07/2025 12:01 | Media advisory | Press briefing - Foreign Affairs Council (Trade) of 14 July 2025   The press briefing ahead of the Foreign Affairs Council (Trade) will take place on Thursday, 10 July 2025 at 14.00. 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 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 the previous press events of Trade meetings do not need to do it again. Deadline for registration: Thursday, 10 July 2025, 13.00.  Further instructions will be sent to all registered participants shortly after the deadline. ● Council of the EU   08/07/2025 14:04 | Press release | Bulgaria ready to use the euro from 1 January 2026: Council takes final steps   The Council today adopted the final three legal acts required for Bulgaria to introduce the euro on 1 January 2026. This completes the process for Bulgaria to become the 21st member of the euro area and to benefit from using the EU’s common currency, the euro, as of next year. “From today, Bulgaria takes its place as the 21st member of the eurozone. This marks the culmination of a thorough process towards Bulgaria’s accession, comprising rigorous analysis and intensive preparation. I warmly congratulate Bulgaria and the Bulgarian people on this tremendous achievement.” — Stephanie Lose, Danish minister for economic affairs One of the three legal acts sets the conversion rate between the euro and the Bulgarian lev at 1.95583 lev per 1 euro. This corresponds to the current central rate of the lev in the exchange rate mechanism (ERM II). Council decision on the adoption of the euro by Bulgaria Council regulation adding Bulgaria to the list of euro area member states Council regulation establishing the Bulgarian lev’s conversion rate to the euro Euro area member states recommend that Bulgaria become the 21st member of the euro area (press release, 19 June 2025) Statement by the President of the Eurogroup, 4 June 2025 The euro (background information) Joining the euro area (background information) ● Council of the EU   08/07/2025 15:08 | Press release | Stability and Growth Pact: Council opens new excessive deficit procedure for Austria and revises the corrective path for Romania   The Council today opened a new excessive deficit procedure (EDP) concerning Austria and revised Romania’s net expenditure path in view of its lack of effective action under its EDP, originally opened in 2020. The EDP is a mechanism designed to ensure that EU member states maintain or return to discipline in their governments’ budgets. The Council also today endorsed the maximum net expenditure paths for Austria and Lithuania in the period ahead, as laid out in those countries’ national medium-term fiscal-structural plans. Austria The Council’s decision to open an EDP today is warranted given Austria’s 4.7% budget deficit in 2024. In parallel to its decision, the Council also approved a recommendation to Austria outlining the net expenditure path and timeline that should be followed to put an end to its excessive deficit by 2028. In that vein, Austria should therefore take effective action and present the necessary measures to reduce its deficit by 15 October 2025. Austria should ensure that its nominal growth rate of net expenditure does not exceed 2.6% in 2025, 2.2% in 2026, 2.2% in 2027 and 2.0% in 2028. Romania The Council’s revised recommendation to Romania under its ongoing EDP follows the Council’s 20 June 2025 decision establishing that Romania had not taken effective action in response to previous Council recommendations under the EDP. Romania should thus take effective action and present the necessary measures to reduce its deficit by 15 October 2025 and put an end to its EDP by 2030. It should ensure that its nominal growth rate of net expenditure does not exceed 2.8% in 2025, 2.6% in 2026, 4.6% in 2027, 4.4% in 2028, 4.2% in 2029 and 4.0% in 2030. Net expenditure paths While the EDP forms part of the corrective arm of the Stability and Growth Pact, member states must also prepare a fiscal adjustment path as part of their medium-term fiscal structural plans spanning four or five years under the preventive arm. Further recommendations made by the Council today set the maximum net expenditure paths for Austria and Lithuania - key elements of their plans. The net expenditure paths as set by the Council constitute the most important operational indicator for fiscal surveillance at EU level. The approval of this budgetary constraint will frame Austria and Lithuania’s national fiscal policies for the next four to five years and will help determine whether they are on a path towards maintaining or achieving healthy finances. The maximum net expenditure path for Austria is aligned with that set out under its EDP. Furthermore, given Austria’s request for an extension of the fiscal adjustment period to seven years, the Council also endorsed the set of reform and investment commitments underpinning this extension. Now that the Council has adopted its recommendations, the member states in question will have certainty as regards the budgetary paths they will follow in the coming years and can plan accordingly. On 21 January 2025 and 20 June 2025, the Council adopted similar recommendations pertaining to 21 and two other member states respectively. Background 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. If an excessive deficit occurs in a member state, the aim of the EDP is to prompt its correction by putting member states under enhanced scrutiny and providing recommendations for them to take effective action to correct the deficit. Ultimately, the goal is to strengthen member states’ fiscal sustainability. Once it launches an EDP based on a recommendation by the Commission, the Council also makes 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. In its recommendation, the Council requests that the member state implements a corrective net expenditure path which ensures that the general government deficit is brought and maintained below the 3% of GDP reference value within the deadline set in the recommendation. Council decision on the existence of an excessive deficit procedure in Austria Council recommendation with a view to bringing an end to the situation of an excessive deficit in Austria Council recommendation with a view to bringing an end to the situation of an excessive deficit in Romania Council recommendation endorsing the national medium-term fiscal-structural plan of Austria Council recommendation endorsing the national medium-term fiscal-structural plan of Lithuania Stability and growth pact: Council decides on way ahead for Belgium and Romania under the excessive deficit procedure (press release, 20 June 2025 Economic governance: Council approves fiscal expenditure paths for Belgium and Bulgaria (press release, 20 June 2025) Economic governance framework: Council sets fiscal expenditure paths for 21 member states (press release, 21 January 2025) Excessive deficit procedure (background information) Economic governance framework (background information) ● Council of the EU   08/07/2025 15:38 | Meetings | Main results - Economic and Financial Affairs Council, 8 July 2025   The Council today adopted the final three legal acts which pave the way for Bulgaria to introduce the euro on 1 January 2026. It also activated the national escape clause under the Stability and Growth Pact (SGP) for 15 member states to help facilitate their transition to higher defence spending at national level, while ensuring debt sustainability. It opened a new excessive deficit procedure (EDP) concerning Austria and revised Romania’s net expenditure path in view of its lack of effective action under its EDP, originally opened in 2020. Ministers also held a policy debate on the single currency package and exchanged views on the Commission’s recent proposal to review the EU’s securitisation framework.

● European Council   08/07/2025 15:08 | Press release | EU-African Union to deepen cooperation at 24-25 November summit in Angola   On 24-25 November 2025, the leaders of the 27 European Union (EU) member states and the 55 countries of the African Union (AU) will meet in Luanda, Angola for the seventh EU-African Union summit. This multilateral summit will be co-chaired by the President of Angola, João Lourenço, and the President of the European Council, António Costa. The EU will also be represented by the President of the European Commission, Ursula von der Leyen. Marking 25 years of EU-AU partnership, the Summit comes at a pivotal time as Angola holds the rotating African Union presidency. Leaders will focus on strengthening cooperation in key areas such as peace and security, economic integration, trade, multilateralism, green development, digitalisation, migration, mobility and human development. “A strong, balanced, and forward-looking EU-Africa partnership is our goal for this milestone summit. The EU remains a reliable, predictable partner for Africa. Together, we can tackle global challenges and unlock shared opportunities.” — António Costa, President of the European Council The Summit will build on the outcomes of the recent EU-AU Ministerial held in Brussels in May 2025, where ministers reaffirmed their commitment to closer ties between the two continents—guided by shared values, mutual interests, and a joint vision for sustainable growth and stability. Background As Europe’s closest neighbour, Africa is a key geopolitical priority for the European Union. The EU is Africa’s leading partner in energy, peace and security, the green transition, trade and investment, and digital transformation. The EU is the top trading partner of African countries collectively and by far their largest export market, ahead of China, India and the United States. African countries together constitute the EU’s fourth-largest trading partner. A central part of the EU-Africa joint vision is the Global Gateway investment package. To support the common ambition for 2030, the EU decided on an investment package of at least €150 billion. The EU also supports African countries through the European Peace Facility (EPF), established in March 2021. The facility aims to help prevent conflict, build and preserve peace and strengthen international security and stability. This year, the African Union and European Union celebrate 25 years of their unique and successful partnership. The Africa-EU Partnership was formally established in 2000 at the first Africa-EU Summit in Cairo. The formal political agreement between the organisations has provided invaluable opportunities for the two continents to develop their economic, cultural and political ties. The latest (sixth) EU-AU summit took place on 17 and 18 February 2022 in Brussels where EU and AU leaders agreed on a joint vision for a renewed partnership. Sixth European Union - African Union Summit: A Joint Vision for 2030 The African Union is a continental body consisting of the 55 member states that make up the countries of the African Continent. It was officially launched in 2002 as a successor to the Organisation of African Unity (OAU, 1963-1999). More information on the African Union