Economic and Financial Affairs Council, 24 May 2022

Main results

Economic and financial consequences of Russia’s military aggression against Ukraine

The Council had an exchange of views on the economic and financial aspects of Russia’s military aggression against Ukraine. Faced with a deteriorating economic situation due to the war and rising inflation, ministers discussed the coordination of economic policy responses. They also exchanged views on the European response to Ukrainian financial needs, including possible additional macro-financial assistance from the EU. In addition, they were given a state-of-play by the European Commission  on the implementation of economic and financial sanctions.

EU economy and finance ministers will continue to follow these developments closely.

• Timeline - EU restrictive measures against Russia over Ukraine (background information)
• EU restrictive measures against Russia over Ukraine (since 2014) (background information)

Economic recovery in Europe

Ministers took stock of the implementation of the Recovery and Resilience Facility (RRF), following a presentation by the European Commission on the state of play.

The RRF is the EU’s programme of large-scale financial support in response to the challenges the pandemic has posed to the European economy. The facility’s €672.5 billion are used to support the reforms and investments outlined in the member states’ recovery and resilience plans.

• A recovery plan for Europe (background information)

The European Commission also presented its RePowerEU plan which was published on 18^th of May, which was followed by a discussion on structural solutions to the energy crisis.

Capital Markets Union: European long-term investment funds (ELTIFs)

The Council adopted its position on a proposed modification of the regulation on European long-term investment funds (ELTIFs) in order to make these investment funds more attractive. This proposal is part of the Capital Markets Union (CMU) package, a plan to create a single market for capital in order to get investments and savings flowing across all member states for the benefit of citizens, businesses and investors.

The ELTIF regulatory framework sets out detailed fund rules on eligible assets and investments, diversification and portfolio composition, leverage limits and marketing. ELTIFs are the only type of funds dedicated to long-term investments which can be distributed on a cross-border basis to both professional and retail investors.

• European long-term investment funds: Council adopts its position (press release, 24 May 2022)
• Capital Markets Union (background information)

Financial services legislation

The presidency updated ministers on legislative proposals in the field of financial services.

• Banking union (background information)
• Capital markets union (background information)
• Digital finance (background information)

G20

The Presidency and the Commission debriefed ministers on the results of the G20 meeting of finance ministers and central bank governors which took place on 20 April 2022 in Washington DC under the Indonesian G20 presidency.

• Ministers of finance and governors of central banks of G20 countries work together on solutions on the current global economic challenges (G20 press release)

Other items

Wise persons group on challenges facing the Customs Union

The Commission presented to ministers the recommendations of its group of wise persons on challenges facing the Customs Union.

• WPG website

Europol

The Council adopted a regulation amending the Europol regulation. This text entrusts the agency with new tasks, strengthening its capacity to support member states in combating new criminal threats and modi operandi.

• Europol: Council adopts legislation entrusting new tasks to the agency (press release 24 May 2022)

Trade liberalisation between the EU and Ukraine

The Council adopted a regulation allowing for temporary trade liberalisation and other trade concessions with regard to certain Ukrainian products. Thanks to these measures the EU will be able to significantly support Ukraine's economy.

• Ukraine: Council adopts temporary trade liberalisation with Ukraine (press release 24 May 2022)

The Council also adopted without discussion the items that figure in the lists of legislative and non-legislative A items.