Economic and Financial Affairs Council, 12 March 2024

Main results

Social investments and reforms

Ministers of economic and financial affairs were joined by employment and social affairs ministers in a debate on social investments and reforms for resilient economies.

Clearly, productivity is a strong driver of competitiveness and we note that average productivity growth has stagnated in the EU over the last decade. Social investments and reforms are a crucial means to relaunch our productivity. Therefore, we urgently need to focus more on innovation, research and development, good education, upskilling, reskilling, and active labour market policies in the EU. Vincent Van Peteghem, Belgian Deputy Prime Minister and Minister of Finance

Ministers discussed what they considered to be the positive effects of social reforms and investments on economic growth and fiscal sustainability, and shared examples of recent employment and social reforms in their countries that had contributed to higher growth potential.

They also reflected on how cooperation between the ECOFIN and EPSCO work streams could be further enhanced to better assess the impact of social investments and reforms on economic growth, fiscal sustainability and social cohesion in the European Semester context.

• Presidency note for the joint session

Recovery and Resilience Facility

Ministers exchanged views on the state of play of the implementation of the Recovery and Resilience Facility (RRF). The Commission presented its mid-term evaluation of the RRF, taking stock of the progress achieved in implementing the facility so far.

The Council envisages to have a more extensive discussion and approve conclusions to provide steer and political impetus for the remaining implementation period of the RRF, in April.

• Commission mid-term evaluation of the RRF
• A recovery plan for Europe (background information)
• REPowerEU: energy policy in EU countries’ recovery and resilience plans (background information)

Russia’s aggression against Ukraine

The Council took note of the state of play of the economic and financial impact of Russia’s aggression against Ukraine. The Commission updated ministers on the economic and budgetary situation in Ukraine.

• EU solidarity with Ukraine (background information)
• EU response to Russia's invasion of Ukraine (background information)

G20 follow-up

The Presidency and the Commission informed ministers on the main results of the G20 meeting of Finance Ministers and Central Bank Governors of 28-29 February 2024 in São Paulo, Brazil.

The meeting was the first under the Brazilian G20 Presidency. It featured discussions on the role of economic policies in addressing inequalities, global economy, international taxation, global debt and financing for sustainable development.

• G20 website

EU budget

The Council approved its guidelines for the 2025 EU budget. The approved guidelines provide political guidance to the Commission in preparing the budget for next year.

• Budget 2025: Council agrees on guidelines for next year's EU budget (press release, 12 March 2024)
• Draft Council conclusions on the budget guidelines for 2025
• The EU’s annual budget (background information)
• European Council conclusions, 1 February 2024

The Council also adopted a recommendation on the discharge to be given to the Commission in respect of the implementation of the EU budget for 2022. The Council recommended to the European Parliament to grant the discharge.

• Draft Council recommendation on the discharge to be given to the Commission in respect of the implementation of the general budget of the European Union for the financial year 2022
• Statements
• Draft Council recommendations on the discharge to be given to the bodies set up under the TFEU and the Euratom Treaty in respect of the implementation of the budget for the financial year 2022
• Draft Council recommendations on the discharge to be given to the joint undertakings in respect of the implementation of the budget for the financial year 2022
• Draft Council recommendations on the discharge to be given to the executive agencies in respect of the implementation of the budget for the financial year 2022

Financial services

The Presidency presented the state of play of negotiations on legislative proposals in the field of financial services. The Commission informed ministers on the state of play of implementation of legislation in this field.

• Progress on current legislative proposals in the field of financial services
• Digital finance (background information)
• European capital markets (background information)

EU-Switzerland relations

The Council authorised the Commission to negotiate, on behalf of the EU, a broad package of measures with Switzerland as the basis for future EU-Switzerland relations. It also approved the corresponding directives for the negotiation.

The aim of the negotiation is to modernise and deepen bilateral relations between the EU and Switzerland, to ensure fair competition between EU and Swiss companies operating within the internal market, and to guarantee the protection of the rights of EU citizens in Switzerland.

• EU-Switzerland: Council adopts mandate for negotiations on future relationship (press release, 12 March 2024)