Economic and Financial Affairs Council

Economic and Financial Affairs Council, 14 May 2024

Main results

Withholding taxes

The Council reached an agreement (general approach) on the Council Directive on faster and safer relief of excess withholding taxes (FASTER).

Aligning our tax relief procedures is essential if we want to improve the functioning of the capital markets union. I’m glad we have found an agreement on this important proposal, which will also help to fight tax fraud much more efficiently. It will make investing in other countries easier and hopefully encourage retail investors in particular to invest on European financial markets, which will eventually benefit the whole economy.

Vincent Van Peteghem, deputy prime minister and minister of finance of Belgium

VAT in the digital age

The Council exchanged views, making progress towards an agreement, on the value added tax (VAT) in the digital age package, which aims to tackle VAT fraud, support businesses and promote digitalisation.

The package sets out to modernise reporting obligations for VAT purposes by standardising the information that needs to be submitted by taxable persons on each transaction and by imposing the use of e-invoicing for cross-border transactions, which would contribute to the fight against VAT fraud.

It seeks to address the challenges of the platform economy by enhancing the role of platforms in the collection of VAT when they facilitate the supply of short-term accommodation rental or passenger transport services.

The package also aims to make it possible to register for VAT purposes only once for all EU member states, by expanding and improving the functioning of the existing one-stop shop systems and reverse charge mechanisms.

Recovery and Resilience Facility

Ministers exchanged views on the state of play of the implementation of the Recovery and Resilience Facility (RRF).

The Council adopted implementing decisions approving the modified recovery and resilience plans submitted by Italy and Spain.

The RRF is the EU’s large-scale financial support programme in response to the challenges the 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 COVID-19 pandemic.

Russia’s aggression against Ukraine

Ministers discussed the state of play of the economic and financial impact of Russia’s aggression against Ukraine.

Sergii Marchenko, the Minister of Finance of Ukraine participated in the discussion via video-link.

Ministers discussed the state of advancement of the implementation of the Ukraine Facility.

Ministers took note of the progress made by the Council with regard to extraordinary windfall profits emanating from immobilized Russian assets.

Under items without discussion, the Council adopted a Council implementing decision on the assessment of the Ukraine plan.

Based on the Commission’s assessment, the Council concluded that Ukraine fulfils the precondition for support under the Ukraine Facility. This paves the way for regular and predictable financial support to Ukraine's recovery, reconstruction, and modernisation over the next four years.

The Ukraine Facility will provide predictable financial support of a total of € 50 billion for Ukraine over the 2024-2027 period.

Ageing

The Council approved conclusions on the fiscal sustainability challenges arising from ageing.

The conclusions draw on the main findings of the 2024 ageing report prepared by the European Commission and the Economic Policy Committee (EPC). The report covers age-related public expenditure (e.g. pensions and health care).

The Council in its conclusions reaffirmed the need to further address the economic and budgetary consequences of ageing, including by adopting sound public finances, raising employment rates, and adapting pension and health care systems to these challenges.

G20

The presidency and the Commission informed ministers about the outcome of the G20 finance ministers’ and central bank governors’ meeting that took place on 17-18 April 2024 and the spring meetings of the International Monetary Fund (IMF).

Financial literacy

The Council approved conclusions on financial literacy that aim to contribute to delivering the capital markets union.

Strengthening people’s financial literacy is of utmost importance for building a more ambitious, inclusive and resilient Capital Markets Union. I am pleased that the process we started at our informal ECOFIN in Ghent in February 2024 has now resulted in Council conclusions. Financial literacy is of utmost importance if we wish to channel dormant savings towards productive investment projects. The better educated people are about their personal finances, the more likely they are to make the best financial decisions for themselves and for society at large.

Vincent Van Peteghem, deputy prime minister and minister of finance of Belgium

The conclusions give guidance to the Commission and the member states on how to improve citizens’ knowledge and understanding of finance, in order to help them make more informed financial choices and encourage them to invest on European financial markets.

The conclusions follow-up on ministers’ discussions in the informal ECOFIN meeting in Ghent in February 2024.

Financial services

The presidency presented the state of play of legislative proposals in the field of financial services. This is a recurrent item on the ECOFIN agenda.

Climate coalition

Under other business, the presidency and the Dutch finance minister presented the 2024-2025 strategic work programme of the Coalition of Finance Ministers for Climate Action and informed ministers about the outcome of the 11th ministerial meeting of the coalition that took place on 17 April during the IMF Spring meeting.

Asylum and migration pact

The Council adopted a landmark reform of the European asylum and migration system. The Council adopted 10 legislative acts, which establish a rulebook that will help to orderly manage arrivals of irregular migrants, create efficient and uniform asylum procedures and ensure a fair burden sharing between member states.

Macroeconomic dialogue at political level (MEDPOL)

The current and two incoming presidencies (Belgium, Hungary and Poland) brought together the social partners, the European Central Bank, the President of the Eurogroup and the Commission for the twice-yearly macro-economic dialogue at political level on 13 May.

The meeting offered the opportunity for social partners to express their views on:

the review of current economic conditions, outlook and appropriate policy responses
strengthening the economic base: challenges and opportunities, in particular with a focus on competitiveness aspects

Macroeconomic dialogue with the social partners on 13 May 2024 (press release, 13 May 2024)

Economic and financial dialogue

An economic and financial dialogue took place in the margins of the meeting on 14 May.

The current and two incoming presidencies (Belgium, Hungary and Poland) brought together the finance ministers and central bank governors of Albania, Bosnia and Herzegovina, Georgia, Kosovo¹, Moldova, Montenegro, North Macedonia, Serbia, Türkiye and Ukraine, as well as representatives of the Commission and the European Central Bank.

For the first time, Georgia, Moldova and Ukraine participated in this meeting. Ukraine participated as an observer in order to avoid the duplication of work already carried out in the context of the Ukraine Facility.

The aim of the dialogue is to familiarise participants with the close coordination of economic policies among EU member states through the European Semester.

Ministers aprroved joint conclusions of the Economic and Financial Dialogue between the EU and the Western Balkans Partners, Türkiye, Georgia, Republic of Moldova and Ukraine.

¹ This designation is without prejudice to positions on status, and is in line with UNSCR 1244/1999 and the ICJ Opinion on the Kosovo declaration of independence

Meeting files

Preparatory documents

Outcome documents

List of participants

Meeting voting results

Press releases

Press information

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