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Economic and Financial Affairs Council, 21 June 2024
Main results
Russia’s aggression against Ukraine
The Council exchanged views on the state of play of the economic and financial impact of Russia’s aggression against Ukraine.
Ministers were informed about the economic and budgetary situation in Ukraine and on the implementation of the Ukraine Facility. With a capacity of €50 billion, the Ukraine Facility is currently the main vehicle for providing funding for Ukraine. Serhiy Marchenko, the Ukrainian minister of finance joined the discussion via videocall.
Ministers also discussed the latest G7 decision to make available from 2025 onwards approximately $50 billion by leveraging the extraordinary revenues stemming from the immobilisation of Russian sovereign assets.
Ministers took note of the need to operationalise this decision with a view to allowing disbursements before year-end. The presidency mandated the Economic and Financial Committee to advance work on the concept, while awaiting proposals from the Commission.
The EU continues to stand by Ukraine. The G7 leaders have taken the important decision to use the revenues stemming from the immobilisation of Russian assets to support Ukraine. Today we had a first discussion on how the EU will operationalise this important task. It will be followed by another discussion at leaders level at the European Council next week and based on that first guidance, the technical work will rapidly follow. The EU is fully committed in this process.
Vincent Van Peteghem, Belgian Deputy Prime Minister and Minister of Finance
The Commission presented to the Council the 2024 European Semester Spring Package. The package includes country-specific recommendations, which provide guidance to member states on their economic, social, employment, structural and macroeconomic policies, and an assessment of member states’ macroeconomic imbalances.
The Commission also identified member states which ran an excessive general government deficit in 2023. Ministers took note of the elements of the Spring Package and shared their initial views, pending a more detailed analysis in the July ECOFIN Council.
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 Council approved a draft report to the European Council on tax issues. The report provides an overview of the progress achieved in the Council during the term of the Belgian Presidency (January to June 2024), as well as an overview of the state of play of the most important items under negotiation in the area of taxation.
UN Framework Convention on International Tax Cooperation
Under other items, the presidency informed ministers about work carried out in the ad hoc committee to draft terms of reference for a UN Framework Convention on International Tax Cooperation.
The UN General Assembly established, under resolution 78/230 of 22 December 2023, an ad hoc committee to draft the terms of reference for a UN Framework Convention on International Tax Cooperation by August 2024.
The Council took note of a presidency information note on the state of play of discussions on the reform of the customs union and other legislative and non-legislative activities in the area of the EU customs union.
The customs reform sets a modern vision for EU customs so that customs authorities in the EU are properly equipped for stopping non-compliant goods, collecting more customs duties and carrying out adequate controls without putting excessive burden on authorities and traders.
The Council also approved without discussion the general EU positions, that include Negotiating Frameworks, for the accession negotiations with Ukraine and Moldova.
This paves the way for the first Accession Conferences with these two candidate countries on 25 June 2024.
