Economic and Financial Affairs Council, 10 December 2024

Main results

Customs reform

The presidency informed ministers of the progress of discussions within the Council on proposals to reform the EU’s customs legislation, based on a presidency progress report. The presentation was followed by a discussion.

The Customs Union has been in place for 56 years, facilitating trade while safeguarding the safety and security of EU citizens. Its reform was a key item on the agenda of the Hungarian Presidency, aimed at enhancing efficiency and resilience in the face of an increasingly dynamic global trade environment. Discussions in the Council have advanced steadily, reflecting the Hungarian Presidency's commitment to driving progress on this technically demanding yet strategically important dossier.

Mihály Varga, Hungarian minister for finance

• EU Customs Reform (European Commission)
• Watch the public session recording

Energy taxation

Ministers held a policy debate on the revision of the energy taxation directive and welcomed the progress made so far on this proposal.

They shared the view that the negotiations are generally moving towards striking a balance between the climate ambition and the specificities of the member states, while keeping in mind the competitiveness of the EU.

At the same time, some ministers called for a stronger environmental orientation, while others recalled the importance of member states’ specific circumstances.

• Presidency note on the revision of the Energy Taxation Directive
• Fit for 55 (background information)
• How EU tax policy works (background information)
• Watch the public session recording

Economic governance framework

In the context of the implementation of the economic governance review, the Commission presented to ministers draft Council recommendations on the medium-term fiscal-structural plans of 21 member states.

The national medium-term fiscal-structural plans contain net expenditure paths that have to be endorsed by the Council. Ministers held a first exchange on the plans today. The Council will work towards adopting recommendations as soon as possible early next year.

In the context of the excessive deficit procedure, ministers had a first exchange of views on draft Council recommendations for Belgium, France, Hungary, Italy, Malta, Poland, Romania and Slovakia, on how to remedy their deficits. The Council will aim to adopt recommendations as soon as possible next year.

• Economic governance framework (background information)
• Excessive deficit procedure (background information)

Recovery and Resilience Facility

Ministers took stock of the implementation of the Recovery and Resilience Facility (RRF). The Council adopted implementing decisions approving targeted modifications submitted by Sweden, Slovenia, Denmark and Belgium to their recovery and resilience plans.

• Recovery and resilience fund: Council greenlights the amended plans of Sweden, Slovenia, Denmark and Belgium (press release, 10 December 2024)
• A recovery plan for Europe (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.

Ministers were informed about the economic and budgetary situation in Ukraine, including on the implementation of the Ukraine Facility and the implementation of the G7 agreement on a loan of $50 billion (€ 45 billion) to Ukraine to be serviced and repaid by future flows of extraordinary revenues stemming from the immobilisation of Russian sovereign assets.

• Immobilised assets: Council greenlights up to €35 billion in macro-financial assistance to Ukraine and new loan mechanism implementing G7 commitment (press release, 23 November 2024)
• EU solidarity with Ukraine (background information)
• EU response to Russia's invasion of Ukraine (background information)

European Court of Auditors’ annual report

The President of the European Court of Auditors, Tony Murphy, presented the Court’s annual report on the implementation of the budget for the financial year 2023. This is a recurring item on the agenda of the ECOFIN Council.

• European Court of Auditors’ annual report for the financial year 2023

Taxation

The Council approved the bi-annual ECOFIN report to the European Council on tax issues.

The Council also adopted conclusions on the progress achieved by the Code of Conduct Group.

Under points without discussion, the Council adopted the withholding tax directive (FASTER), which sets out safer and faster procedures to obtain double taxation relief. The directive aims to encourage cross-border investment and help fight tax fraud.

The Council also reached an agreement on a directive paving the way for the introduction of an electronic tax certificate for VAT exemptions.

• Draft Ecofin report to the European Council on tax issues
• Council conclusions on the progress achieved by the Code of Conduct Group
• Taxation: Council adopts new rules for withholding tax procedures (FASTER) (press release, 10 December 2024)
• Taxation: Council introduces electronic VAT exemption certificate (press release, 10 December 2024)
• How EU tax policy works (background information)
• Code of Conduct Group (Business Taxation) (background information)

Financial services

The Presidency presented to ministers the state of play of current legislative proposals in the field of financial services. Ministers were informed by the Commission of the state of play in implementing EU legislation in the field of financial services.

These are recurrent items on the ECOFIN agenda.

• Current legislative files in the field of financial services
• Digital finance (background information)
• What the EU is doing to deepen its capital markets (background information)