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Economic and Financial Affairs Council, 10 October 2025
Main results
We have had productive discussions on Ukraine support, issues related to European competitiveness, own European resources, and much more. We had good discussions on new EU support for Ukraine, the reparations loan to Ukraine based on frozen Russian assets that Ukraine will only pay back if and when Russia pays for the damages caused by its war in Ukraine. There was broad support to continue work on the model.
This presidency strongly supports it as the best way forward. After today, we will continue working on the questions that have to be clarified, and the European Council will then discuss the model later this month. The presidency is ready to take forward any subsequent concrete proposal by the Commission as a matter of highest priority.
Stephanie Lose, minister for economic affairs of Denmark
Tobacco taxation
The Commission presented its recent proposal to update the rules regarding the structure and minimum rates of excise duty applied to tobacco and tobacco-related products in the EU (the tobacco taxation directive).
The proposed revision aims to extend the scope of products covered to include new tobacco and nicotine products, as well as increase minimum excise duty rates to support public health objectives and align fiscal policy with current market dynamics. During the subsequent exchange of views, ministers outlined their initial positions on the proposal.
The world health organisation has urged governments everywhere to step up tobacco control. They warn that new products, such as e-cigarettes and nicotine pouches, are fueling a new wave of nicotine addiction. The Danish presidency takes these concerns very seriously. We believe that advancing this proposal is essential in order to protect public health and reduce cross-border shopping of tobacco and nicotine products. Safeguarding the health of young people in Europe is one of our most important jobs.
Stephanie Lose, minister for economic affairs of Denmark
Also in public session, ministers heard a presentation on the Commission’s proposal putting forward five possible new own resources for the EU budget and took part in an exchange of views on the topic.
The Council adopted a recommendation endorsing the maximum net expenditure path for Germany over the next five years.
At the same time, the Council activated the national escape clause under the stability and growth pact (SGP) for Germany to help it transition to higher defence spending at national level while ensuring debt sustainability.
The Council confirmed the EU list of non-cooperative jurisdictions for tax purposes without changes. The list consists of the same 11 jurisdictions as before.
Tax incentives to support the clean industrial deal
The Council approved conclusions on tax incentives to promote clean technologies and industry, as part of the EU’s clean industrial deal.
In its conclusions, the Council stresses the need to reignite economic dynamism in Europe and to strengthen competitiveness and resilience. It notes that tax incentives should be seen as one possible element to be considered by each member state as part of an evolving policy mix to support the development of clean energy, industrial decarbonisation and clean technology.
The Council also underlines that flexibility in the application of incentives is key, and that member states are free to design, implement and apply tax incentives in accordance with their individual situations. At the same time, tax incentives should be kept simple for companies and tax authorities, in particular given the differences in tax systems across the EU.
The Council adopted decisions on the signing of amending protocols to the agreements between the EU and, respectively, Switzerland, Liechtenstein, Andorra, Monaco and San Marino on the automatic exchange of financial account information to improve international tax compliance.
The updated protocols will ensure that the exchange of information between EU member states and the respective third countries is aligned with the recently updated common reporting standards developed by the organisation for economic cooperation and development (OECD).
The amending protocols will now be signed. The Council is expected to adopt decisions marking the conclusion of the amending protocols later this year, once the European Parliament has submitted its opinion.
Separately, the Council adopted a decision authorising the opening of negotiations with Norway for an agreement on administrative cooperation in the field of direct taxation with EU member states.
The Commission presented its recommendation to member states on a blueprint for savings and investment accounts, adopted on 30 September 2025 as part of the savings and investment union.
Finance ministers then exchanged views on the topic. In general, they welcomed the initiatives presented by the Commission and reiterated their commitment to the savings and investment union.
The Council approved conclusions on climate financing in view of the 2025 UN climate change conference (COP30), taking place Belém on 10-21 November 2025.
The EU and its member states are the world’s largest contributor to international public climate finance, and since 2013 have more than doubled their contribution to climate finance to support developing countries.
In its conclusions, the Council notes its deep concern that 2024 was the warmest year on record, according to the findings of the World meteorological organisation 2025 decadal climate update.
The conclusions also reaffirm the EU and its member states’ commitment to the international collective goal of mobilising USD 100 billion per year in climate finance for developing countries and to call on third countries to contribute.
