Economic and Financial Affairs Council, 17 June 2022

Main results

Economic and financial situation

Over breakfast, ministers had an informal exchange of views on the current economic and financial situation, in the context of rising inflation.

EU economy and finance ministers agreed to continue to coordinate economic policies to respond to the rise in inflation, especially with temporary measures to protect the most vulnerable households.

EU’s new own resources

Following the interinstitutional agreement of 16th December 2020, EU economy and finance ministers discussed the proposed decision on the system of new own resources of the European Union. This discussion was based on a Presidency note and covered inter alia the carbon border adjustment mechanism (CBAM) and the EU emissions trading system (EU ETS).

Ministers expressed their views on the introduction of new own resources to ensure the repayment of the EU recovery plan, and on the timetable for their implementation.

• Recording of the discussion at Ecofin Council
• Presidency progress report on new own resources of 10 June 2022

Anti-money laundering

The Council took note of the state of play as regards the legislative package on anti-money laundering.

• Anti-money laundering and countering the financing of terrorism (AML/CFT) – Progress report
• Anti-money laundering and countering the financing of terrorism (AML/CFT) – Note
• Fight against money laundering and terrorist financing (background information)

Solvency II

The Council agreed its position (general approach) on amendments to the Solvency II directive, the EU's main piece of legislation in the insurance area. The Council underlined that the insurance and reinsurance sector can provide private sources of financing to European businesses and can make the economy more robust by providing protection against a wide range of risks.

• Solvency II: Council agrees its position on updated rules for insurance companies (press release, 17 June 2022)

Alternative investment fund managers directive

To improve the European capital market and strengthen investor protection, the Council reached agreement on its position (general approach) on a review of the alternative investment fund managers directive, which is the legislative framework which governs managers of hedge funds, private equity funds, private debt funds, real estate funds and other so-called alternative investment funds in the Union.

• Capital Markets Union: Council agrees its position on updated rules for hedge funds, private debt funds, and other alternative investment funds (press release, 17 June 2022)
• Capital markets union (background information)

Implementation of the Recovery and Resilience Facility (RRF) and Poland’s plan

Ministers took stock of the implementation of the Recovery and Resilience Facility (RRF). The Council adopted its implementing decision on the approval of the recovery and resilience plan (RRP) of Poland.

The Recovery and Resilience Facility is the EU’s programme of large-scale financial support in response to the challenges the pandemic has posed to the European economy. The facility’s €672.5 billion are used to support the reforms and investments outlined in the member states’ recovery and resilience plans. €100 billion have already been disbursed.

• NextGenerationEU: ministers approve the assessment of Poland’s national plan by the European Commission (press release, 17 June 2022)
• A recovery plan for Europe (background information)

European Semester 2022: country-specific recommendations agreed

The Council approved the recommendations on the 2022 National Reform Programmes and delivered an opinion on the 2022 Stability and Convergence Programmes. They take into account the spring 2022 forecast and the continuation of the Stability and Growth Pact’s general escape clause into 2023 and address the budgetary stance of member states in qualitative rather than quantitative terms, given the exceptional current circumstances.

• European Semester 2022: country-specific recommendations agreed (press release, 17 June 2022)
• European Semester in 2022 (timeline)
• European Semester (background information)

Enlargement of the euro area: Croatia

The Council adopted a recommendation which is the first part of a legal process which will enable Croatia to become a member of the euro area and to benefit from using our common currency, the euro, as of 1 January 2023.

The Council also endorsed a letter by the President of the Ecofin Council to the European Council. The European Council will discuss the matter at its meeting on 24 June.

Croatia will be the 20th EU member state to adopt the euro as its currency. It follows the footsteps of Lithuania, which joined the euro area as 19th EU member state in 2015.

• Euro area member states recommend that Croatia become the 20th member of the euro area (press release, 16 June 2022)
• International role of the euro (background information)
• Joining the euro area (background information)

Financial services legislation

The Presidency presented the state of play as regards current legislative proposals in the field of financial services.

• Progress on financial services legislative files
• Digital finance (background information)

Fight against VAT fraud: EU-Norway agreement

The Council considered it timely to further strengthen cooperation with Norway as regards administrative cooperation, combating fraud and recovery of value added tax (VAT) claims. To this end, it authorised the Commission to open negotiations with Norway in order to strengthen an agreement between the EU and Norway which entered into force in 2018.

• Fight against VAT fraud: Council authorises deepening cooperation with Norway (press release, 17 June 2022)

Conclusions on “Code of Conduct” Group (business taxation)

The Council adopted conclusions on the progress achieved by the “Code of Conduct” Group (Business Taxation) during the French Presidency.

The Council also approved the 6-monthly COCG report.

• Business taxation: Conclusions on the work of the Code of Conduct Group (press release, 17 June 2022)
• EU list of non-cooperative jurisdictions for tax purposes (background information)

International procurement instrument

The Council adopted a regulation to promote reciprocity in access to international public procurement markets, which will ensure access and a level playing field for EU companies on third countries' public procurement markets, thereby increasing business opportunities for these companies.

• International Procurement Instrument: Council gives green light to new rules promoting reciprocity (press release, 17 June 2022)

Energy taxation directive

As an item without discussion, the Council took note of a progress report on the revision of the energy taxation directive.

• Progress report by the French Presidency