Economic and Financial Affairs Council

Main results

VAT in the digital age

The Council reached an agreement on a package of legislation on value added tax (VAT) in the digital age. The package consists of three proposals that set out to tackle VAT fraud, support businesses and promote digitalisation.

After almost two years of negotiations, the Council has reached an agreement on the VAT package. This is a cornerstone for the digital transition and a significant step in improving the competitiveness of the EU. The new rules will update our VAT systems to reflect the digitalisation of our economies, help combat VAT fraud, and ease administrative obligations for small companies and individual service providers. Today’s decision was preceded by intense discussions led by the Hungarian presidency; thus, we are grateful to all delegations for their constructive approach and hard work.

Mihály Varga, Hungarian minister for finance

Recovery and Resilience Facility

Ministers took stock of the implementation of the Recovery and Resilience Facility (RRF). To date, all RRPs have been approved, 70 payment requests have been received and more than €268 billion have been disbursed.

The Council adopted implementing decisions approving targeted amendments submitted by Czechia and the Netherlands to their modified recovery and resilience plans.

Russia’s aggression against Ukraine

The Council was informed about 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 state of progress on the implementation of the recent G7 agreement on an additional 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.

Annual reporting

The Council held an exchange views on the 2024 annual report of the European Fiscal Board (EFB) in the presence of the former EFB Chair, Niels Thygesen.

EU statistics

The Council approved conclusions on the progress made on the EU’s statistical priorities, while providing guidance for further work.

As a point without discussion, the Council also adopted a regulation that aims to further improve the development, production and dissemination of European statistics.

International meetings

The Council and Commission debriefed ministers on the main results of the G20 finance ministers and central bank governors meeting that took place on 23-24 October 2024 in Washington.

Climate finance

The Council published the 2023 international climate finance figures, in preparation for the United Nations Climate Change Conference of the Parties (COP29), which will take place from 11 to 22 November in Baku, Azerbaijan.

In 2023, the European Union and its 27 member states contributed €28.6 billion in climate finance from public sources and mobilised an additional amount of €7.2 billion of private finance to support developing countries to reduce their greenhouse gas emissions and adapt to the impacts of climate change.

The figures are based on the EU climate finance reporting rules laid down in the governance regulation.

Financial services

The Presidency presented the state of play of legislative proposals in the field of financial services. Ministers were also informed of the state of play in implementing EU legislation in the field of financial services. These are recurrent items on the ECOFIN agenda.

As a point without discussion, the Council adopted two pieces of legislation that change the Solvency II directive, the EU’s main piece of legislation in the insurance area, and introduce new rules on insurance recovery and resolution (IRRD).

Macroeconomic dialogue at political level

A Macroeconomic dialogue at political level (MEDPOL) was held on 4 November, in the margins of the meeting.

The social partners exchanged views with the presidency and the two forthcoming presidencies, the Commission, the European Central Bank and the president of the Eurogroup. The meeting focussed on reviewing the current economic conditions, outlook and appropriate policy response, as well as addressing demographic changes and the impact on competitiveness.

EU-EFTA ministerial dialogue

A ministerial dialogue between the EU and EFTA (European Free Trade Association) countries took place in the margins of the meeting on 5 November.

Ministers exchanged views on how to improve competitiveness in the long term, taking on the challenges of demographics and productivity.