Brussels: Europe and the Arabs
The meetings of the European Economic and Financial Affairs Council (Ecofin) at the ministerial level conclude today, Tuesday, and the Council seeks to reach a political agreement on the value added tax in the digital age package. The package consists of three proposals aimed at tackling VAT fraud, supporting businesses and promoting digitalization. Ministers will assess the implementation of the Recovery and Resilience Facility (RRF) and the Council will aim to adopt executive decisions approving the modified recovery and resilience plans, presented by some Member States.
The ministers will be informed of the status of the economic and financial impact of the Russian aggression on Ukraine.
The Council will approve the conclusions on the progress made in the statistical priorities of the European Union, providing guidance for further work. As a non-negotiable point, the Council will also adopt a regulation aimed at improving the development, production and dissemination of European statistics.
The Presidency will present a summary of legislative proposals in the field of financial services. As a non-negotiable point, the Council will adopt two legislations amending the Solvency II Directive, the main EU legislation in the field of insurance, and introducing new rules on insurance recovery and resolution (IRRD).
Yesterday, on the first day of the Eurozone Finance Ministers’ meeting, the Eurogroup reviewed the latest macroeconomic developments and outlook, including inflation, and heard from the annual meetings of the International Monetary Fund and the World Bank in Washington DC.

Report on the Banking Union
The ministers of the countries participating in the Banking Union heard from the heads of the Single Supervisory Mechanism and the Single Resolution Board as part of their twice-yearly report.
On this basis, the ministers addressed the state of the eurozone banking system and the main challenges ahead. The ministers also discussed the work that remains to be done to strengthen the resilience of the banking system.
“Our banks are more stable and resilient today, but we must continue to make progress towards completing the banking union, with the ratification of the European Stability Mechanism Treaty and the conclusion of work on the Crisis Management Framework,” said Eurogroup President Pascal Donohoe.

Eurozone Competitiveness – Completing the Workflow
The ministers adopted a formal statement on the competitiveness of the European economy.
“We need structural reforms and investments to boost competitiveness and productivity,” said Donohoe. “The single market remains one of our key assets.” Capital Markets Union
Ministers continued to follow up on the implementation of the Eurogroup Statement in a comprehensive format on the future of the Capital Markets Union, in line with the high-level roadmap adopted in May 2024.
Ministers also discussed how best to regularly assess the performance of European capital markets and monitor progress on EU and national measures.
“Deepening the Capital Markets Union is a key element of our work towards strengthening European competitiveness,” said the Eurogroup Chair.