European Finance Ministers are gathering on Thursday 5 December for a meeting which will focus on giving guidance to the new European Commission on the way forward in the areas of money laundering, energy taxation and capital market integration, through the adoption of a series of conclusions. They will also discuss the strengthening of the Banking Union, their priorities in terms of sustainable finance and even tax transparency on a country by country basis.
While there are many non-legislative issues on the agenda, for its last ECOFIN Council, the Finnish Presidency of the Council of the EU has once again focused on transparency and almost all the items on the agenda will be public.
CBCR. One of the long-awaited discussions is the one on the proposal for country by country reporting (CBCR). While this is officially only an information point requested by Sweden, several sources consider that it might turn into a real discussion.
Last week, at the Competitiveness Council, twelve Member States - including Sweden - blocked the adoption of the text and asked for it to be referred to the Ecofin Council (see EUROPE 12379/13).
In a note prepared for the meeting, Sweden highlights that the proposal concerns tax issues and that the legal basis should therefore be Article 115 TFEU. "Moving away from unanimity on tax matters would, at least in the longer term, significantly reduce the powers of National Parliaments and Governments", it writes.
The country also considers that the Competitiveness Council should no longer take a decision on the proposal until it has been thoroughly discussed in the Ecofin Council.
Sustainable Finance. Ministers will then discuss their priorities for sustainable finance behind closed doors. The Commission will report on progress in implementing its 2018 Action Plan and will provide the EU Council with information on the European Green Deal, which it will unveil next week.
Ministers are also expected to approve an Ecofin Council work programme on climate action, containing a list of topics to be discussed at future meetings, covering public finances, taxation and investment in sustainable infrastructure.
The work programme has been designed as a "living document", which can be updated regularly, a diplomatic source said.
Energy taxation. The Council will also adopt conclusions setting out its expectations for a possible revision of the Energy Taxation Directive. In particular, the text calls on the Commission to pay particular attention to the scope of the directive, minimum rates and specific tax reductions and exemptions (see EUROPE 12380/12).
According to several sources, the text is stable. Nevertheless, given its sensitive nature, a round table discussion could take place to allow each country to express its view.
Money laundering. Conclusions detailing the EU Council's strategic priorities in the fight against money laundering will also be adopted (see EUROPE 12346/3). They invite the Commission to study the possibility of conferring certain monitoring powers in the fight against money laundering to an EU body with an independent structure (see EUROPE 12378/15).
According to a diplomatic source, the text will now be the subject of an agreement and there should be no major discussion between ministers.
Banking Union. The Finnish Presidency will also present a progress report on the work on the Banking Union, in particular on the proposal to establish a European Deposit Insurance Scheme (EDIS), the implementation of the banking package and the action plan to combat non-performing loans (NPL).
This debate will depend very much on the outcome of the Eurogroup meeting, which was taking place on Wednesday 4 December, as we were going to press. Euro area Finance Ministers were invited to adopt a roadmap for relaunching political discussions on the completion of the banking union, provided that further progress was made in reducing financial risks (see EUROPE 12381/15).
CMU. Finally, ministers will adopt conclusions calling for a new roadmap to deepen the Capital Markets Union (CMU). The text sets out several work objectives for the Commission's High Level Forum on CMU (see EUROPE 12371/25), in particular increased access to finance for European companies, support for the transition to a sustainable economy and strengthening global competitiveness (see EUROPE 12381/11).
Cryptocurrencies. In addition, the adoption is expected on the declaration of the Council of the EU and the European Commission on the dangers of stable coins (see EUROPE 12375/25), which does not differ in substance from the version presented at the Ecofin Council on 8 November (see EUROPE 12365/4).
Financial architecture for development. Ministers will adopt conclusions on the European financial architecture for development in response to the Wieser report (see EUROPE 12344/10).
Finalised on Wednesday by the Member States' ambassadors to the EU (Coreper), the text excludes the option of setting up an ad hoc structure shared between the EIB and the EBRD, and approves the launch of an independent feasibility study to be carried out in 2020 on the other two options selected by the experts (see EUROPE 12382/16).
It should be noted that the Danish delegation also requested the addition of an item to the agenda, in order to inform the EU Council of its views on further strengthening the European list of non-cooperative countries and territories for tax purposes.
Finally, the Council is also expected to adopt decisions and recommendations on the implementation of the Stability and Growth Pact. (Original version in French by Marion Fontana and Mathieu Bion)