On Tuesday 21 January, the European Finance Ministers will debate the simplification of European regulations with a view to increasing economic competitiveness. They will also adopt budgetary policy recommendations as part of the implementation of the revised Stability and Growth Pact.
On Monday, on the eve of the first meeting of the Ecofin Council under the Polish Presidency of the Council of the EU, the Ministers will have had a working dinner devoted to transatlantic relations and high energy prices (see EUROPE 13559/12). The aim is to stimulate a frank debate between the Ministers, but this will not lead to the adoption of a specific declaration.
See the Polish Presidency’s note on energy prices: https://aeur.eu/f/f41
See the IMF note: https://aeur.eu/f/f40
Simplification. On Tuesday, in camera, the Ecofin Council will debate how to simplify regulation at European level in order to boost economic competitiveness.
“This will be an opportunity for the Ministers to set out their expectations with a view to the ‘omnibus’ proposal” to be presented by the European Commission at the end of February, said a European source on Monday 20 January.
In a preparatory note (see EUROPE 13559/21), the Polish Presidency, which has made simplification a top priority for the first half of 2025, is asking Member States to submit concrete ideas for simplifying or reducing the regulatory burden in the field of economic and financial affairs.
See the Polish preparatory note: https://aeur.eu/f/f42
The ‘von der Leyen II’ Commission has set itself the target of reducing companies’ reporting obligations by 25% (35% for SMEs) (see EUROPE 13520/5).
Fiscal policy. Without any real debate, the Ministers will adopt EU Council recommendations on the multiannual budget programmes of 21 Member States and on seven excessive deficit procedures opened against seven Member States (see EUROPE 13532/11).
As far as France is concerned, the new Finance Minister, Éric Lombard, assured the Eurogroup on Monday that his country remained “determined to achieve the 3% of GDP target for the public deficit by 2029”, with the deficit set to rise to “5.4% of GDP” by 2025.
According to the trajectory to be endorsed by the EU Council, the maximum rate of growth in France’s net public expenditure should respect the following path: 0.8% in 2025, 1.2% in 2026, 2027 and 2028 and 1.1% in 2029.
“We are updating our proposal: the effort will be less in 2025” (deficit reduction of 5.4% instead of the 5.0% planned by the previous ‘Barnier’ government, Editor’s note), but in terms of growth in public spending, “we are offsetting this lesser effort so that in total, it remains constant”, said a source in the French Finance Ministry on Monday morning. The source pointed to “an additional favourable opinion from the Commission, which considers that the revised French trajectory complies with the rules”.
See the draft EU Council recommendation on France’s medium-term budget programme: https://aeur.eu/f/f4k
Also approved by the Commission on Friday, the Hungarian budget programme will be ratified by the Council of the EU in February (see EUROPE 13560/20).
See the EU Council’s draft recommendations on the 21 multiannual budget programmes: https://aeur.eu/f/f43
Ukraine. Over breakfast, the Ministers will exchange views with their Ukrainian counterpart, Serhiy Marchenko. In particular, they will review the macroeconomic situation in Ukraine and the implementation of the two macrofinancial assistance packages that the EU is providing to the candidate country to contribute to its operating costs and finance its war effort against Russia.
RRF. In addition, the Ecofin Council will adopt the revised post-Covid-19 recovery plans for the following three Member States:
- for Spain, see the EU Council decision: https://aeur.eu/f/f48 ; and its annex: https://aeur.eu/f/f49
- for Greece, see the EU Council decision: https://aeur.eu/f/f4a ; and its annex: https://aeur.eu/f/f4b
- for Cyprus, see the EU Council Decision: https://aeur.eu/f/f4c ; and its annex: https://aeur.eu/f/f4d
Not on the ministerial agenda on Tuesday will be the question of a possible technical extension of the regulation establishing the RRF, the budgetary instrument for national recovery plans, even though Poland is in favour of this (see EUROPE 13557/29).
However, the closer we get to the 2026 deadline, the more subjects like this could be debated, said this European source.
Anti-money laundering. Among the points not discussed, the Ecofin Council is expected to appoint Bruna Szego as Chair of the new European Anti-Money Laundering Authority (AMLA). At its December plenary session, the European Parliament approved this appointment (see EUROPE 13548/15).
Since 2022, Mrs Szego has been Head of the Unit, reporting directly to the Executive Board, responsible for regulation and supervision of anti-money laundering and combating terrorist financing at Banca d’Italia. (Original version in French by Mathieu Bion with Anne Damiani)