During the last Ecofin Council under the Polish Presidency, to be held on Friday 20 June, the European finance ministers will discuss the Customs Union reform package, raise the issue of energy prices and take decisions on the fiscal policy of certain EU countries.
With regard to the Customs Union, the ministers will have the opportunity to publicly discuss the legislative package on the table, on the basis of a progress report from the Polish Presidency. Following this exchange of views, work will continue at technical level with a view to reaching a political agreement in principle (‘general approach’) in the EU Council by the end of June (see EUROPE 13661/27).
Energy. The Ecofin Council will discuss energy prices, an issue that has been the focus of the Polish Presidency since the beginning of the year.
A source at the French Ministry of Finance (Bercy) said on Wednesday 18 June that the European economy was facing a “ competitiveness challenge” when compared with the prices enjoyed by the EU’s main competitors. The source also mentioned a more “cyclical” issue, in view of the possible macroeconomic shocks that could result from the war unleashed by Israel against Iran in the Middle East.
Stability and Growth Pact. In the area of budgetary policy, the Council will approve two decisions on Romania and Belgium, two countries subject to the excessive deficit procedure (EDP).
In particular, it is expected to endorse the Commission’s assessment that Romania has not taken corrective measures to reduce its excessive deficit, which could reach 8.6% of national GDP, after 9.4% in 2024 (see EUROPE 13653/2). This finding should pave the way for subsequent procedural steps that could ultimately lead to the suspension of European funds allocated to Romania.
With regard to Belgium, the EU Council will approve the revised path for the Belgian public deficit, which will be brought below 3% of national GDP in 2029, compared with 2027 previously (see below).
The EU Council will also approve the multiannual budget programmes for Belgium and Bulgaria. For Belgium, it will validate the revised growth path for net public expenditure: 3.6% in 2025, 2.5% in 2026, 2.5% in 2027, 2.1% in 2028 and 2029. Brussels has activated the Stability Pact’s national escape clause.
To see the EU Council’s recommendation: https://aeur.eu/f/hen
The Bulgarian four-year programme envisages the following trajectory for net growth in public spending: 6.2% in 2025, 4.9% in 2026, 4.4% in 2027 and 4.0% in 2028. Bulgaria’s objective is to keep the public deficit below 3% of national GDP starting in 2026 until 2038. Sofia has activated the National Escape Clause to increase its military spending.
To see the EU Council's recommendation: https://aeur.eu/f/heo
EMU. Following the Eurogroup meeting the previous day (see EUROPE 13661/28), the ministers will hold an exchange of views on the convergence reports concerning Bulgaria, presented at the beginning of June by the Commission and the ECB (see EUROPE 13653/1). They will also be asked to adopt the recommendation of the euro area Member States, which will pave the way for the finalisation, at the Ecofin Council on Tuesday 8 July, of the legal acts that will enable Bulgaria to adopt the euro at the beginning of 2026.
The ministers will also exchange views on the budgetary and socio-economic policy recommendations that the European Commission sent to the Member States at the beginning of June.
To see the EU Council’s horizontal note on country-specific recommendations: https://aeur.eu/f/hey
RRF. Without debate, the ministers will give the green light to the revised plans of the following eight Member States: Belgium, Cyprus, Croatia, Italy, Lithuania, Malta, Poland and Slovenia.
To see the EU Council decisions adopting the revised plans and their appendices: https://aeur.eu/f/hez
It should be noted that the Ecofin Council will discuss the activation by sixteen Member States of the National Escape Clause to increase their military spending (see EUROPE 13632/8). However, it is not expected to adopt a decision on the orderly activation of this clause of the Stability Pact at this stage. And the ministers will hold their regular exchange of views on the economic and financial repercussions of Russia’s aggression against Ukraine.
Financial services. In the area of financial services, the ministers will take stock of the legislative proposals under discussion, particularly with regard to the need to reduce the regulatory burden.
The Polish Presidency of the EU Council and the Commission will present the latest progress in the interinstitutional negotiations (‘trilogue’) on the draft regulation on the sharing of ‘FiDA’ financial data in the EU (see EUROPE 13654/21). The same applies to the interinstitutional negotiations on the ‘CMDI’ legislative package, on which a provisional political agreement could be reached on Wednesday 25 June.
As part of the Savings and Investment Union (SIU), France could also promote the initiative for a European savings and investment label launched at the beginning of June in Paris in partnership with six other Member States (see EUROPE 13654/20).
Taxation. Finally, the ministers are expected to approve a six-monthly report on tax issues and conclusions on the progress made by the Code of Conduct Group on business taxation.
The Ecofin Council will also take note of a progress report on the revision of the Energy Taxation Directive. Despite the Polish Presidency’s proposals, further work seems necessary to reconcile positions within the Council of the EU (see EUROPE 13661/27).
To read the progress report: https://aeur.eu/f/hf0 (Original version in French by Mathieu Bion, Anne Damiani and Bernard Denuit)