The finance ministers and central bankers of the countries of the European Union are meeting in Copenhagen on Friday 19 and Saturday 20 September, at the invitation of the Danish Presidency of the EU Council, for an informal meeting at which they will discuss the costs arising from European legislation, the simplification of financial regulation and the economic impact of geopolitical developments.
At lunch, the ministers will be asked about the possibility of giving the Ecofin Council a new cross-cutting role in assessing the economic and budgetary impact of all EU legislation currently being drafted or to be implemented in the future.
This idea is attracting interest from national finance ministries, but would not be welcomed by other EU Council configurations, which would see it as an encroachment on their prerogatives, notably the General Affairs Council.
The Danish authorities have set up a tool to calculate the cost of implementing EU rules and monitoring compliance with them once they are in force, which can be used by both administrations and economic operators. For the public sector, they estimate the one-off costs to be between €1.6 and €1.8 billion, and the recurring costs on an annual basis to be between €26 and €38 billion. For businesses, the one-off costs would be between 63 and 70 billion euros, while the recurring costs would be between 71 and 86 billion euros each year.
Questioned on the need to have an overall idea of the costs represented by future European legislation, the ministers will be invited to give their views on how to develop European rules that reach their goal, while minimising the administrative burden for businesses and the cost to public finances.
Simplification of financial regulation. On Friday afternoon, the ministers will consider how simplifying EU financial legislation could boost European economic competitiveness without jeopardising financial stability.
This discussion will be fuelled by a study from the British think-tank New Financial, who will set out possible avenues for regulatory simplification (see EUROPE 13710/24). These recommendations include improving initial impact assessments to ensure that future legislation only comes into being when it is required and that if it does so, it fulfils its objectives.
Read the New Financial report: https://aeur.eu/f/igh
On Saturday morning, the ministerial discussions will focus on macroeconomic issues. Firstly, there will be a discussion of national structural reforms designed to boost productivity and how to overcome the political barriers to achieving them.
In a study that will feed into these discussions, IMF economists note that the momentum for structural reform in the EU has weakened since 2010, despite the beneficial effect of the Next Generation EU Recovery Plan. They are underlining the importance of solid public institutions and good communication, particularly with social partners, in bringing reforms to fruition. Other factors to be taken into account concern the sequencing and timing of these reforms, as well as the supporting role that budgetary policies can play at national and European level.
See the IMF report: https://aeur.eu/f/iho
Alongside their British, Norwegian and Canadian counterparts, the ministers will also discuss the economic impact of the current geopolitical upheaval on the EU.
The Bruegel think-tank will present them with three possible scenarios for 2035, anticipating the evolution of relations between the EU and other blocs dominated by the United States and China. Whatever the scenario, the EU is invited to make massive investments to strengthen its strategic autonomy in areas such as defence, digital technology, finance and access to critical raw materials.
See the Bruegel report: https://aeur.eu/f/ihe (Original version in French by Mathieu Bion)