On Tuesday 17 February, the European finance ministers will examine measures to facilitate access to pension schemes that complement public pensions, presented by the European Commission last November with the aim of advancing the Savings and Investment Union (SIU) project. The package includes a revision of the Institutions for Occupational Retirement Provision ‘IORP II’ Directive and the regulation on the pan-European personal pension product ‘PEPP’.
“We have a very heterogeneous situation in Europe”, stressed a high-ranking European diplomat ahead of the meeting. “It’s very important to take into account where you are and where you are starting from (...). That you’re not destroying something that is working very well”, the diplomat added, whereas the proposed reform package would fall within the remit of the EU Member States (see EUROPE 13756/14).
“We aim to advance the proposals as much as possible in a balanced and practical manner”, said another European diplomat on Monday.
A future compromise in the Council of the EU could be the first step towards making the SIU a reality, by combining social protection with the mobilisation of savings to finance the European economy. “If we make progress this year, it will be a real turning point. We are clearly committed to removing obstacles, accelerating and moving forward to strengthen the European capital market”, the German Minister of Finance, Lars Klingbeil, said on Monday at the start of the Eurogroup meeting.
At Alden Biesen on 12 February, the President of the European Commission, Ursula von der Leyen, announced her intention to conclude a “first phase” of the SIU by June, focusing on the integration of financial markets, supervision and securitisation.
The market infrastructure reform package (see EUROPE 13772/2) is seen as “ambitious and well-calibrated” by the French Ministry of the Economy. On the ‘single currency’ package (see EUROPE 13777/12) and the relaunch of securitisation (see EUROPE 13777/24), the positions of the European Parliament are awaited with a view to the rapid start of interinstitutional negotiations.
Ukraine. The ministers will take stock of the economic impact of Russia’s military aggression against Ukraine. They will welcome the rapid work that led to an agreement in the Council of the EU on the €90 billion Ukraine support loan for 2026 and 2027 (see EUROPE 13801/15), an agreement that the European Parliament immediately endorsed without amendment.
The Cyprus Presidency of the EU Council hopes to finalise the legislative procedure in time for the ‘General Affairs’ Council on Tuesday 24 February, when the conflict will enter its fifth year, so that the first payments can be made at the beginning of the second quarter.
Budget. The Council of the EU will adopt conclusions setting out its guidelines for the preparation by the European Commission of the EU draft budget plan for 2027.
Without debate, the ministers will approve the economic and fiscal policy recommendation for the euro area, which recommends a “broadly neutral” fiscal stance for 2026 (see EUROPE 13771/2).
To see the revised draft recommendation: https://aeur.eu/f/kra
Defence. In addition, the EU Council will authorise Austria to activate the national derogation clause of the Stability and Growth Pact to allow it to increase its annual military spending by up to 1.5% of national GDP.
Austria is the subject of an Excessive Deficit Procedure (EDP) and must consolidate its public finances in order to reduce its deficit from 4.7% of GDP in 2024 to 3% in 2028 (see EUROPE 13676/23).
Sixteen Member States have already activated the national escape clause of the Stability Pact (see EUROPE 13632/8).
To see the draft decision of the EU Council concerning Austria: https://aeur.eu/f/kqb
‘SAFE’. The European Commission will inform ministers of the implementation of the ‘SAFE’ instrument for lending to Member States to increase national spending in the defence sector.
After adopting the national investment plans of eight countries (see EUROPE 13788/14), the ‘Ecofin’ Council will do the same on Tuesday for the plans of the eight other Member States concerned: Poland, Italy, Finland, Lithuania, Latvia, Estonia, Slovakia and Greece.
The European Commission still has to approve the French, Hungarian and Czech plans.
RRF. It should also be noted that the ministers will adopt a revision of the post-Covid-19 recovery plan submitted by Lithuania.
To see the draft EU Council decision and its annex: https://aeur.eu/f/kqz
Taxation. Finally, the ministers will approve without debate an update of the EU’s ‘black’ list of uncooperative jurisdictions for tax purposes.
Vietnam and the Turks and Caicos Islands will be added, while Fiji, Samoa and Trinidad and Tobago will be removed (see EUROPE 13808/20). These first two jurisdictions join Anguilla, Guam, the US Virgin Islands, Palau, Panama, Russia, American Samoa and Vanuatu, bringing the list to ten jurisdictions.
Antigua and Barbuda and the Seychelles have been removed from the EU’s ‘grey’ list of jurisdictions committed to governance.
To read the draft conclusions: https://aeur.eu/f/krb (Original version in French by Bernard Denuit, Mathieu Bion and Anne Damiani)