In a press conference following the first Economic and Financial Affairs Council (ECOFIN) meeting under the Spanish EU Presidency, Executive Vice-President Valdis Dombrovskis addressed the urgent work areas demanding the EU’s attention. The Spanish Presidency’s priorities for the next six months, which focus on the green transition and building a more competitive, fair, and caring economy, were welcomed.
One of the key topics discussed was the revision of the EU’s multiannual financial framework (MFF). Dombrovskis highlighted the strain on the EU’s seven-year budget, exacerbated by Russia’s aggression against Ukraine, energy crises, and inflation spikes. The Commission proposed the establishment of a €50 billion Ukraine Facility, aimed at providing support for Ukraine’s macro-financial stability, long-term reconstruction, and reforms on its path towards the EU. Rapid progress on the MFF review is crucial to alleviate budgetary pressures and ensure continuity of financial support for Ukraine from January 2024.
Another important topic on the agenda was the economic governance review, with a focus on stimulating reforms and investment while ensuring fiscal sustainability. The weakness observed in the EU economy in the first quarter persisted into the second quarter, although strong labor markets contributed to the resilience. The Spanish Presidency committed to intensive discussions on the governance review, aiming to conclude it by the end of the year.
Dombrovskis also addressed the progress of the Recovery and Resilience Facility, congratulating France, Malta, and Slovakia on the adoption of their revised national plans that include REPowerEU chapters. Ireland’s revised plan with targeted amendments was adopted as well, with its REPowerEU chapter expected to be submitted soon. The Commission is currently assessing other revised plans, and more are anticipated over the summer. Implementation of the plans by Member States is crucial at this stage.
Regarding customs, the Commission’s proposals for a comprehensive reform of the EU Customs Union were discussed. The reform aims to simplify customs processes, utilize cutting-edge technology, create transparency and certainty for online shoppers, and establish an EU Customs Authority to supervise supply chains and ensure security and EU product standards.
The meeting concluded with an agreement among ministers to press ahead with known areas of convergence, with a goal of reaching an agreement on economic governance as soon as possible.
The Spanish Presidency’s leadership in addressing these pressing issues was acknowledged, and the importance of swift progress and agreement was emphasized for the benefit of the EU and its member states.
https://ec.europa.eu/commission/presscorner/detail/en/SPEECH_23_3869