Main results of the EU Economic and Financial Affairs Council, 16 July 2024

The main priority of the Hungarian presidency is to improve the competitiveness of the European economy. We will focus our efforts on areas where EU action has real added value and where we can effectively contribute to macroeconomic stability and prosperity in a geopolitically uncertain environment. Despite having limited fiscal space, we must find the best ways to achieve these objectives for the long-term well-being of EU citizens.

^{Mihály Varga, Hungarian minister for finance}

• Watch the public session
• Hungarian presidency programme (background information)
• Hungarian presidency website (background information)

Recovery and Resilience Facility

Ministers took stock of the implementation of the Recovery and Resilience Facility (RRF).

The Council adopted an implementing decision approving Germany’s modified recovery and resilience plan, that includes a new REPowerEU chapter. This will contribute to accelerating Germany’s transition towards clean energy by increasing the share of renewables in the German energy mix.

The Council also approved updated plans submitted by Greece, Cyprus, Poland and Finland.

• Recovery fund: Council greenlights Germany’s amended plan that includes a REPowerEU chapter (press release, 16 July 2024)
• A recovery plan for Europe (background information)
• REPowerEU: energy policy in EU countries’ recovery and resilience plans (background information)
• The REPowerEU plan explained (infographic)

• EU solidarity with Ukraine (background information)
• EU response to Russia’s invasion of Ukraine (background information)
• The Ukraine Facility

European Semester

Taking work forward on the European Semester, the Council approved country-specific recommendations on the economic, social, employment, structural and budgetary policies of each member state.

The Council also approved conclusions on the 2024 in-depth reviews under the macroeconomic imbalance procedure.

• European Semester 2024: country- specific recommendations agreed (press release, 16 July 2024)
• Macroeconomic imbalance procedure: Council approves conclusions (press release, 16 July 2024)
• The European Semester explained (background information)
• Timeline: the 2024 exercise (background information)

Stability and growth pact: Excessive deficit procedures

The Commission presented its proposals for Council decisions on the opening of an excessive deficit procedure for seven member states: Belgium, France, Italy, Hungary, Malta, Poland and Slovakia. This was followed by an exchange of views by ministers.

The Council also discussed a Commission recommendation for a Council decision on Romania, which is under an excessive deficit procedure since 2020 and has not taken effective action to remedy this situation.

The Council will be invited to adopt the decisions by the end of July 2024.

• Belgium
• France
• Hungary
• Italy
• Malta
• Poland
• Romania
• Slovakia
• Excessive deficit procedure (background information)

Convergence reports on the single currency

The European Commission and the European Central Bank presented convergence reports followed by an exchange of views by ministers. The convergence reports examine whether member states outside the euro area satisfy the necessary conditions to adopt the single currency.

The Council took note that none of the member states that benefit from a  derogation fulfil criteria to join the euro area.

The 2024 Convergence Reports submitted in June 2024, cover the following six member states with a derogation: Bulgaria, Czechia, Hungary, Poland, Romania and Sweden. Denmark has negotiated opt-out arrangements and will therefore not be the subject of a convergence assessment until it requests it.

• The European Commission’s convergence report 2024
• The European Central Bank’s convergence report 2024

G20

The Council approved the EU terms of reference in view of the G20 Finance Ministers and Central Bank Governors meeting of 25-26 July 2024.

• G20 website

Financial services

The Presidency presented the state of play of legislative proposals in the field of financial services. This is a recurrent item on the Council agenda.

• Progress report
• Digital finance (background information)
• Capital markets union (background information)

UN framework Convention on tax cooperation

The Council approved the position of the European Union and its member states for the second substantive session of the ad hoc committee to draft terms of reference for a UN Framework Convention on international tax cooperation.

The second substantive session of the ad hoc committee will take place from 29 July to 16 August 2024.

• Position on behalf of the European Union and its Member States valid for the second substantive session of the Ad Hoc Committee
• Position on behalf of the European Union and its Member States valid for the first substantive session of the Ad Hoc Committee
• Note by the Belgian presidency

The Council also approved without discussion the items on the list of non-legislative ‘A’ items.

• Macroeconomic imbalance procedure: Council approves conclusions
• European Semester 2024: Council agrees on country- specific recommendations
• Recovery fund: Council greenlights Germany’s amended plan that includes a REPowerEU chapter

Source – EU Council