In today’s ECOFIN meeting, the Greek Presidency welcomed the final adoption of the Bank Recovery and Resolution Directive. “Together with two other key texts recently approved by the European Parliament (the Single Resolution Mechanism and the recast Directive on Deposit Guarantee Schemes), the BRRD completes the legislative work underpinning the Banking Union and constitutes a very important achievement in restoring confidence in the EU’s banks after the recent financial crisis”. “Establishing these common rules for a clear and comprehensive bank recovery and resolution regime, the BRRD is crucial for ensuring long term financial and economic stability, and for reducing the potential costs of possible future financial crises for public funding and for taxpayers”, said ECOFIN President Yannis Stournaras.

 

During the working breakfast, Finance Ministers welcomed the new French Minister of Finance, Michel SAPIN, and the Vice President Sim KALLAS now covering ECOFIN business. The usual debrief on the Eurogroup and the economic situation followed on the basis of the Commission’s spring economic forecast. 

 

The Council discussed the proposal to amend the Parent Subsidiaries Directive (2011/96/EU), which aims at addressing tax avoidance by parent companies and subsidiaries in different Member States, by countering the double non-taxation of corporate groups deriving from hybrid loan arrangements. This rule is included in the first part of the Commission’s amending proposal, after its splitting on the basis of a Presidency compromise package aimed at closing the ‘hybrid loan mismatch’ loopholes, generating important losses of revenues in our countries and thus taking a tangible step forward in the fight against tax fraud and tax avoidance. The remaining part of the amending proposal deals with common anti-abuse provisions for the proper functioning of the Directive. “After today’s constructive discussions, the Council is close to an agreement on this important file and we have asked experts to examine the text as necessary in order to reach this agreement by the ECOFIN in June”, underlined President Stournaras.

 

Furthermore, the Council exchanged views on the proposal for a Directive on Financial Transaction Tax (FTT), - on the basis of a Presidency note on the current state of play and a joint statement by Ministers of Member States participating in enhanced cooperation in the area of FTT. Minister Stournaras stressed that the Greek Presidency is ready to carry forward work on this basis.

 

As far as the Commission’s in-depth reviews of macroeconomic imbalances in the Member States published in March are concerned, the Council adopted conclusions, in which it underscores the need for policy action and commitment to structural reforms in all countries faced with macroeconomic imbalances, especially those affecting the smooth functioning of the Euro-area, and invites the Commission to present well-focused and consistent recommendations to address these.

 

Moreover, the Presidency and the Commission debriefed the Council on the main outcomes of the G20 Finance Ministers and Central Bank Governors meeting, and the annual spring meetings of the IMF and the World Bank that took place in Washington D.C. from 10 to 13 April.

 

In the margins of the ECOFIN, two important meetings took place: The annual European Investment Bank (EIB) governors’ meeting and the Ministerial Dialogue with Candidate Countries, where the Economics and Finance Ministers of the EU met their counterparts from the candidate countries – Turkey, the former Yugoslav Republic of Macedonia, Montenegro and Serbia – for their 16th economic policy dialogue.

 

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