24 January 2023

ECON: In-depth analysis by the Economic Governance and EMU Scrutiny Unit (EGOV)

The ECON-related priorities of the Swedish Presidency
The Swedish Presidency’s priorities in the Economic and Financial Affairs Council include the following policy areas inter alia:
• work to ensure constructive discussions and progress on ways in which the EU can support Ukraine, together with bilateral partners and international financial institutions (see Section 2 below);
• move work forward to implement important reforms and investments within the Recovery and Resilience Facility, taking account of REPowerEU (see Section 3 below);
• work to ensure the effective implementation of the European Semester (see Section 4 below), which is an important tool for handling the current exceptional economic circumstances and modernising the EU economy. The Presidency also intends to tackle the deactivation of the Stability and Growth Pact’s general escape clause ahead of 2024;
Elisabeth Svantesson, Minister of Finance of the Sweden, is participating in the ECON Committee in her capacity of President of the ECOFIN Council during the Swedish Presidency (January-June 2023). In accordance with the Treaty of the Union, “Member States shall regard their economic policies as a matter of common concern and shall coordinate them within the Council”.
This document provides an overview of the Swedish Presidency priorities in ECON matters, including the Council’s work relating to the implementation of the European Semester for economic coordination, notably the application of the Recovery and Resilience Facility, and other policy streams relevant to the EU single market and the deepening of the Economic and Monetary Union, including the review debate on the EU economic governance framework.

• move the work forward on the economic governance review and help achieve consensus (see Section 5 below), while taking the Commission’s proposals and the progress made under previous presidencies as its starting point;
• continue discussions on EU tax policies (the review of the Energy Taxation Directive and on the proposal for new VAT rules for the digital age). In the area of direct taxation, priority will be given to measures aiming to prevent tax evasion, tax avoidance, aggressive tax planning and harmful tax competition, such as updating the EU list of non-cooperative jurisdictions. In addition, the Presidency will work to ensure greater tax transparency and to reinforce the exchange of relevant information within the EU. The Presidency stands ready to advance the work on further strengthening EU administrative cooperation on taxation;
• continue the fight against international crime by advancing the efforts to tackle money laundering and the financing of terrorism (see Section 5 below). This will involve advancing the negotiations on establishing a new EU body in this area and on the ‘rulebook’;
• prioritise efforts to create an open and competitive capital markets union to strengthen the internal market and bolster the green transition. It is crucial to ensure continued high consumer and investor protection and help ensure transparency and sustainability in the capital market (see Section 5 below);
• continue the work on regulatory frameworks for funds and financial instrument markets, and a European single access point for financial and non-financial information. Financial stability efforts will continue, including through progress in the area of banking and insurance with regard to enhanced resilience, the implementation of international standards, and crisis management. The Presidency is also ready to initiate discussions on new proposals presented by the Commission during the first half of the year, including on the digital euro and consumer protection.
Box 1: ECON related legislative work during spring 2023
On-going ECON related legislative work
Capital Markets Union
-Review of the Directives on AIFMD and UCITSD; Review of MiFIR Regulation and Directive on MiFID II; Establishment of the European Single Access Point (ESAP); Regulation on central securities depositories (CSDR)
- Clearing package
- Listing package
Banking Union
- Review of Capital Requirements Regulation (CRR) and Review of the Capital Requirements Directive (CRD IV)
Anti-money laundering (jointly with LIBE)
- Regulation on AML/CFT; Review of Directive on AML/CFT (AMLD6); Regulation establishing a new EU AML/CFT Authority (AMLA)
Insurance
- Review of the Solvency II Directive and Directive for the recovery and resolution of insurance and reinsurance undertakings (IRRD)
Sustainable Finance
- Regulation on European green bonds Payments and Regulation on instant credit transfers in euro
Envisaged upcoming ECON related legislative work
Retail Investment Package
Bank crisis management and deposit insurance package
Economic governance review
Data access in financial services

1. Strengthening the role of the euro (Digital euro; and Scope and effects of legal tender of euro banknotes and coins)

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