05 July 2013

ECOFIN Council Work Programme during the Lithuanian Presidency

The year 2013 marks a potentially positive turning point for the European Union in dealing with the consequences of the global financial crisis. For the EU economy to build a credible path, more determined efforts are required at all levels to advance structural reforms and enhance competitiveness, growth and jobs. The Lithuanian presidency of the Council of the EU will focus on ensuring an adequate environment for long term and sustainable growth in Europe.

When presiding over the Economic and Financial Affairs Council, Lithuania will strive to strengthen the ground for financial stability and sound public finances in the EU, which are necessary preconditions to fully restore EU’s economic credibility. In this respect, the Presidency’s efforts will foremost be directed at further developing the framework of the Banking Union and making progress on other legislative proposals in the field of financial market reforms.

Another key area on which the Lithuanian Presidency will focus is continuing with discussions on more effective functioning of the EMU, with an aim of achieving concrete results.

Finally, significant attention will be devoted towards effective implementation of the newly established and enhanced economic governance framework focusing on prudent surveillance of potential budgetary and economic imbalances in the euro area and the EU.

Financial services

Noting the high importance that financial markets and the banking system have for the real economy of the EU, ensuring their stability and soundness remains of key importance. Well-regulated and supervised financial markets provide for a strong foundation for financing economic growth as well as for overall confidence in the financial system. Taking that into account, the Presidency foresees two important work streams in the field of financial services: further development of the Banking Union, and progress on other important legislative dossiers in the field of financial services focusing among other things on investor protection via better regulated markets in financial instruments, more efficient European insurance market etc.

Further development of the Banking Union framework

The Lithuanian Presidency, in accordance with the conclusions of the June 2013 European Council, considers further work regarding the framework of the Banking Union as one of the main priorities of the Presidency. Successful conclusion of the Banking Union is crucial for smooth functioning of the Economic and Monetary Union and for financial stability of the whole EU.

The Single Resolution Mechanism is a next important step in creation of the Banking Union. It will allow for the Banking Union to operate fully and effectively. The European Council in June 2013 invited the Council to reach an agreement on the proposal for the Single Resolution Mechanism by the end of the year so that the proposal could be adopted before the end of the current parliamentary term. As regards the proposals for the Bank Recovery and Resolution Directive and the Deposit Guarantee Schemes Directive, the European Council urges the Council to adopt both legislations by the end of this year.

The Lithuanian Presidency will put a high priority on all these elements and work in line with the European Council conclusions.

Progress on other legislative proposals in the field of financial markets reforms

The Lithuanian Presidency acknowledges the need to ensure sound, transparent and resilient financial markets and to strengthen the investor protection in Europe. In this respect, the Presidency sees the Markets in Financial Instruments Directive and Regulation as well as the Central Securities Depositories Regulation as of high importance. The Presidency foresees to continue negotiations on these dossiers striving for an agreement with the co-legislators.

Comprehensive approach to money laundering is vital for the sound functioning of financial markets. The May 2013 European Council stressed this element at the same time stating that the revision of the third Anti-Money Laundering Directive should be adopted by the end of the year.

In the insurance sector, the Presidency sees further negotiations on the Omnibus II file as of high importance for bringing more clarity to the European insurance market. Therefore, the Presidency will resume negotiations on this file.

The Lithuanian Presidency will strive to make progress on other important dossiers as well, including Payment Accounts Directive.

European Semester

The implementation of the country-specific recommendations is key to ensure the credibility of this coordination mechanism. Given that the European Semester is still quite a recent establishment, the Lithuanian Presidency will devote time to draw another conclusions on the lessons learned from this year’s exercise complementing the insights drawn after the last year’s round.

The cycle of the next European Semester (2014) will also be launched under the Lithuanian Presidency with an exchange of views on the Annual Growth Survey and the Alert Mechanism Report in different Council formations.

Deepening and strengthening of the EMU

Based on the European Council conclusions, the Lithuanian Presidency will further facilitate the discussions on the deepening of the EMU, aiming at concrete results that can further enhance the effective functioning of the euro area while preserving the integrity of the single market.

Implementing the newly established economic governance framework

Implementation of the recently agreed package of reforms (Two-Pack, Six-Pack, Treaty on Stability, Coordination and Governance) is key to restoring credibility in surveillance of Member States’ budgetary and economic policies.

The Presidency will focus on smooth and effective implementation of the newly agreed rules for the stronger ex-ante budgetary monitoring process of the euro area Member States. It will seek to ensure application of the necessary provisions contained in the Stability and Growth Pact as well. Attention will also be dedicated to processes of the transposition of the Treaty on Stability, Coordination and Governance into national systems.

Further alignment of the EU support infrastructure and corresponding enhanced surveillance procedures amongst euro and non-euro area Member States is also an important element towards fully effective economic governance framework. The Presidency will therefore undertake to update the Balance of Payments facility for the non-euro area Member States accordingly.

Taxation

Issues relating to the fight against tax fraud and evasion will be a priority during the Lithuanian Presidency in the taxation area. In this context, the Presidency will seek to reach political agreement on the Savings Taxation Directive and start work on a new legislative proposal from the Commission to extend the scope of the Administrative Cooperation Directive in order to improve measures for the automatic exchange of information.

The Lithuanian Presidency will also aim for progress in discussions on the rules governing VAT treatment on vouchers. In addition, the discussions will be continued regarding the draft directive on Common Consolidated Corporate Tax Base (CCCTB) concentrating on the work of building common corporate tax rules.

The Presidency will carry forward the discussions on financial transaction tax with a view to making progress. The work will also be continued on the proposal for the Energy Taxation Directive.

The EU budget for 2014

A particular emphasis will be given to the adoption of the EU budget for 2014, which will constitute the first budget of the 2014–2020 MFF. Its timely adoption would ensure smooth and continuous financing of the EU priority areas.

Representing the EU in the G20

In preparation for these meetings, Lithuania will contribute to the coordination of the common EU position in priority areas of the G20 regarding the global economic situation and growth, financing for investment, financial market regulation, tax transparency, reform of the international financial architecture and other relevant issues.

The ECOFIN will agree on the EU terms of reference for the EU participation in the G20 meetings of Finance Ministers and Central Bank Governors to be held in Moscow on 19-20 July 2013 and in Washington on the 10-11 October 2013 together with the IMF/World Bank annual meeting on 11-12 October 2013.

Full Work Programme

Speech by President Van Rompuy at the opening of the Lithuanian Presidency of the Council

President Barroso welcomes ambition of the Lithuanian Presidency of the Council, 4.7.13

Statement by President Barroso on the Lithuanian Presidency for the European Parliament Plenary, 3.7.13

Schulz thanks Ireland, looks forward to successful Lithuanian presidency, 3.7.13

© European Council