Minister McGrath attends July ECOFIN/Eurogroup meeting in Brussels

The Minister for Finance Michael McGrath has today (Thursday 13 July) travelled to Brussels to represent Ireland at the Economic and Financial Affairs Council (ECOFIN) and Eurogroup meetings. Minister McGrath will also sign a declaration of support for a new European Investment Bank (EIB) initiative to support reconstruction and recovery in Ukraine. In relation to the meetings, Minister McGrath said:

"This two-day stretch of intense meetings is a chance for myself and my Ministerial colleagues at ECOFIN and the Eurogroup to take stock of where we are in our efforts across so many work streams that will have a tangible impact on the day to day lives of our citizens. This is the first ECOFIN of the Spanish Presidency and I look forward to working with them closely in the months ahead. I also welcome the opportunity to sign a letter of support for the European Investment Bank’s EU4U trust fund initiative, it’s latest support measure for resilience and recovery in Ukraine."

Starting at the Eurogroup, Minister McGrath will join his ministerial colleagues in discussing the economic and budgetary situation in the euro area and the fiscal policy orientations for 2024. The Eurogroup will then have an exchange of views on the international role of the euro.

At the Eurogroup in inclusive format, Ministers will discuss the current state of European capital and financial markets. The Eurogroup will finish with a stocktake on the digital euro project.

Following Eurogroup, Minister McGrath will sign a letter with a number of other member states in support of a European Investment Bank (EIB) initiative to set a trust fund (EU4U) to support reconstruction and recovery in Ukraine.

On Friday 14 July Minister McGrath will attend the Economic and Financial Affairs Council (ECOFIN). This meeting will start with a working breakfast where Ministers will discuss current economic developments and emerging challenges.

Following this the Commission will present a proposal on the future financing of the EU budget which Ministers will discuss. Ministers will then discuss financial support to Ukraine in the context of the Multiannual Financial Framework (MFF) mid-term revision. This will include engagement on the EU Commission proposal to create a new instrument, the Ukraine Facility, which could cater both for short-term recovery needs and medium-term reconstruction and modernisation of Ukraine.

Discussion will turn to Customs reform where the Presidency will present a steering note on the customs reform package and invite Ministers to share their views.

Spain takes over the Presidency from Sweden for this ECOFIN. As happens for every new Presidency, their Minister will present their work programme for the months ahead.

Ministers will vote on the Council Conclusions on the 2023 in-depth reviews under the macroeconomic imbalance procedure (MIP).

Economic recovery in Europe will be discussed via an exchange of views on the implementation of the Recovery and Resilience Facility (RRF) with the Council also aiming to adopt Council Implementing Decisions (CIDs) on this matter. One of these relates to the Irish National Recovery and Resilience Plan (NRRP) which has been subject to a number of amendments. It is expected that the Council Implementing Decision to accept these amendments will be formally approved by ECOFIN, 14 July.*

Ministers will give guidance for further work as regards the preparation of the G20 meeting of finance ministers and central bank governors meeting of 17-18 July 2023. Then the Spanish Presidency will provide an update on the recent broad endorsement and publication of an Outcome Statement on the Two-Pillar solution to address the tax challenges arising from digitalisation of the economy by the OECD Inclusive Framework on BEPS.

Notes

Under the Recovery and Resilience Facility (RRF) Regulation, a Member State can request a revision of its plan in limited and well-defined cases, including where objective circumstances make specific milestones or targets no longer achievable within the original timeline. On 22 May, Ireland requested a modification to the National Recovery and Resilience Plan with targeted amendments to two measures. This, in effect, moves three targets and two milestones from the First Payment Request to the Second Payment Request. The Commission's positive assessment of that request was adopted on 26 June. ECOFIN adopted a Council Implementing Decision for revision of Ireland’s Plan today (14 July).