ECOFIN discussed economic support for Ukraine ahead of the European Council on 18-19 December and reached agreement on ensuring better monitoring of burdens for businesses and on principles for simpler financial regulation. ECOFIN also took stock of the Danish Presidency’s compromise proposals on two files, where final agreement among EU Member States is expected next week: the framework for introducing a digital euro and strengthened framework for securitisation as part of the development of EU’s capital markets. The 150-euro duty threshold for parcels will be abolished to combat fraud.
Danish Minister for Economic Affairs Stephanie Lose today chaired the final meeting of the EU’s Economic and Finance Ministers (ECOFIN) under the Danish EU Presidency.
Minister for Economic Affairs Stephanie Lose says:
Today I chaired the final ECOFIN under the Danish EU Presidency. We are facing major geopolitical and economic challenges, and the Danish Presidency has therefore worked to ensure progress and results on our two main priorities: Europe’s security and competitiveness. And we have shown that the EU stands united in supporting Ukraine’s fight for freedom. I would like to thank my European colleagues for the good cooperation in delivering results for Europe.
ECOFIN discussed options for new EU financial support to Ukraine in 2026 and 2027, including the Commission’s proposal for a reparation loan, in preparation for a possible decision at the European Council meeting on 18-19 December.
Danish Minister for Economic Affairs Stephanie Lose says:
Ukraine has an urgent need for financial support, and continued EU leadership is crucial for the country’s fight for freedom and for a lasting and just peace after Russia’s brutal war. We discussed the models presented by the Commission, including support based on Russian assets in the EU, which Ukraine would only have to repay if it receives reparations from Russia. There is a clear shared understanding that we need to take a decision before the end of the year. The Presidency will therefore continue the work with highest priority in the run-up to the European Council.
The minister provided an update on the Danish Presidency’s compromise proposal on the Single Currency Package, including the proposal for a frame-work for introducing a digital euro. The digital euro is an electronic version of euro banknotes and coins, that is, a digital means of payment issued by the European Central Bank. The digital euro aims to make payments in the EU faster, more secure, and less dependent on non-European payment providers. Support for the Presidency’s solutions was noted, and final agreement among EU Member States is expected after concluding technical work next week.
Danish Minister for Economic Affairs Stephanie Lose says:
The digital euro is an important step towards a more robust and competitive European payment system, and can contribute to Europe’s strategic autonomy and economic security, as well as a strengthened international role for the euro.
Strengthening European capital markets: the Savings and Investment Union
ECOFIN discussed the Commission’s proposal package on capital markets infrastructure and supervision, which aims to strengthen the efficiency and integration of the EU’s capital markets and create better conditions for private investment. The proposals aim to remove barriers to investment, modernise financial market infrastructure, and promote more efficient and consistent supervision, including of cross-border activities in capital markets.
The Minister also provided an update on the Danish Presidency’s compromise proposal for a new framework for securitisations, which will strengthen the financial sector’s lending and support for real-economy activity, and noted support among EU Member States. Final agreement among Member States is expected after concluding technical work next week.
Danish Minister for Economic Affairs Stephanie Lose says:
Further mobilisation and attraction of private capital is essential for strengthening the EU’s competitiveness, and the Savings and Investment Union is therefore a key strategic project for the EU economy. Europeans hold large savings in low-interest bank accounts, money that could be channeled to capital market investments that drive growth, innovation and the green transition, and provide higher returns for citizens. Today’s discussions show a broad willingness to strengthen capital markets. I am very pleased that the Danish Presidency is also achieving agreement on the proposal on securitisations, which is the first concrete proposal under the Savings and Investment Union.
ECOFIN discussed the Commission’s recommendation to Member States on the development of supplementary pension schemes with automatic enrolment. The Commission also recommends that Member States establish a national digital pension tracking system so that citizens can obtain a free, consolidated overview of their accrued pension savings. This corresponds to the Danish solution PensionsInfo, where Danes today can see all their pension entitlements in one place.
Danish Minister for Economic Affairs Stephanie Lose says:
“The Commission has recommended that Member States introduce supplementary pension schemes that essentially correspond to the Danish occupational pensions. This is good news, which we have of course supported during the Presidency. These pensions are a win-win-win: they are good for the individual European’s income in retirement, good for capital markets, and good for the sustainability of public finances.”
The Council adopted conclusions establishing principles for simplifying the EU’s financial regulation. The conclusions emphasise proportionality between costs and benefits, removal of overlaps in existing rules, the need to set out key issues in primary legislation and use delegated acts less, and the preservation of the core pillars of financial regulation, including those intended to safeguard financial stability.
Danish Minister for Economic Affairs Stephanie Lose says:
We have adopted conclusions setting out principles and direction for future work on ensuring simpler financial regulation without compromising the core pillars that we strengthened after the financial crisis and that are essential for financial stability, including capital requirements that ensure the robustness of banks. There is great potential for simpler financial regulation that supports the work of banks in contributing to economic activity and investment.
ECOFIN discussed the Danish Presidency’s initiative for better overview and monitoring of costs and benefits of upcoming EU regulation across policy are-as, in order to ensure focus on reducing burdens and proportionality between the costs and benefits of proposals. While the Commission’s so-called Omni-bus packages ensure simplification and reduce burdens from existing EU legislation, the Danish Presidency’s proposal adds value by preventing disproportionate burdens from new EU legislation.
Danish Minister for Economic Affairs Stephanie Lose says:
“It is crucial for businesses and their competitiveness that EU legislation achieves its objectives while we minimise costs and burdens. This requires ongoing and systematic overview of the overall effects for citizens, businesses and authorities. Today’s discussion confirms broad support for the Presidency’s proposal for a new working method in the EU, where we continuously and more systematically monitor and consider the total costs and benefits of proposals under negotiation. It also underlines the need for good impact assessments when important decisions are taken in the EU.”
The Council reached political agreement on abolishing the duty-free low-value threshold of 150 euro, with effect already in 2026. The abolition means that duty will be paid from the first euro on all goods imported into the EU.
European retailers pay duty when they import goods, and online platforms therefore have an unfair advantage in not paying duty on goods below the 150-euro threshold. In addition, the minimum threshold can be used for fraud, allowing purchases that would otherwise exceed the duty limit to be split up, thereby avoiding paying duty.
Minister for Economic Affairs Stephanie Lose says:
EU Member States are seeing local shops close because of large volumes of low-cost imports, especially from China. This has had a serious impact on local shops. By agreeing to abolish the threshold already in 2026, we demonstrate that the EU can act quickly and decisively.
