ECOFIN and Eurogroup focus on defence financing and tobacco taxation
Today, Minister of Finance Taurimas Valys will participate in meetings of the European Union’s Economic and Financial Affairs Council (ECOFIN) and the Eurogroup (EG) in Brussels, where discussions will focus on challenges related to defence financing, the taxation of tobacco products, and continued support for Ukraine.
The ECOFIN meeting will address a European Commission (EC) proposal to amend the Directive on tobacco taxation, aiming to harmonize the definitions and taxation of tobacco products, tobacco-related products, and raw tobacco. According to the Minister of Finance, these amendments would bring e-cigarette liquids, heated tobacco products, and other novel tobacco products within the scope of the directives. This would ensure the smoother functioning of the domestic market, provide legal clarity, and reduce the interchangeability of alternative products.
The meeting will also cover measures for continued support to Ukraine. T. Valys emphasizes that Lithuania is prepared to consider various potential support options, with the priority being that the solutions implemented are prompt.
"Given the projected scale of Ukraine’s financing needs in 2027, we urge that decisions on additional support measures be taken in the near future to ensure that Ukraine’s budgetary and defence requirements are met," the Minister of Finance stated ahead of the meetings in Brussels. He further emphasized the necessity of continuing active financial diplomacy with other international partners regarding their contributions toward covering Ukraine’s financing gap.
The ECOFIN meeting will also address the economic impact of EU legislation, as well as the European Commission’s progress in reducing administrative burdens, simplifying legal acts, and strengthening the EU’s competitiveness.
During the meeting, the Council’s recommendation regarding a national escape clause (NEC) for Italy and Council conclusions on European statistics will also be approved; additionally, the G20 meeting of finance ministers and central bank governors held on October 15, as well as the implementation of the RRF (Recovery and Resilience Facility), will be discussed.
“Lithuania submitted its seventh and final payment request under the RRF—amounting to EUR 1.1 billion—back in late September. The European Commission, having assessed that all the plan’s milestones and targets have been fully met, will disburse another EUR 992.8 million to Lithuania at the end of December. In total, nearly EUR 4 billion in funds will have been injected into the Lithuanian economy under the RRF over the course of five years,” T. Valys expressed his delight.
During the Eurogroup meeting, participants will discuss macroeconomic and fiscal developments in the euro area, as well as challenges related to energy prices, the development of the digital euro, and innovations in central bank wholesale payment systems. The meeting will also cover risks within the EU banking sector and progress in strengthening its resilience, while a discussion with NATO Secretary General Mark Rutte will address long-term challenges regarding defence financing.
The visit to Brussels also includes bilateral meetings with European Commission members Valdis Dombrovskis and Wopke Hoekstra, as well as with the finance ministers of Poland and Belgium.