ECOFIN meeting – Debate on protecting European businesses and farmers
On 11-12 June, Vice-Minister of Finance Januš Kizenevič will attend meetings of the Council of Economic and Financial Affairs Ministers of the European Union (ECOFIN) and the Eurogroup (EG) in Luxembourg. The visit will also include meetings of the Board of Governors of the European Investment Bank (EIB) and the European Stability Mechanism (ESM).
The ECOFIN meeting will seek consensus among Member States on the amendment to the Carbon Border Adjustment Mechanism (CBAM) Regulation. The EC proposes to amend the CBAM Regulation by extending the scope of the CBAM to steel, iron and aluminium value chain products. This is to protect the competitiveness of EU industry and prevent carbon leakage when production is shifted to other countries due to a less stringent regulatory environment.
It is also proposed to empower the Commission to temporarily suspend the CBAM for certain goods, such as the fertiliser sector, if their inclusion causes serious damage to the EU internal market.
"The availability and affordability of fertilisers is crucial for farming and food security, and it is therefore necessary to improve the availability of fertilisers, giving priority to EU-produced fertilisers," Vice-Minister of Finance J. Kizenevič underlined.
According to the Vice-Minister, maintaining a competitive EU fertiliser industry is also strategically important to avoid dependence on imports from third countries. Fertiliser production is directly related to the EU’s food security, economic resilience and strategic autonomy, therefore, in view of the difficult situation in the agricultural sector due to the significant increase in fertiliser prices and their impact on the competitiveness of the sector, Lithuania calls on the European Commission, using the possibility provided for in the new Article 27a, to assess the situation and, if justified, to initiate decisions suspending fertiliser products from the scope of the CBAM Regulation. In the long term, it is also beneficial for fertiliser users to have reliable fertiliser manufacturers and suppliers within close proximity.
In addition, the ECOFIN meeting will hold a policy debate on the Market Integration and Supervision Package, the aim of which is to enable market participants to operate smoothly across Member States, to benefit from economies of scale, to introduce new technologies and to ensure an effective and more harmonised supervisory framework, thus contributing to the completion of the Capital Markets Union. Further powers will be discussed for the European Securities and Markets Authority (ESMA) to be given direct supervisory powers over the largest and most significant market participants operating across borders.
In the margins of the Eurogroup meeting, Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), will present a report on economic and energy security in the EU. The IMF estimates that the energy price shock in 2026 caused by the war in the Middle East has increased oil and gas prices, but its impact on Europe is smaller than during the 2022 crisis. The IMF concludes that a long-term solution to energy security and price stability is a gradual transition to a more efficient and decarbonised energy system. The Eurogroup meeting also foresees a discussion on macroeconomic and fiscal developments in the euro area and an IMF review of euro area policies.
During his visit to Luxembourg, the Vice-Minister of Finance will also attend a meeting of the Board of Governors of the European Investment Bank (EIB).
"Lithuania showed leadership and was the first to engage in a discussion with the EIB on defence loans. This was a historic change that demonstrated the EIB’s concern for the security of the EU’s Eastern border and the resilience of Europe as a whole. In 2025 alone, Lithuania secured more than EUR 1 billion in EIB support, so we welcome this partnership with the bank, which is able to mobilise financial resources so quickly and respond effectively to the needs of Member States," J. Kizenevič stated.