Council of Economic and Financial Affairs Ministers, ECOFIN, held in Brussels on July 13th 2010 have gone through the measures to control excessive deficits taken by Member states in the past months. Over the meeting Ministers have also set out its position with a view to continuing negotiations with the Parliament about financial supervision package. The Council also adopted measure to simplify VAT invoicing and agreed on Estonia accession to the Euro.

The meeting of the European Council of Ministers of Economic and Financial Affairs, ECOFIN, held in Brussels on July 13th 2010, was also the occasion for Belgian presidency to present its priorities within the working programme for this semester. The meeting has also been the follow-up of the June Council, especially in regard to economic governance coordination and financial system stability.

Excessive deficit control measures

The Council opened on July 13th excessive deficit procedures for Bulgaria, Denmark, Cyprus and Finland and issued recommendations on corrective action to be taken. According to the data notified by the Member States concerned, the 3 % bar was effectively exceeded by Bulgaria and Cyprus in 2009 and is expected to be exceeded by Denmark and Finland in 2010.

The Council also examined the results of the measures adopted by the 13 member states against whom it had already opened procedures on excessive deficits funding that measures are so far adequate and there is no need to any supplementary measure in this regard.

Financial supervision package negotiations with the Parliament

The Council has set out its position with a view to continuing negotiations with the European Parliament on a package of measures which are intended to reform the European framework for supervision of the financial system, in the wake of the global financial crisis.

Most of these texts of the proposals for measures for financial markets supervision are subject to the procedure involving codecision between the Parliament and the Council. The negotiations with the Parliament are intended to allo their adoption at first reading, so that the European Systemic Risk Board and the three new supervisory authorities can be operational from 1 January 2011.

The European Parliament has decided to postpone the vote to a subsequent plenary session. The Council has agreed on a political approach on the compromise proposals presented by the Presidency, with a view to facilitating continuing negotiations. It has thus strengthened the negotiating mandate given to the Presidency, while allowing it the necessary degree of flexibility about the wording of the texts.

Europe 2020 Strategy

The Council has taken an important step in the implementation of the new Europe 2020 strategy for jobs and growth, by adopting a recommendation establishing new broad guidelines for the economic policies of the Member States and of the Union.

The recommendation, together with a draft Decision on guidelines for employment policies, forms "integrated guidelines" for structural reforms which will have to be carried out over the next few years under the new strategy.

Simplified rules for VAT invoicing

The Council has adopted a directive aimed at simplifying VAT invoicing requirements, in particular as regards electronic invoicing. The new directive sets out to ensure the acceptance by tax authorities of e-invoices under the same conditions as for paper invoices, and to remove legal obstacles to the transmission and storage of e-invoices.

It also comprises measures to help tax authorities ensure that tax is paid so as to better tackle VAT fraud. These include establishing deadlines for the issuance of invoices, thus enabling speedier exchange of information on intra-EU supplies of goods and services.

Finally, the Council has decided to allow Estonia to adopt the euro as its currency with effect from 1 January 2011.