During the Ecofin meeting in Brussels, the EU economy ministers addressed several prominent issues. From optimism on new ones Eurobond of 150 billion euros guaranteed by the EU To finance the common defense, up to the tax measures on extra-European online trade, the agenda is dense.
In the foreground also the declarations of the presidency on duty on the urgency of further interventions to support the defense industry, the agreement on new VAT rules for purchases from abroad and an Italian proposal to extend the recovery plan beyond 2026 without generating new debt.
European defense, towards an Ecofin agreement on Eurobonds of 150 billion
One of the central points discussed by ECOFIN is the creation of a European loan mechanism for 150 billion euros intended to finance common defense projects. The tool, known as Safe (Security Action for Europe)provides for subsidized loans to member countries financed through the EU common debt issue, in fact a new Eurobond guaranteed by the Union.
The Polish Presidency of the Council pushes for an agreement by the end of May, avoiding postponements at the top of the June leaders. According to European sources, there is “Determination to proceed quickly” Despite remaining knots on national budgets. Ministers support a quick understanding for “Unlock hundreds of billions of euros” to invest in defense. “Safety is our maximum priority,” said Andrzej Domański, president on duty Ecofin, hoping for the adoption of the Safe regulation “As soon as possible”.
Temu and Shein, the fiscal tight on the packages under 150 euros has been postponed
On the online trade front, Ecofin has decided to postpone a possible fiscal narrow on low -value packages from Asian e-commerce platforms such as Lean And Shein. The European Commission had proposed to eliminate the VAT exemption and duties for imported assets of less than 150 euros, measures aimed at affecting the influx of small packages from China and other non-EU countries.
In fact, in fact, low amount shipments do not pay VAT or customs rates, making very competitive offers of non -European sites. In 2025 the entry of approximately is estimated 4 billion of low value packagesalmost three times the volume of 2022, with growing doubts about the quality and safety of goods.
Despite the support of economies of weight such as France and Italy at the abolition of the threshold of € 150, the advice is divided on the topic and chose not to proceed immediately. The discussion on this “mini tax” is postponed to the negotiations on the reform of customs code EU in progress, thus postponing any decision to a subsequent phase.
Foreign e-commerce, Ecofin approves the new VAT directive for imports and online sales
Despite the postponement on the node of small packages, the Ecofin has reached an important agreement in the tax field: Green light to the proposal for the EU directive on VAT for remote sales and imports. The ministers have agreed on a common position on new rules that aim to improve the collection of VAT on imported goods.
Based on the directive, the responsibility to collect VAT will no longer fall on the final consumer at the time of import, but directly on Online sales platforms that facilitate the transaction. This mechanism will therefore move the tax burden to e-commerce operators, encouraging them to use the system of the single desk for VAT to import (iSS) already prepared at the Community level. The goal is recover VAT revenue So far processed or not received on millions of non-EU purchases, guaranteeing more equilibriums for trade.
After the “General approach” Reached in the Council, the text will move on to the European Parliament for consultation before the final adoption.
PNRR over 2026, Giorgetti’s proposal to ECOFIN: no to new defense debt
During the summit, Italy proposed to extend the PNRR over 2026 to finance military spending without generating new debt. Economy Minister Giancarlo Giorgetti expressed support for the Safe plan, but invited to carefully evaluate the impact of loans on public finances.
Has suggested to explore private sources and use European funds already allocated, such as the Recovery Fundto ensure greater budget flexibility. The Italian position aims to use existing EU resources before resorting to new common debt.
