Latvia's Ministry of Finance announced that State Secretary Baiba Bāne and ministry officials will attend the Eurogroup and the EU Economic and Financial Affairs Council (ECOFIN) meetings in Brussels on 12–13 May, with discussions set to focus on the Banking Union, the digital euro and the proposed Security Action for Europe (SAFE) instrument. In the Eurogroup’s expanded Banking Union format, ministers are due to discuss a report on the Banking Union, the Single Resolution Board’s latest activities and European Stability Mechanism issues including preparations for its June annual meeting. The wider expanded Eurogroup agenda also includes an update on G7 and global economic developments and an assessment of preparatory work on the digital euro. ECOFIN will consider a draft Council regulation to establish SAFE as a pillar of the ReARM plan, under which the EU would borrow in capital and financial markets and provide member states with long-term loans guaranteed by the EU budget’s permanent headroom, with a maximum total envelope of EUR 150 billion. Ministers are also expected to approve a general approach on a directive on VAT rules for distance sales of imported goods and import VAT, following a shift from proposals to make the Import One Stop Shop (IOSS) mandatory for third-country platforms towards an alternative approach intended to incentivise IOSS use, alongside discussions on the Savings and Investment Union communication, planned securitisation reforms, the economic and financial impact of Russia’s war against Ukraine, and implementing decisions linked to the Recovery and Resilience Facility.

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