The ministers of Economy and Finance of the European Union are meeting this Thursday and Friday in Luxembourg to analyze the economic impact of the recent tensions in the energy markets. On the table will be the rising costs of gas, electricity, and oil, their effect on inflation and on the economic activity of the bloc, as well as the reactivation of the debate on a possible European tax on the extraordinary profits of energy companies.
The issue will be addressed on Thursday in the Eurogroup, where Spain will propose a combination of immediate measures to protect consumers, businesses, and the most vulnerable groups, along with a structural strategy based on electrification, the promotion of renewable energies, and the strengthening of networks. The goal is to reduce the dependence of the European economy on future external "shocks," according to sources from the Ministry of Economy.
On Friday, during the breakfast prior to Ecofin, the finance ministers will again discuss the issue of the additional profits of energy companies, at the request of six member states that are calling for a common European framework to tax them. Thus, the exchange initiated at the informal meeting in Dublin will be resumed, where Spain asked the Commission to examine the situation and assess possible initiatives to ensure a more equitable distribution of costs.
However, diplomatic sources emphasize that "considerable differences" persist between national positions and "considerable difficulties" in articulating a shared response, and they stress that this new debate does not imply that Brussels has changed its stance on presenting a legislative proposal.
In the Spanish case, it is expected that the European Commissioner for Climate, Wopke Hoekstra, will use the discussion to offer updates on the "plans" and "intentions" of the community executive. Nevertheless, sources from the Economy admit that it is likely that the Commission has not yet completed its analysis of the extraordinary profits, given that it is an assessment that "no one wants to be rushed and careless."
In parallel, Italy's request for fiscal rules to allow for greater leeway against the impact of rising energy costs could sneak into the discussions among ministers, although it is not formally included in the agenda.
On this point, Spain considers that the current framework already offers the "necessary flexibility" to incorporate this type of exceptional circumstances, although it is separately studying the option of activating the national escape clause, an alternative that "is still being evaluated."
Agreement on the supervision of financial markets
The main legislative file of Ecofin will be the package on integration and supervision of financial markets, regarding which the Irish presidency aims to achieve a common position of the Twenty-Seven this Friday, after also dedicating the informal dinner the night before to trying to bridge positions.
Spain declares itself "firmly committed" to closing a general agreement in this session and considers it feasible to reach a compromise, despite the complexity of a text with which the EU intends to advance in the integration of capital markets and strengthen the Union of Savings and Investments.
Among the still open points are the criteria that will determine which large operators, due to their weight in several EU countries, will move from being under the supervision of national supervisors to being under the direct supervision of the European Securities and Markets Authority (ESMA), as well as the distribution of contributions from national authorities to finance this body.
With the parameters currently proposed, Deutsche Börse, one of the main stock market operators on the continent, would be excluded from that supervision at the European level and would remain under national control, according to sources from the Economy, who defend that the proposal has a "technical and solid" basis and adequately reflects the pan-European nature of the different actors.
Regarding crypto asset providers, the compromise text prepared by the Irish presidency establishes a differentiation between those considered significant and those that are not, an approach that Spain interprets as a possible "landing zone" to close the deal.
Volatility in currencies and the international role of the euro
Earlier, at the meeting on Thursday, the eurozone ministers will analyze together with the European Commission and the European Central Bank (ECB) the financial situation, with special attention to the foreign exchange market and the evolution of the single currency in a context of greater volatility.
Spain will take advantage of this exchange to advocate for strengthening the international role of the euro, a purpose that, in its opinion, requires deepening the Economic and Monetary Union, advancing the integration of capital markets, and maintaining "ambitious" debates such as the creation of a European safe asset.
Spain insists on entering the ECB's governing body
Apart from the formal agenda, it is expected that the president of the Eurogroup will inform the ministers about the next steps to fill the vacancy that Isabel Schnabel will leave in the Executive Board of the ECB, after the president of the institution, Christine Lagarde, has sent the letter that officially activates the process.
Sources from the Ministry of Economy explain that it will be the president of the economic forum who sets the schedule and decides in which meeting a decision will be made, although they insist that no appointment is expected in Luxembourg and that the matter could be addressed from a "more logistical" perspective.
Spain maintains its goal of achieving a position of relevance in the Executive Board, with the former governor of the Bank of Spain Pablo Hernández de Cos as the Government's candidate for the future presidency of the ECB, and asserts that the electoral call will not alter the contacts to promote a Spanish candidacy, which will continue with the same "intensity," "enthusiasm," and "momentum."