The Council has reached an agreement on the VAT proposal.
This is an important step in supporting the agreed Customs Reform and providing greater legal certainty for businesses and Member States.
The reform delivers two key improvements:
- First, it removes the €150 threshold for the use of the Import One-Stop Shop.
- And second, it extends the VAT rules on distance sales of imported goods to certain supplies from customs warehouses.
This will simplify compliance for businesses, strengthen consistency between VAT and customs rules, and give administrations and operators the necessary lead-time for implementation, including on IT systems.
Unfortunately, there was no agreement on the tobacco taxation package today.
The revision aims to update rules that are now outdated and modernise the EU's tobacco tax framework.
It would be an important step forward in supporting our public health objectives.
And it's needed to bring our tax rules into line with the realities of today's market and new tobacco products.
From the Commission's side, we will continue to support the Irish Presidency on reaching an agreement.
Next, to Ukraine.
I updated minsters on last week's disbursements under the Ukraine Support Loan.
And on our proposal for allocating the loan in 2027: €31.7 billion for the defence leg and €13.3 billion for the budget support leg.
We aim to begin disbursements at the start of next year, also in light of liquidity challenges Ukraine is facing.
We are also working to address additional funding needs for next year so that Ukraine has the necessary resources to defend its people and continue its fight for survival.
As you know, the EUCO intends to return to this issue this month, and we are preparing this work.
The Commission will also work to help Ukrainians through the winter, providing humanitarian aid and support for energy infrastructure.
I want to be clear that our support for Ukraine is not just about solidarity.
It is an investment in Europe's own security.
Turning to the Recovery and Resilience Facility.
Since October, Austria, France and Sweden have received their final payments, joining Denmark in successfully closing the Facility.
Latvia, Germany, Czechia and Finland are set to follow shortly.
For the remaining Member States, we are working intensively to assess their final payment requests.
Overall, the overwhelming majority of milestones and targets has been achieved.
So, we are firmly on track for a successful closure.
Next, I presented the Commission's 2026 Overview Report on simplification, implementation and enforcement.
Excessive complexity is a tax that Europe can no longer afford.
The report details how the Commission is becoming more disciplined when writing new rules.
And more focused on the results they deliver on the ground.
So far, the simplification initiatives proposed could deliver savings of more than €22 billion per year,
including €7.7 billion for our small and medium-sized enterprises.
Today, I stressed the importance of keeping up the momentum.
And I called on the Council and the European Parliament to embed better regulation into the way they work:
- by applying the principle of "simplicity by design",
- and by assessing the impact of substantial amendments during the legislative process.
I welcome the Council's adoption of its 2026 conclusions on EU statistics.
They confirm continued advances in the completeness, timeliness and relevance of European statistics.
I particularly welcome the continued improvements in key European economic indicators.
And the cooperation of national authorities in providing reliable data on defence expenditure.
This has been crucial for ensuring the consistent application of the flexibility available under the National Escape Clause.
I also strongly support the European Statistical System's efforts to strengthen access to administrative and privately held data and prepare statistics for the challenges of the digital age.
To complement these efforts – and reduce administrative burdens – the European Commission is preparing a simplification package for early next year.
Finally, I welcome the Council's approval of Italy's request to activate the national escape clause for defence spending and the additional request to broaden its scope for energy resilience.
