European Commissioner for Trade and Economic Security Valdis Dombrovskis welcomed the ECOFIN Council's general approach on the Commission's proposal to strengthen the carbon border adjustment mechanism (CBAM), announced at a press conference on 12 June 2026. The general approach aims to close loopholes and improve CBAM's efficiency, ensuring a level playing field for European industry against international competitors.
Dombrovskis also provided updates on Ukraine support, noting that the Memorandum of Understanding and Loan Agreement for Macro-Financial Assistance entered into force last week, clearing the path for first disbursements this month. On sanctions, the Commission prepared the 21st sanctions package earlier this week, targeting finance, energy, and trade, and proposing a comprehensive sectorial visa ban for ex-combatants of Russian armed forces and proxy groups. Dombrovskis called for swift adoption.
Regarding the 2026 European Semester Spring Package, Dombrovskis presented its focus on competitiveness and fiscal sustainability, with country-specific recommendations proposed for Council approval in July. He also announced that the Commission found Bulgaria non-compliant with the deficit criterion and will propose opening an excessive deficit procedure, while welcoming the Council's decision to abrogate the procedure for Malta and endorse Spain's activation of the national escape clause for defence.
On the Recovery and Resilience Facility, Dombrovskis reported that since May, €18.6 billion has been disbursed to six Member States, bringing total disbursements to €426 billion (74% of the overall envelope). He welcomed the Council's endorsement of amendments to streamline recovery and resilience plans for Slovakia, Spain, Poland, Portugal, and Belgium, noting the 31 August deadline for implementing all milestones and targets.
Finally, Dombrovskis highlighted a constructive policy debate on the market integration and supervision package, a key component of the Savings and Investments Union, aimed at removing barriers and unlocking the EU single market for financial services.
The speech contained concrete proposals: the CBAM general approach, the 21st sanctions package, the excessive deficit procedure for Bulgaria, and the streamlined RRF plans. The policy orientation is towards strengthening EU trade defence, maintaining fiscal discipline, and deepening financial market integration. The speech did not address foreign policy towards third countries beyond Ukraine sanctions.
Stakeholder impacts: EU producers benefit from a stronger CBAM leveling the playing field, but may face higher compliance costs. EU consumers may see slightly higher prices on carbon-intensive imports. National authorities of Bulgaria face increased fiscal scrutiny, while Malta and Spain gain relief. Financial services firms could benefit from greater market integration under the Savings and Investments Union.