Luxembourg Remains ‘Optimistic’ About EU Tobacco Taxation Negotiations

On Monday 9 November 2026, Luxembourg’s Minister of Finance, Gilles Roth, attended the Eurogroup and Economic and Financial Affairs Council (ECOFIN) meetings in Brussels.

According to Luxembourg’s Ministry of Finance, at the Eurogroup meeting, finance ministers reviewed the latest macroeconomic and budgetary developments in the euro area. The European Central Bank (ECB) presented its progress report on the wholesale digital euro, which is intended for payments and settlements between financial institutions. Ministers were also updated on the progress of the trilogue negotiations concerning the digital euro.

Ministers then held their six-monthly exchange of views with Claudia Buch, Chair of the Supervisory Board of the Single Supervisory Mechanism, and Dominique Laboureix, Chair of the Single Resolution Board, on recent developments in the banking sector. Discussions focused in particular on the effects of digitalisation and artificial intelligence on banking activities, as well as ways to strengthen resilience, continue simplification and deepen integration within the sector in order to enhance its competitiveness.

Furthermore, following the announcement of Christine Lagarde's resignation as President of the European Central Bank, effective 7 February 2027, euro area finance ministers reviewed the candidates for her successor, as well as other vacancies on the ECB's Executive Board.

In the presence of NATO Secretary General Mark Rutte, finance ministers held an in-depth discussion on European security. They highlighted the need to ensure sustainable and credible financing for defence efforts, based on the efficient use of public resources and the mobilisation of private capital.

At the ECOFIN Council meeting, finance ministers discussed the legislative package on tobacco taxation. However, the file could not be adopted following today's discussions. Work will continue over the coming days under the Irish Presidency.

Minister Roth commented: "Luxembourg has made a constructive contribution to the negotiations. We were in a position to accept the compromise proposed by the Irish Presidency. I remain optimistic about the prospects of reaching an agreement over the coming weeks."

In addition, ministers continued their discussions on developments relating to Russia's war of aggression against Ukraine.

The European Commission presented various annual reports on progress in simplification, implementation and enforcement of European Union legislation, as well as their economic impact.

Moreover, finance ministers reviewed the outcomes of the meeting of G20 finance ministers and central bank governors, which took place in Bangkok in October as part of the G20 annual meetings.