This Week in Finance — Brussels (#24, 2026)
Foreign investment screening regulation adopted; Romania faces Council decision over deficit response; Commission approves support for Romania's development bank; digital euro moves ahead; VAT fraud debate.
June 21, 2026 to June 27, 2026
Foreign investment screening regulation adopted; Romania faces Council decision over deficit response; Commission approves support for Romania's development bank; digital euro moves ahead; VAT fraud debate.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• ✒️ EP Committee Work
• 📚 What We're Reading This Week
European Commission
Commission approves State aid for Romania's investment and development bank
On 25 June 2026, the European Commission approved Romania's planned capital increase of €1 billion for Banca de Investiții și Dezvoltare S.A. (BID), including €100 million financed by the Recovery and Resilience Facility. The approval extends the State guarantee backing BID's operations from 2028 to 2032 and broadens BID's mandate to scale-up support for strategic sectors such as defence, high-tech manufacturing, and cybersecurity. The measures are assessed under Article 107(3)(c) of the Treaty on the Functioning of the EU (TFEU), found to address identified market failures and contain safeguards to avoid undue negative effects on competition and trade. BID will continue its lending, guarantee, and equity activities, targeting companies and projects that face difficulties in securing adequate market finance, and will be monitored according to EU state aid rules.
Commission to issue €80 billion in EU-Bonds in second half of 2026
On 23 June 2026, the Commission announced plans to issue up to €80 billion in EU-Bonds for the second half of 2026, bringing total annual EU-Bond issuance to €180 billion. Proceeds will fund policy programmes such as NextGenerationEU, the Ukraine Support Loan, the Security Action for Europe (SAFE) instrument, and other EU initiatives. Issuance will continue under the unified funding approach via syndications and auctions. The Commission plans four syndications and six auctions, maintaining the liquidity and price reference of the EU-bond curve. Short-term EU-Bills will supplement the funding programme.
Commission disburses €3.2 billion to Ukraine under macro-financial assistance
On 24 June 2026, President Ursula von der Leyen announced the disbursement of €3.2 billion to Ukraine as the first instalment of macro-financial assistance within the €90 billion Ukraine Support Loan (Regulation (EU) 2026/467). The payment is part of €8.35 billion scheduled for 2026 and is contingent on Ukraine's fulfilment of seven policy conditions, including tax reforms and customs alignment. Further budgetary and defence-support disbursements, including €6 billion for drone procurement, will follow. The Memorandum of Understanding signed in May 2026 outlines reforms improving public investment and financial management. Since the war began, total EU and Member State support for Ukraine exceeds €211.3 billion.
EU Legislation (Official Journal)
Regulation (EU) 2026/1386 on the screening of foreign investments in the Union adopted
On 26 June 2026, Regulation (EU) 2026/1386 was published, establishing a harmonised EU framework for screening foreign investments. The regulation repeals Regulation (EU) 2019/452 and mandates all Member States to screen foreign investments with implications for security or public order. The new regime introduces minimum harmonisation of screening mechanisms and creates a cooperation mechanism for information exchange between Member States and the Commission. Sensitive sectors covered include defence, critical infrastructure, semiconductors, AI, financial market infrastructure, and strategic raw materials. The regulation applies from 17 January 2028, with provisions on reporting and secure systems effective from 16 July 2026. (CELEX: 32026R1386)
Council Decision (CFSP) 2026/1437 extends restrictive measures against Russia
On 26 June 2026, Council Decision (CFSP) 2026/1437 formally extended restrictive measures in view of Russia's actions destabilising Ukraine, renewing the application of Decision 2014/512/CFSP for twelve months, until 31 July 2027. The update responds to the continued violation of international law and United Nations Security Council resolutions by the Russian Federation.
Council Decision (EU) 2026/1413: Romania found not to have taken effective action on deficit correction
Published on 25 June 2026, Council Decision (EU) 2026/1413 determined that Romania had not taken effective action in response to the Council Recommendation of 21 January 2025 to correct its excessive government deficit by 2030. The Council cited net expenditure growth exceeding recommended limits, a rising deficit (9.3% of GDP in 2024), and delayed fiscal adjustments including reforms to Romania's tax framework.
EU Council
Upcoming Economic and Financial Affairs Council (ECOFIN) meeting scheduled for 10 July 2026
The Economic and Financial Affairs Council is set to convene on 10 July 2026.
Eurogroup meeting scheduled for 9 July 2026
The Eurogroup will meet on 9 July 2026.
EP Committee Work
MEPs discuss VAT Fraud with EPPO, OLAF and Eurofisc
On 25 June 2026, the CONT and FISC committees held a joint hearing on VAT fraud, featuring contributions from Laura Kövesi (EPPO), Petr Klement (OLAF), and Marina Marinelić (Eurofisc Chair). The discussion addressed strengthening administrative and judicial cooperation, improving access to VAT data, and enhancing fraud detection mechanisms. MEPs questioned the invited speakers on priority actions and resource needs for combating VAT fraud, including digitalisation and coordination between national and EU authorities.
Economics committee MEPs quiz ECB boss Lagarde
On 22 June 2026, the ECON committee held its quarterly monetary dialogue with ECB President Christine Lagarde, following the Governing Council's rate increase. Lagarde reported confidence in inflation returning to target but noted an uncertain outlook with inflationary risks and downside growth. MEPs focused on stagflation, the ECB's toolbox for price stability, trade and strategic autonomy policy impacts, food prices, gendered inflation effects, and the global role of the euro. Digital euro next steps were also discussed.
What We're Reading This Week
- Which European cities require nearly 19 years of income to buy a home?: Homebuyers in some European cities now face spending nearly 19 years’ worth of average income to afford a property.
