This Week in Finance — Brussels (#25, 2026)
Commission disburses RRF funds to Spain, Portugal, Belgium, Denmark; Council approves ECB TARGET governance decisions; Major CETA investment dispute rules adopted; Ukraine Facility grants access to partners.
June 28, 2026 to July 04, 2026
Commission disburses RRF funds to Spain, Portugal, Belgium, Denmark; Council approves ECB TARGET governance decisions; Major CETA investment dispute rules adopted; Ukraine Facility grants access to partners.
📋 In This Week's Newsletter
• 📅 This Week's Calendar in Brussels
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• ✒️ EP Committee Work
• 📚 What We're Reading This Week
This Week's Calendar in Brussels
- Committee on International Trade (INTA): On July 06, the European Parliament's Committee on International Trade (INTA) is scheduled to meet. Agenda includes: Chair’s announcements; Conclusion, on behalf of the European Union, of the Interim Agreement on Trade between the European Union and the United Mexican States; Date of next meetings.
- Eurogroup: On July 09, the EU Council's Eurogroup configuration is scheduled to hold an eurogroup ministerial meeting in Brussels.
- Economic and Financial Affairs Council: On July 10, the EU Council's Economic and Financial Affairs Council configuration is scheduled to hold an ministerial meeting in Brussels.
European Commission
Commission partially approves Spain's sixth NextGenerationEU payment request for €5.7 billion
On 1 July 2026, the European Commission gave partial approval to Spain's sixth payment request under the Recovery and Resilience Facility (RRF), totalling €5.7 billion. This instalment covers milestones in biodiversity, sustainable mobility, research, social policy, education, and digital infrastructure. Additionally, the Commission lifted earlier suspensions on two milestones from the fifth payment request after further evidence from Spain, allowing their inclusion in the current disbursement. Three targets in vocational training, telecare, and social entrepreneurship remain pending, with payment for these items subject to further assessment. The Commission's preliminary assessment has been forwarded to the Economic and Financial Committee, which has four weeks to issue an opinion before the payment decision is finalised. Spain has one month to address outstanding targets; unresolved items may be suspended until requirements are met.
Commission greenlights Portugal's €2.32 billion payment request under NextGenerationEU
On 1 July 2026, the European Commission positively assessed Portugal's ninth payment request for €2.32 billion from the Recovery and Resilience Facility. The request pertains to completed milestones in education, waste management, business simplification, forest management, and digitalisation initiatives. The reforms aim to modernise public services, support the circular economy, and enhance access to finance for firms. The Commission has sent its assessment to the Economic and Financial Committee for a four-week review period prior to payment. As of this ninth request, Portugal will have drawn €17.23 billion—close to 79% of its RRF allocation—with 74.54% of milestones and targets complete.
Commission approves Belgium's fourth NextGenerationEU payment request for €567 million
On 1 July 2026, the European Commission approved Belgium's fourth payment request from the Recovery and Resilience Facility, amounting to €567 million. Key measures include ecological connectivity projects in Flanders, streamlined renewable energy assessments in Wallonia, and restrictions on fossil fuel heating in new buildings. These fulfilments bring the total RRF funds paid to Belgium to €3.64 billion, about 69% of its total allocation. The Commission's positive assessment has been submitted to the Economic and Financial Committee, which will deliver an opinion before the payment proceeds.
Commission greenlights Denmark's final RRF payment request, completing its recovery plan
On 29 June 2026, the Commission approved Denmark’s fifth and final payment request under the RRF, worth €359 million. Denmark is the first Member State to reach 100% completion of its RRF milestones, with €1.63 billion now fully disbursed. Notable achievements include over 250,000 zero-emission cars, energy-efficient housing renovations, and supporting vocational education for green skills. The Commission has sent its assessment to the Economic and Financial Committee for review prior to payment. This payment marks the conclusion of all milestones in Denmark’s national recovery and resilience plan ahead of the facility’s closure.
€2.5 billion in Modernisation Fund disbursed for energy investment in 11 Member States
On 1 July 2026, the European Commission and the European Investment Bank announced disbursement of €2.5 billion from the Modernisation Fund, funded by the EU Emissions Trading System, to support 51 clean energy projects in 11 Member States. Projects range from grid modernisation in Hungary to renewable energy investments in Slovenia, and energy efficiency for public buildings in Portugal and Poland. Since January 2021, €23.2 billion has been allocated under this fund, which targets lower-income states to modernise their energy systems and achieve EU climate targets. The Fund operates alongside cohesion policy initiatives and the Just Transition Fund.
Commission presents financial package for Montenegro's EU accession
On 29 June 2026, the Commission adopted a financial package setting out the budgetary terms for Montenegro's accession to the EU. This follows the recent Council agreement to begin drafting the Accession Treaty. The proposal sets out transition measures and funding structures under Chapter 33 (Financial and budgetary provisions), consistent with the Commission's July 2025 long-term budget proposal. The proposal now moves to the Council for further negotiations as part of the wider accession process, with the stated aim of ensuring a smooth financial transition for Montenegro into EU membership.
EU disburses €3.9 billion for Ukrainian drone procurement under the €90 billion Ukraine Support Loan
On 29 June 2026, the European Commission released the first tranche (€3.9 billion) for drone procurement under the €90 billion Ukraine Support Loan, following a prior macro-financial assistance payment of €3.2 billion on 25 June. The funds are part of a €6 billion envelope for defence support in 2026, with further payments planned for ammunition and air defence systems. The Ukraine Support Loan Regulation (EU) 2026/467 structures the package into defence and budgetary aid, with Commission reviews ensuring recipient compliance. The aid supports both short-term resilience and integration of Ukraine's defence industry into the EU.
Joint Statement at the EU-Turkey High-Level Economic Dialogue
On 1 July 2026, the EU-Türkiye High-Level Economic Dialogue convened in Istanbul to review economic cooperation and recent developments. Commissioner Valdis Dombrovskis and Turkish Minister Mehmet Şimşek co-chaired the meeting. Türkiye announced its intent to join the Single Euro Payments Area (SEPA), pending European Payments Council approval. Discussions included the EU's and Türkiye's macroeconomic outlook, productive investments by international financial institutions, and reinforced commitments for regular, continued cooperation on economic security and investment climate.
EU Legislation (Official Journal)
ECB Guideline (EU) 2026/1473 amends TARGET settlement system rules
Guideline (EU) 2026/1473 of the European Central Bank, published on 1 July 2026, amends Guideline (EU) 2022/912 on the next-generation Trans-European Automated Real-time Gross Settlement Express Transfer system (TARGET). Key changes introduce cross-currency settlement for SEPA One-Leg Out Instant Credit Transfers as of 14 November 2026 and new automated liquidity transfer features effective 15 June 2026. The guidance also clarifies eligibility for participants subject to EU restrictive measures and revises fee schedules for RTGS account holders from 1 July 2026.
ECB Decisions (EU) 2026/1520 and 2026/1538 enhance TARGET-ECB customer agreement procedures
On 2 July 2026, Decision (EU) 2026/1520 and Decision (EU) 2026/1538 of the European Central Bank set out the delegated authority for signing, amending, and terminating agreements with TARGET-ECB customers. The measures establish clear authorisation hierarchies intended to streamline operational governance and allow timely responses to customer status changes, effective from 31 July 2026. Terminations relate to customer insolvencies or non-compliance with access criteria under Decision (EU) 2022/911.
eur-lex.europa.eu | eur-lex.europa.eu
Ukraine Facility reciprocal access granted to the US, Canada, Japan, and United Kingdom
On 3 July 2026, the Commission adopted Implementing Decisions (EU) 2026/1441, 2026/1442, 2026/1449, and 2026/1445, granting the United States, Canada, Japan, and the United Kingdom reciprocal access to procurement and grant award procedures under the Ukraine Facility (Regulation (EU) 2024/792). The approvals are valid for one year from 23 July 2026 and follow findings of equivalent support for Ukraine provided by these partners. The measures seek to enhance international cooperation in Ukraine's recovery and reconstruction efforts.
eur-lex.europa.eu | eur-lex.europa.eu | eur-lex.europa.eu | eur-lex.europa.eu
CETA Joint Committee adopts expedited dispute resolution rules for SMEs
Decision No 1/2026 of the CETA Joint Committee, published on 3 July 2026 (2026/1468), establishes supplemental rules for expedited resolution of investment disputes under the Comprehensive Economic and Trade Agreement. The rules target natural persons and SMEs, introducing single-arbitrator procedures and strict timelines for resolution. The measures aim to reduce legal costs and enhance access to dispute settlement mechanisms provided under Chapter Eight of CETA.
CETA Joint Committee issues interpretation on investment protection standards
Interpretation No 1/2026 of the CETA Joint Committee, published 3 July 2026 (2026/1469), clarifies the application of key investment protection provisions in CETA, including fair and equitable treatment, expropriation, and calculation of damages. The guidance details claims standards for arbitral tribunals, addresses measures for climate change, and affirms regulatory rights to protect public welfare and fundamental rights, referencing the Paris Agreement and the Universal Declaration of Human Rights.
EU Council
Employment, Social Policy, Health and Consumer Affairs Council discusses housing and labour mobility
On 29 June 2026, EU ministers approved conclusions on cyber violence and the relationship between demographic trends and housing policy. The Council also reviewed strategies on student housing, labour mobility, the Anti-Poverty Strategy, and gender aspects in job quality.
EP Committee Work
JURI committee publishes draft report on 'EU Inc.' single corporate legal framework
On 29 June 2026, the Committee on Legal Affairs (JURI) published its draft report on the Commission proposal for a regulation establishing the 28th regime corporate legal framework, known informally as 'EU Inc.' Rapporteur René Repasi's report analyses legislative provisions for a single EU statutory model, intended to facilitate cross-border activity and harmonisation in the internal market.
ECON committee holds ordinary meeting on 2 July 2026
The Committee on Economic and Monetary Affairs (ECON) convened in Brussels on 2 July 2026 for its scheduled meeting. The agenda focused on economy and finance topics relevant to legislative and supervisory developments.
What We're Reading This Week
- Google ordered to pay Klarna's PriceRunner €1.7 billion over search abuse: A European court has fined Google €1.7 billion for stifling competition in shopping comparison search results.
