This Week in Finance — Brussels (#26, 2026)
Commission warns Spain over banking directive delays; EU issues €11bn bonds; Digital Euro trilogues set; Council clears Hungary's RRF plan; MiCAR digital assets report adopted.
July 05, 2026 to July 11, 2026
Commission warns Spain over banking directive delays; EU issues €11bn bonds; Digital Euro trilogues set; Council clears Hungary's RRF plan; MiCAR digital assets report adopted.
📋 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 13, the European Parliament's Committee on International Trade (INTA) is scheduled to meet. Agenda includes: Annual report on export controls of dual-use items- Presentation by Denis Redonnet, Chief Trade Enforcement Officer; Chair’s announcements; Chair’s announcements concerning coordinators’ decisions.
- Committee on Budgets (BUDG): On July 14, the European Parliament's Committee on Budgets (BUDG) is scheduled to meet. Agenda includes: Chair’s announcements; Dialogue on the Reform and Growth Facility for Moldova; Dialogue on the Reform and Growth Facility for the Western Balkans.
- Committee on Budgets (BUDG): On July 14, the European Parliament's Committee on Budgets (BUDG) is scheduled to meet. Agenda includes: Chair’s announcements; Date of next meetings; Establishing the European Fund for economic, social and territorial cohesion, agriculture and rural, fisheries and maritime, prosperity and security for the period 2028-2034.
- Committee on Budgets (BUDG): On July 14, the European Parliament's Committee on Budgets (BUDG) is scheduled to meet. Agenda includes: * * *; Chair’s announcements; Combating VAT fraud – the effectiveness of cross-border cooperation when it comes to VAT fraud and its impact on the EU budget.
- Committee on Budgetary Control (CONT): On July 14, the European Parliament's Committee on Budgetary Control (CONT) is scheduled to meet. Agenda includes: * * *; Chair’s announcements; Combating VAT fraud – the effectiveness of cross-border cooperation when it comes to VAT fraud and its impact on the EU budget.
- Subcommittee on Tax Matters (FISC): On July 14, the European Parliament's Subcommittee on Tax Matters (FISC) is scheduled to meet. Agenda includes: Chair’s announcements; Draft agenda; Public hearing on “Omnibus Proposal on Taxation”.
- Committee on the Internal Market and Consumer Protection (IMCO): On July 14, the European Parliament's Committee on the Internal Market and Consumer Protection (IMCO) is scheduled to meet. Agenda includes: Amending Regulations (EC) No 1272/2008, (EC) No 1223/2009 and (EU) 2019/1009 as regards simplification of certain requirements and procedures for chemical products; Chair’s announcements; Date of next meetings.
- Committee on the Internal Market and Consumer Protection (IMCO): On July 14, the European Parliament's Committee on the Internal Market and Consumer Protection (IMCO) is scheduled to meet. Agenda includes: * * ; Chair’s announcements; *** End of electronic vote **.
- Committee on the Internal Market and Consumer Protection (IMCO): On July 14, the European Parliament's Committee on the Internal Market and Consumer Protection (IMCO) is scheduled to meet. Agenda includes: Coordinators' meeting; *** In camera ***.
- Committee on the Internal Market and Consumer Protection (IMCO): On July 14, the European Parliament's Committee on the Internal Market and Consumer Protection (IMCO) is scheduled to meet. Agenda includes: Amending Directives 2000/14/EC, 2011/65/EU, 2013/53/EU, 2014/29/EU, 2014/30/EU, 2014/31/EU, 2014/32/EU, 2014/33/EU, 2014/34/EU, 2014/35/EU, 2014/53/EU, 2014/68/EU and 2014/90/EU of the European Parliament and of the Council as regards digitalisation and common specifications; Amending Regulations (EU) No 765/2008, (EU) 2016/424, (EU) 2016/425, (EU) 2016/426, (EU) 2023/1230, (EU) 2023/1542 and (EU) 2024/1781 as regards digitalisation and common specifications; Chair’s announcements.
European Commission
Commissioner Dombrovskis reviews ECOFIN outcomes and Single Market priorities
During his remarks at the ECOFIN press conference on 9 July 2026, Commissioner Valdis Dombrovskis acknowledged the Irish Presidency’s focus on competitiveness, the digital euro, and the Savings and Investments Union. He reported improved inflation trends in Q2 following earlier energy price corrections, though noted renewed oil price increases tied to geopolitical tensions. Among the Recovery and Resilience Facility milestones, Denmark became the first member to complete all measures in its national plan, with targeted amendments endorsed for eight other countries and Council approval granted for Hungary’s reworked €10 billion plan. Dombrovskis detailed the latest €7 billion in EU support loans to Ukraine. The Council recommended a corrective path for Bulgaria’s excessive deficit and signed off on the Netherlands' revised fiscal plan. Market integration and supervision debates continued as part of the Savings and Investments Union, with the ambition for Council general approach in autumn.
Commissioner Dombrovskis addresses Eurogroup on euro’s international role, digital finance, and fiscal outlook
At the 8 July 2026 Eurogroup meeting, Commissioner Dombrovskis discussed the evolving international role of the euro, referencing the latest ECB report. The analysis suggested fundamentals, not reserve status, drive exchange rates. He supported ongoing progress toward the digital euro, with trilogues commencing shortly, and noted the Eurogroup’s approval of their annual work programme. The Commission’s analysis included the role of artificial intelligence in financial system resilience, supported by the Eurogroup's commitment to digital finance. Finally, Member States were briefed on the euro area's fiscal stance for 2027, with the Commission underscoring the importance of sound national budgets.
Commission refers Spain to Court of Justice for non-transposition of MREL Directive
On 7 July 2026, the Commission referred Spain to the Court of Justice of the European Union for failure to transpose Directive (EU) 2024/1174, amending minimum requirements for own funds and eligible liabilities (MREL). Spain missed the 13 November 2024 transposition deadline, despite formal notice on 31 January 2025 and a reasoned opinion on 17 July 2025. The Directive harmonises MREL and introduces simplified requirements for entities expected to undergo normal insolvency proceedings. The Commission noted potential distortions in competition for Spanish banks and liquidation entities and is seeking financial sanctions.
Commission raises €11 billion in latest EU bond syndication
On 6 July 2026, the Commission conducted its seventh syndicated issuance of 2026, raising €6 billion in new 5-year bonds (maturity: 13 October 2031) and €5 billion via a tap of 20-year bonds (maturity: 12 October 2046). Final order books for both tranches exceeded €83 billion and €94 billion respectively, with oversubscription rates at 13.8 and 18.8 times. This transaction is part of the EU’s €80 billion funding programme for H2 2026. The proceeds support the EU’s Recovery and Resilience Facility, financial assistance to Ukraine, and the Security Action for Europe initiative.
Commission presents EU Action Plan on Cybersecurity and Artificial Intelligence
The Commission announced on 6 July 2026 an Action Plan for AI and cybersecurity, setting structured approaches to AI-driven cyber risks for the finance sector and other critical infrastructure. These measures accompany enforcement of the AI Act from 2 August 2026 and Cyber Resilience Act by end-2027. ENISA and the Commission’s Joint Research Centre will develop testing platforms, while a European blueprint for structured access to advanced AI for cybersecurity is scheduled. The plan includes public-private partnerships and AI Grand Challenge competitions to foster EU digital sovereignty.
EU Legislation (Official Journal)
Alignment of regulatory technical standards for credit risk and LGD input floors
On 7 July 2026, Commission Delegated Regulation (EU) 2026/807 amended Delegated Regulation (EU) 2023/206, updating references and terminology to align with Regulation (EU) No 575/2013 after changes introduced by Regulation (EU) 2024/1623. The amendments chiefly concern standardised and IRB treatment of exposures secured by immovable property, including new LGD input floor values for retail exposures. The Delegated Regulation is based on EBA technical standards and enters into force 20 days after publication in the Official Journal.
EU Council
Eurogroup debates AI, cybersecurity and adopts statement on digital finance
On 9 July 2026, the Eurogroup adopted a fiscal stance statement for 2027 budgets and held discussions on AI and cybersecurity policy in the financial sector. Ministers agreed on steps to promote digital finance.
ECOFIN approves Hungary’s recovery plan, opens excessive deficit procedure for Bulgaria
ECOFIN, meeting on 10 July 2026, debated the market integration and supervision package and endorsed Hungary's revised Recovery and Resilience Facility plan. The Council also opened an excessive deficit procedure for Bulgaria, with guidance for deficit correction by 2029.
EP Committee Work
Digital euro: MEPs approve negotiations with Council
On 9 July 2026, the Economic and Monetary Affairs Committee (ECON) announced Parliament’s readiness to start negotiations on the digital euro regulation. Rapporteur Fernando Navarrete Rojas (EPP, ES) leads the team, with the first trilogue scheduled with the Irish Presidency. The negotiating mandate includes privacy safeguards and rules on distribution by non-euro PSPs.
Digital assets: ECON calls for effective monitoring of tokenisation and stablecoins
ECON adopted a report on 7 July 2026 noting the EU’s pioneering crypto-assets regime (MiCAR) and the need for interoperability, investor protection, and cross-border harmonised market rules. MEP Johan Van Overtveldt (ECR, BE) stressed opportunities and risks of digital assets, support for digital euro development, and calls for improved supervisory practices regarding stablecoins’ euro-denomination and global oversight.
MEPs propose review of taxation for financial services sector
The Committee on Economic and Monetary Affairs (ECON) and the Subcommittee on Tax Matters (FISC) adopted a report on 7 July 2026, led by Matthias Ecke (S&D, DE), calling for examining the VAT exemption for financial services and exploring more coherent sector-wide tax rules in the EU. The assessment supports the broader objective of deeper financial integration and a potential capital markets union.
Yearly report proposes adjustments to EU competition policy, including payments sector
On 7 July 2026, ECON adopted Stéphanie Yon-Courtin’s (Renew, FR) annual competition policy report, suggesting acceleration of Digital Markets Act enforcement, assessment of core platforms including AI and payment systems, and strengthening competitive dynamics. MEPs called for conclusion of Visa/Mastercard fee investigations and examined the digital euro's role in payment market strategic autonomy.
What We're Reading This Week
- Brussels let one small country police Europe’s fintech – and now that guard is backing away: Belgium is retreating from its central role overseeing European fintech firms, raising concerns about regulatory gaps across the bloc.
- Ireland: A journey to Europe’s wildest economy: Ireland experiences rapid economic transformation, attracting global investment while navigating challenges of inequality and sustainability.
