This Week in Finance — Brussels (#27, 2026)
Commission advances major tax simplification package; Parliament debates recast of directive on administrative cooperation in taxation; Council meets on Ukraine and economic sanctions; ECB updates reporting rules; new finance-focused committee hearings.
July 12, 2026 to July 18, 2026
Commission advances major tax simplification package; Parliament debates recast of directive on administrative cooperation in taxation; Council meets on Ukraine and economic sanctions; ECB updates reporting rules; new finance-focused committee hearings.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• ✒️ EP Committee Work
• 📚 What We're Reading This Week
European Commission
Commission outlines measures to strengthen Europe's banking sector and support growth
The European Commission adopted a Communication on the competitiveness of the EU banking sector on 16 July 2026, forming part of the Savings and Investments Union strategy. President Ursula von der Leyen and Commissioner for Financial Services Maria Luís Albuquerque outlined objectives to build a more integrated, competitive and resilient banking sector. Measures address cross-border fragmentation, the transposition of Basel III standards, and the complexity of the EU banking rulebook. Plans include enabling cross-border use of capital and liquidity, proposing a new common deposit protection mechanism to replace the 2015 EDIS proposal, simplifying reporting requirements, and harmonising prudential and macroprudential rules. Legislative proposals are scheduled for the first quarter of 2027 to implement these reforms in line with the One Europe, One Market roadmap. The strategy is designed to improve how EU savings finance productive investment and reflects recommendations from the Letta and Draghi reports.
Commission approves €2 billion Hungarian capital injection into development bank Magyar Fejlesztési Bank
On 12 July 2026, the European Commission approved under EU State aid rules a €2 billion capital injection by Hungary into Magyar Fejlesztési Bank (MFB), funded by the Recovery and Resilience Facility. The funds will support MFB's activities targeting market failures in sectors including infrastructure, agriculture, and green and digital transition. The Commission determined the aid is necessary and proportionate under Article 107(3)(c) TFEU, noting Hungary's commitments to limit financial activities to relevant market failures and prevent crowding out private sector operators.
EU Legislation (Official Journal)
Commission Delegated Regulation (EU) 2026/788 amending Delegated Regulation (EU) 2016/522 on market abuse supervision
Commission Delegated Regulation (EU) 2026/788 of 8 April 2026, published 16 July 2026, updates Delegated Regulation (EU) 2016/522. Changes include extending trading permission during closed periods to cover financial instruments beyond shares, designating certain trading venues as having significant cross-border dimension for market abuse supervision, and clarifying indicators of market manipulation in light of algorithmic trading. A list of designated trading venues is added (Annex III), and provisions align with Regulation (EU) No 596/2014.
Commission Delegated Regulation (EU) 2026/789 supplementing Regulation (EU) No 596/2014 – inside information disclosure in protracted processes
Commission Delegated Regulation (EU) 2026/789 of 8 April 2026, effective 16 July 2026, supplements Regulation (EU) No 596/2014 (Market Abuse Regulation). It provides an extensive non-exhaustive list of final events or circumstances in protracted processes to clarify when disclosure of inside information is required and specifies situations where delayed disclosure would contrast with prior public announcements. National and board governance structures are addressed.
Guideline (EU) 2026/1694 of the European Central Bank amending Guideline (EU) 2018/876 on the Register of Institutions and Affiliates Data
Guideline (EU) 2026/1694, published 13 July 2026, amends Guideline (EU) 2018/876 concerning the Register of Institutions and Affiliates Data (RIAD), aligning its data attributes and reporting frequency with Regulation (EU) 2024/1988 and recent ECB statistics rules. Updates reflect changes in the population of investment funds and the need for enhanced official lists of financial institutions, and the definitions of monetary financial institutions are updated.
EU Council
ECOFIN Budget Council meeting for 27 July cancelled
The Economic and Financial Affairs Council (Budget) meeting scheduled for 27 July 2026 is cancelled.
EP Committee Work
FISC Subcommittee public hearing on the recast of the Directive on Administrative Cooperation in Taxation (DAC)
On 14 July 2026, the FISC Subcommittee held a hearing on the European Commission's proposal for a recast of the Directive on Administrative Cooperation in taxation (Council Directive 2011/16/EU, as amended). The hearing focused on measures to simplify and consolidate the existing framework, lower administrative burdens, and strengthen legal clarity, and included views from academic experts such as Prof. Dr. Nadine Riedel, Dr. Miroslav Palanský, and OECD official Philip Kerfs, along with Commission representative Dr. Benjamin Angel (DG TAXUD). Parliament considered the interaction with anti-tax avoidance policies and the effectiveness of the framework for combating tax evasion.
FISC Subcommittee public hearing on the Omnibus Proposal on Taxation
On 14 July 2026, the FISC Subcommittee hosted a public hearing on the European Commission's Direct Tax Omnibus proposal, published 24 June 2026, aimed at reducing administrative burdens and legal complexity by amending five directives: the Parent-Subsidiary Directive, Interest & Royalty Directive, Tax Merger Directive, Anti-Tax Avoidance Directive, and Dispute Resolution Mechanism Directive. The hearing included input from business and SME representatives as well as from research fellows. Topics included the removal of participation thresholds for withholding tax exemptions, new R&D allowances, and streamlined dispute resolution.
ECON Committee: Economic dialogue with Irish Council Presidency
On 15 July 2026, during the Committee on Economic and Monetary Affairs (ECON) meeting, members held an economic dialogue with Tánaiste and Minister of Finance Simon Harris, representing the ECOFIN Council Presidency. The priorities discussed included advancing the savings and investments union, progress on digital euro, simplification measures, and ongoing work on financial packages such as securitisation and pensions.
What We're Reading This Week
- Germany's Delivery Hero backs €13 billion takeover by Uber: Delivery Hero’s support paves the way for Uber’s €13 billion acquisition, reshaping the European food delivery market.
- Opinie | Europe’s economy is a mess. Its stock markets are a steal: Despite economic troubles, undervalued European stocks present attractive opportunities for investors seeking potential gains.
