This Week in Finance — Brussels (#28, 2026)
Artificial Intelligence Act implementation changes; EU adopts new sanctions on Russia and Belarus; ECB amends TARGET-ECB conditions; Investment firm execution standards updated; Measures on digital identity wallets.
July 19, 2026 to July 25, 2026
Artificial Intelligence Act implementation changes; EU adopts new sanctions on Russia and Belarus; ECB amends TARGET-ECB conditions; Investment firm execution standards updated; Measures on digital identity wallets.
📋 In This Week's Newsletter
• 📅 This Week's Calendar in Brussels
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
• 📚 What We're Reading This Week
This Week's Calendar in Brussels
- CANCELLED - Economic and Financial Affairs Council (Budget): On July 27, the EU Council's CANCELLED - Economic and Financial Affairs Council (Budget) configuration is scheduled to hold an ministerial meeting in Brussels.
European Commission
Commission invites feedback on revised State aid rules for rescue and restructuring
The European Commission on 23 July 2026 opened a public consultation on the revised Guidelines on State aid for rescuing and restructuring non-financial undertakings in difficulty, with submissions due by 4 September 2026. The draft text proposes, among other changes, expanding eligibility to the steel sector and adjusting how 'undertakings in difficulty' are defined, particularly for innovative start-ups and hybrid instruments. The revision aims to reflect recent market and technological conditions and align with Article 107(3)(c) TFEU, preceding expiry of current rules on 31 December 2026. Following the consultation, Member States will hold further discussions before the guidelines are finalized.
Commission approves Sweden's €1.47 billion request under the Recovery and Resilience Facility
On 22 July 2026, the European Commission issued a positive assessment of Sweden's second payment request for €1.47 billion under the Recovery and Resilience Facility, part of NextGenerationEU. Sweden has met all 8 milestones and 8 targets required by the Council Implementing Decision, relating to green transition, labour, housing, and demographic initiatives. Reforms include the 'Climate Leap' initiative, housing support, and regulatory amendments for the electricity grid and environmental permits. The Economic and Financial Committee of the Council will provide an opinion within four weeks, after which the Commission may proceed with the payment. With this disbursement, Sweden will have received €3.11 billion, or 90.34% of the plan's allocated funds.
Commission welcomes the EU’s 21st sanction package against Russia
The Commission announced on 22 July 2026 the adoption of the 21st package of sanctions against Russia, with new measures on the energy, financial services, trade, and military-industrial sectors. Key provisions include suspending oil price cap adjustments until July 2027, expanding transaction bans on Russian and third-country banks, new restrictions targeting crypto-services, and extended asset freezes for 94 financial institutions and related individuals. The package clarifies prohibitions on Russian shadow fleet vessels and introduces new notification requirements for LNG tankers. The measures also extend sanctions to Belarus, adding sector-specific bans and further restricting Belarusian involvement in crypto-asset services.
Commission completes eligibility checks for two European Citizens’ Initiatives
On 21 July 2026, the European Commission decided on the eligibility of two European Citizens’ Initiatives. 'Stop Killing The Internet: No Digital ID & No Age Verification' was registered and can begin collecting signatures for measures on digital identity and age-assurance systems. The 'Save Europe Act' proposal, which called for a moratorium on new non-Western immigration channels, was found ineligible due to being contrary to Article 2 TEU and Article 21 of the Charter of Fundamental Rights. The Commission separately confirmed both initiatives met or failed legal preconditions under Regulation (EU) 2019/788.
EU Legislation (Official Journal)
Investment firms: new order execution policy standards under MiFID II
Commission Delegated Regulation (EU) 2026/825, published 23 July 2026, supplements Directive 2014/65/EU (MiFID II) by specifying technical standards and criteria for establishing and assessing the effectiveness of order execution policies for investment firms. The regulation lists detailed requirements on selection of execution venues, best execution monitoring, transparency for clients, and conflict-of-interest management. It repeals Delegated Regulations (EU) 2017/575 and 2017/576 and will apply from 12 February 2028.
CRR: New regulatory standard for completion guarantees in residential property
Commission Delegated Regulation (EU) 2026/849, dated 16 April 2026, supplements Regulation (EU) 575/2013 (CRR) by clarifying what qualifies as an equivalent legal mechanism ensuring completion of residential property under construction. The regulation specifies conditions for completion guarantees—provider eligibility, enforceability, creditworthiness requirements, and activation criteria—critical for risk weighting mortgage exposures under Article 124(3)(a)(iii) and enters into force 20 days after publication.
Croatia authorised to temporarily reduce excise rates on motor fuels
Council Implementing Decision (EU) 2026/1775 grants Croatia, from 1 August 2026 to 31 January 2027, a derogation from Article 7 of Directive 2003/96/EC to apply excise duty reductions on gas oil and unleaded petrol below EU minima. The reduction is capped at €0.225/litre for gas oil and €0.2195/litre for petrol, with the decision taken following recent energy price surges due to geopolitical events.
Artificial Intelligence Act: Digital Omnibus implementation amendment adopted
Regulation (EU) 2026/1744, published 24 July 2026, amends Regulation (EU) 2024/1689 (AI Act) and other sectoral regulations to simplify and clarify implementation procedures for AI harmonised rules. The amendments introduce new definitions for SMEs and SMCs, extend the scope of certain provisions, and postpone the application of Chapter III obligations for different categories of high-risk AI until December 2027 and August 2028. The regulation also provides for procedural clarifications, new conformity assessment processes, and codifies additional governance arrangements for the AI Office.
EU Council
Council to cancel Economic and Financial Affairs configuration (ECOFIN) Budget meeting on 27 July 2026
The Economic and Financial Affairs Council (Budget) meeting scheduled for 27 July 2026 is cancelled.
What We're Reading This Week
- Oil prices rise as fighting between US and Iran intensifies: Escalating tensions between the US and Iran drive up oil prices amid growing concerns over supply disruptions.
