This Week in Finance — Brussels (#29, 2026)
ECB Guideline expands euro liquidity access; VAT fraud regulation amended for EPPO and OLAF; ESG rating rules advance; EUREP reforms; new reporting for third-country bank branches.
July 26, 2026 to August 01, 2026
ECB Guideline expands euro liquidity access; VAT fraud regulation amended for EPPO and OLAF; ESG rating rules advance; EUREP reforms; new reporting for third-country bank branches.
📋 In This Week's Newsletter
• 🇪🇺 European Commission
• ⚖️ EU Legislation
• 🤝 EU Council
European Commission
EU launches AI Gigafactories call to scale computing and investment
On 29 July 2026, the European Commission opened a call for tenders aiming to establish up to seven AI Gigafactories across Europe. Supported by up to €10 billion in EU and national funding, the initiative will unlock at least €20 billion in private investment and expand AI computing capacity. Eighteen Member States have joined a joint procurement agreement through the European High Performance Computing Joint Undertaking (EuroHPC JU). Successful proposals, to be evaluated by early 2027, may receive up to €100 million to €800 million per project, depending on scale and phase. The Gigafactories must comply with EU standards on data protection, safety, security, and ethics, with hardware sourced from both European and US providers, following recent Commission letters of intent.
Commission disburses €1.86 billion under NextGenerationEU to Belgium, Bulgaria, Denmark, and Slovenia
On 30 July 2026, the Commission released over €1.86 billion via the Recovery and Resilience Facility (RRF) to Belgium, Bulgaria, Denmark, and Slovenia, reflecting successful completion of required milestones. Belgium received €567 million for its fourth RRF request, Bulgaria €896 million, Denmark €359 million, marking completion of all RRF disbursements and becoming the first Member State to reach 100% allocation, and Slovenia €41 million. Each payment was preceded by national plan assessments and Council opinions, with all investments tied to reforms, digitalisation, clean transition, and resilience targets. Member States are required to submit all outstanding claims by September 2026, with payments completed by December 2026.
Commission greenlights Belgium's fifth payment request for €225 million under Recovery and Resilience Facility
On 26 July 2026, the Commission provided a positive assessment for Belgium's fifth RRF payment request, totaling €225 million, following completion of 7 milestones and 12 targets. The funds support clean transport, a reformed vehicle circulation tax in Wallonia, and energy efficiency renovations. The payment awaits the opinion of the Economic and Financial Committee and subsequent Commission decision. This installment raises Belgium's RRF payout to €3.86 billion, corresponding to 73% of its allocation. Final milestones are to be completed by 31 August 2026.
Commission publishes new guidance on State aid rules for social support and investments
On 26 July 2026, the Commission released guidance clarifying how EU State aid rules facilitate social support and investments under the Clean Industrial Deal. The guidance consolidates permissible State aid measures for public services, disadvantaged workers, energy efficiency, SMEs, and startups. It explains the distinction between State aid and general public support and will be updated alongside future changes such as the General Block Exemption Regulation. Executive Vice-President Teresa Ribera stated the measures ensure aid reaches those in need. The guidance is accessible via the Social Economy Gateway and relevant Commission portals.
EU Legislation (Official Journal)
ECB Guideline (EU) 2026/1861 establishes enhanced liquidity facility for non-euro area central banks
The European Central Bank adopted Guideline (EU) 2026/1861 (ECB/2026/17) on 15 July 2026, setting universal access to the Eurosystem liquidity facility (EUREP) for non-euro area central banks. The facility allocates euro liquidity against high-quality collateral and includes contractual safeguards. Maximum transaction maturity is one week, with a €50 billion borrowing cap per central bank. The Guideline applies subject to compliance with AML and restrictive measures legislation, and harmonised risk controls. Operational parameters may be revised by the ECB Governing Council.
Commission Implementing Regulation (EU) 2026/1757 details third-country branch reporting standards
Adopted on 20 July 2026 and effective from 28 March 2027, Commission Implementing Regulation (EU) 2026/1757 specifies technical standards for regulatory and financial reporting by third-country branches under Directive 2013/36/EU, as amended by Directive (EU) 2024/1619. Distinct templates and reporting frequencies are introduced for class 1 and class 2 branches, covering monthly, quarterly, semi-annual, and annual submissions. The European Banking Authority (EBA) will provide IT solutions and instructions.
Council Regulation (EU) 2026/1743 amends VAT fraud cooperation rules for EPPO and OLAF access
Council Regulation (EU) 2026/1743, adopted 10 July 2026, amends Regulation (EU) No 904/2010 to grant the European Public Prosecutor’s Office (EPPO) and the European Anti-Fraud Office (OLAF) centralised access to VAT information held by Member States. Criteria for sharing Eurofisc analysis reports and technical protocols for secure access are established. The regulation becomes effective 17 August 2027, with phased implementation for centralised access to certain databases until 2032.
ESG rating regulations advance: Commission Delegated Regulations (EU) 2026/871, 2026/872, 2026/904, and 2026/910 implement transparency and fee standards
Four new delegated regulations, published between 28 and 30 July 2026, supplement Regulation (EU) 2024/3005 on ESG rating providers. Regulation (EU) 2026/871 establishes transparency requirements for public disclosure of ESG product methodologies. Regulation (EU) 2026/872 specifies technical standards to minimize conflicts of interest and operational safeguards between rating and other activities. Regulation (EU) 2026/904 sets procedural rules on fines and penalties imposed by ESMA, including rights to be heard, access to files, and limitation periods. Regulation (EU) 2026/910 defines annual supervisory and authorisation fees for ESG rating providers, proportionate to turnover and complexity. These regulations take effect between July and August 2026; transparency and separation provisions apply from 2 July 2026.
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Council Implementing Regulation (EU) 2026/1838 updates restrictive measures against Iran
Regulation (EU) 2026/1838, adopted 24 July 2026, amends Annex IX to Regulation (EU) No 267/2012 by removing three designated persons and updating one entity. The restrictive measures against other listed entities remain in place, effective the day following publication.
Council Implementing Decision (EU) 2026/1879 formalises UK’s participation in assistance to Ukraine’s defence industry
Council Implementing Decision (EU) 2026/1879 of 24 July 2026 recognises the UK as eligible under Regulation (EU) 2026/467 for Ukraine's defence industrial support. The UK, following a Security and Defence Partnership and a Contribution Agreement signed on 13 July 2026, is included for specified defence products and activities, retroactive from that date.
EU Council
Economic and Financial Affairs Council (ECOFIN) Budget meeting cancelled
The scheduled ECOFIN budget meeting on 27 July 2026 was cancelled. No recent deliberations on budget matters have occurred.
