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Economic and Financial Affairs Council, 10 July 2026
Main results
Savings and investments union
The unanimous commitment given today by ministers reflects the strong political will to reach an agreement on the market and integration supervision package this year, and an acknowledgement that compromise from member states will be required to achieve this. I am confident we can come to a deal which represents a favourable outcome for all member states, and which will deliver deeper and more efficient capital markets for EU citizens and businesses.
Simon Harris, Tánaiste and Minister of Finance of Ireland
Ministers exchanged views on the market integration and supervision package – a key element of the savings and investments union. Agreement on this package is among the objectives of the “One Europe, One Market” roadmap.
On the basis of a Presidency steering note, ministers expressed a clear political commitment to reach a robust and ambitious Council negotiating position on the package by October and broadly agreed on the central policy issues to be resolved in order to achieve this goal.
Member states outlined their priorities for the upcoming negotiations. ECOFIN took note of the exchange, and the presidency will reflect on the matters raised while remaining seized of the timeline endorsed by ministers.
The Council mandated technical teams to intensifytheir work to help deliver on the ambition laid out by EU finance ministers.
The draft market integration and supervision legislation aims to deepen integration of EU capital markets by removing barriers to cross-border provision of investment activities and strengthening supervisory efficiency. This should help in turn to boost EU competitiveness through the mobilisation of private savings.
In particular, the draft rules encompass measures aimed at strengthening the role of the European securities and markets authority (ESMA), including by reinforcing its role in EU-level supervision for key market actors such as significant central counterparties, central securities depositories, trading venues and crypto-asset service providers, and reforming its governance.
The Irish presidency presented its work programme for the second half of the year in the field of economic and financial affairs.
In particular, the Irish presidency has announced that its work will be guided by three overarching priorities: competitiveness, values and security, in line with the EU Strategic Agenda 2024–2029.
In the economic and financial field, Ireland will place emphasis on strengthening the EU’s competitiveness, resilience and capacity to respond to an increasingly challenging geopolitical and economic environment.
Our presidency priorities reflect the major challenges the EU is facing, but also the opportunities that exist when Europe acts together as one. I have set out an ambitious programme of work for the rest of this year, in line with the targets of the One Europe One Market roadmap. Success will require all member states, and each institution, to come together in a spirit of hard work and compromise. For our part, Ireland is ready to put its shoulder to the wheel to drive forward the ongoing work for a secure and competitive EU, with European values at its core.
Simon Harris, Tánaiste and Minister of Finance of Ireland
Ministers decided to open an excessive deficit procedure (EDP) concerning Bulgaria. They also adopted a recommendation to Bulgaria outlining the net expenditure path and timeline that should be followed to put an end to its excessive deficit by 2029.
The EDP mechanism is designed to ensure that EU member states return to or maintain discipline in their governments’ budgets. Procedures are launched when a member state runs a government deficit exceeding a reference value of 3% of GDP, in accordance with Article 126(3) of the Treaty on the Functioning of the European Union.
The Council’s decision to open an EDP today is due to Bulgaria’s projected 2026 government deficit of 4.1% of GDP, which is expected to continue exceeding 3% of GDP in 2027. Bulgaria’s use of the national escape clause for defence spending under the stability and growth pact does not fully explain the excess above the 3% threshold.
In its recommendation, the Council stipulates that Bulgaria should therefore take effective action and present by 15 October 2026 the necessary measures to reduce its deficit. Bulgaria should also ensure that its nominal cumulative net expenditure growth rate does not exceed 4.2% in 2026, 7.7% in 2027 and 11.4% in 2028 and 15% in 2029.
TheCouncil adopted its recommendations on the economic, social, employment, structural and budgetary policies of each member state, part of the 2026 European semester process.
This year, the country-specific recommendations (CSRs) place particular emphasis on competitiveness, energy security, economic security, defence readiness, and social fairness.
In that vein, member states are encouraged to advance key priorities in support of competitiveness, ensure swift implementation of cohesion policy funds, and continue with reforms and investments supported under the recovery and resilience facility.
Other, more fiscal recommendations focus on member states’ paths towards achieving or maintaining healthy public finances, and prudent implementation of energy-related measures within the limits of the EU’s economic governance rules.
The Council also approved conclusions on the 2026 in-depth reviews under the macroeconomic imbalance procedure (MIP). This procedure aims to identify, prevent and address the emergence of potentially harmful macroeconomic imbalances that could adversely affect economic stability in a particular member state, the euro area, or the EU as a whole.
The Council today approved a new recovery and resilience plan (RRP) for Hungary.The new plan should allow for €10 billion to be disbursed to Hungary, made up of around €6.5 billion in grants and around €3.5 billion in loans.
Today’s approval follows Hungary’s recent submission of its new plan after delays in meeting the super milestones in Hungary’s previous plan meant that it was no longer achievable due to cost increases stemming from energy price volatility, unexpected shifts in geopolitical circumstances, unforeseen implementation challenges, delays resulting from time constraints or scheduling pressures, as well as other developments.
At the same time, ministers approved targeted amendments to the national plans of Cyprus, Finland, Germany, Latvia, Lithuania, Luxembourg, the Netherlands and Slovenia.
RRPs set out national reform and investment agendas in the context of the recovery and resilience facility (RRF) - the centrepiece of NextGenerationEU, the EU’s temporary instrument to facilitate and accelerate the green and digital transitions in member states, while increasing resilience, cohesion and sustainable growth.
To benefit from the facility, member states must submit recovery and resilience plans (RRPs) to the Commission, setting out the reforms and investments they intend to implement by the end of August 2026.
To date, around €429 billion has been disbursed from the RRF.
The Council set the maximum net expenditure path for the Netherlands – a key element of its medium-term fiscal-structural plan.
Under the EU’s economic governance framework, in force since the end of April 2024, member states are asked to submit national medium-term fiscal-structural plans covering four to five years, depending on their electoral cycle.
The plans are a cornerstone of the EU’s new economic governance framework, containing member states’ fiscal trajectory, together with envisaged reforms and investments.
The net expenditure paths as set by the Council constitute the most important operational indicator for fiscal surveillance at EU level. This budgetary constraint will frame the Netherlands’ national fiscal policies until 2030 and help determine whether it is maintaining healthy finances.
Ministers exchanged views on the state of play of the economic and financial impact of Russia’s aggression against Ukraine, based on an update from the Commission. This is a recurring item on the ECOFIN agenda.
