Finance Minister Makis Keravnos has expressed support for the Irish Presidency’s goal of securing a negotiating mandate at the October Council on the Market Integration and Supervision Package (MISP), stressing that the significant progress achieved during the Cyprus Presidency of the Council of the EU provides a strong basis for continuing the negotiations.
He was speaking at the first Economic and Financial Affairs Council (ECOFIN) of the European Union under the Irish Presidency concluded on Friday, in Brussels.
At the first ECOFIN under the Irish Presidency, Ireland’s Tánaiste and Minister for Finance, Simon Harris, told the press conference that “today’s meeting delivered a unanimous commitment from ministers in backing our presidency ambition to reach agreement on the package in October,” thanking colleagues for their support. Minister Harris noted that this goal “will only be achieved on the basis of a quality, balanced and proportionate compromise,” adding that ministers had agreed to mandate their technical teams to intensify their work in the coming months.
On his part, Keravnos expressed his country’s support for the Irish Presidency’s goal of securing a negotiating mandate at the October Council on the MISP package, stressing that the significant progress achieved during the Cyprus Presidency of the Council of the EU provides a strong basis for continuing the negotiations, while thanking colleagues for recognising that work.
The Finance Minister noted that Cyprus agrees with the paper tabled by the Irish Presidency, which places particular emphasis on asset management, financial innovation, the supervisory framework and the governance of the European Securities and Markets Authority (ESMA).
Presenting the Irish Presidency priorities, Harris said they would focus on competitiveness, security and values, recalling that the Presidency’s motto draws on an old Irish proverb meaning “there can be no strength without unity.”
On behalf of the European Commission, Commissioner for Economy, Productivity, Implementation and Simplification Valdis Dombrovskis thanked Minister Harris for presenting the Presidency’s priorities, welcoming “the important emphasis the work programme places on advancing key files, especially enhancing competitiveness, the digital euro and the Savings and Investments Union.”
Dombrovskis briefed the Council on the Commission’s updated economic outlook, noting that energy prices had fallen since the US-Iran peace agreement in mid-June, with oil prices approaching pre-conflict levels at the start of this month, while second-quarter inflation came in, on average, slightly below the Spring Forecast projections. However, he said, renewed hostilities in recent days had again driven a sharp increase in oil prices, and the Commission would continue to monitor developments and their impact on growth and inflation closely.
Under the Recovery and Resilience Facility, the Council approved the revised Recovery and Resilience Plans of Lithuania, Cyprus, Finland, Luxembourg, Germany, Latvia, Slovenia and the Netherlands, as well as Hungary’s new pound 10 billion plan.
Dombrovskis called it “an important milestone” that Denmark had become the first member state to complete 100% of the measures in its plan, noting that “just over 50 days” remained for member states to implement all milestones and targets. He also welcomed the approval of Hungary’s new plan, which he said includes “ambitious deliverables, including on rule of law matters.”
On Ukraine, Dombrovskis said disbursements under the Ukraine Support Loan had already exceeded pound 7 billion in total, including a first pound 3.2 billion disbursement under macro-financial assistance announced at the recent Recovery Conference in Gdansk, following Ukraine’s implementation of a series of policy reforms. He also called for the swift adoption of the 21st sanctions package against Russia to maintain pressure on its war economy.
Under the 2026 European Semester, the Council adopted country-specific recommendations, which Dombrovskis described as targeted at “strengthening Europe’s overall competitiveness,” along with the conclusions of the In-Depth Review under the Macroeconomic Imbalance Procedure.
On the fiscal side, the Council decided on the existence of an excessive deficit in Bulgaria, with Dombrovskis noting the Commission’s recommendation for “a corrective path to bring its deficit below 3% of GDP by 2029,” pledging Commission support for Sofia in reaching that goal. The Council also endorsed the net expenditure path of the Netherlands’ revised medium-term fiscal-structural plan, following a positive Commission assessment.
The Council also approved the EU’s terms of reference for participation in the G20 Finance Ministers and Central Bank Governors meeting on August 31-September 1, while the European Central Bank and the Commission presented, as is customary in July, the Convergence Reports on member states on the path to euro adoption.
Closing the press conference, Dombrovskis commented on the MISP discussion, calling it a “constructive policy debate” on a key component of the Savings and Investments Union, adding that the Commission “also welcomes the Irish Presidency’s ambition to reach a general approach this autumn.”
The previous day, July 9, at the Eurogroup meeting, Eurozone Finance Ministers exchanged views on fiscal policy for 2027 and adopted a joint statement ahead of member states’ preparation of their 2027 budgets.
In the statement, Ministers agreed with the European Commission’s assessment that a neutral to slightly expansionary fiscal stance for 2026 is appropriate, given the completion of the Recovery and Resilience Facility, while for 2027 the fiscal stance is expected to return to broadly neutral; ministers also reaffirmed their commitment to the effective implementation of the new fiscal governance framework to safeguard fiscal balance and the sustainability of public finances.
In an inclusive format with all EU member states, ministers also discussed the impact of emerging technologies on the financial sector, with particular focus on the implications of artificial intelligence for cybersecurity, and adopted a joint statement on advancing digital finance in the EU.