Finance Minister Galab Donev Attended the Eurogroup and ECOFIN Meetings in Luxembourg

The Council of the European Union’s Economic and Financial Affairs Council (ECOFIN) has reached agreement on the Market Integration and Supervision Package, a key component of the EU’s Savings and Investments Union. Minister Donev thanked the Irish Presidency for its considerable efforts to reach a compromise, taking into account the concerns expressed by Bulgaria.

Despite initially diverging positions among member states on the methodology for allocating contributions to fund the European Securities and Markets Authority (ESMA), a compromise was reached with Bulgaria’s active participation, significantly reducing the financial burden on national authorities. The agreed ESMA governance framework strikes a balance between the powers of the Board of Supervisors and those of the new Executive Board.

ECOFIN participants exchanged views on the Commission’s report on the competitiveness of the banking sector. Minister Donev stressed that improving competitiveness required a comprehensive approach which, alongside harmonised supervisory rules and prudent risk management, should take account of all the factors shaping the sector’s development, including regulatory, technological, economic and market-related considerations. The European framework for bank resolution should encourage credit institutions to build the capacity and preparedness needed to support the implementation of crisis management measures.

It is necessary to ensure that resolution tools for banking groups, including entities in host countries, can be applied effectively. Bulgaria recognises the important role of liquidity in resolution within the broader framework for managing banking crises. Proposals aimed at improving liquidity arrangements should safeguard market confidence while also contributing to fiscal neutrality.

Ministers discussed the economic and financial impact of Russia’s aggression against Ukraine. The European Commission updated the Council on the state of Europe’s economic recovery, noting that the deadline for submitting requests for final payments was 30 September. Discussions on the European Semester focused on lessons learned, what had worked well during this year’s cycle and what could be improved. The Council also adopted two recommendations: one approving Czechia’s revised medium-term fiscal-structural plan, and the other activating the derogation clause for Greece.

The Presidency and the Commission briefed the Council on the main outcomes of the meeting of G20 finance ministers and central bank governors held on 31 August and 1 September. Ahead of the G20 and IMF annual meetings on 15 October 2026, the Council approved the EU’s terms of reference for the G20 and the Union’s statement to the International Monetary and Financial Committee. The Council also approved conclusions on climate finance ahead of the upcoming United Nations Climate Change Conference, which will take place in Antalya, Türkiye, from 9 to 20 November 2026.

At the Eurogroup meeting on 8 October, ministers discussed international meetings, recent economic developments, progress on the Savings and Investments Union, the efficiency of public finances and the impact of energy markets on the euro area.