CEE Perspective Weekly Digest - Issue 1

What happened?

Ireland published its programme for the Presidency of the Council of the EU (July–December 2026), placing competitiveness, market integration and investment mobilisation at the centre of its agenda. In financial services, the Presidency has identified the Savings and Investments Union (SIU) as a key priority and intends to advance a number of major legislative files, including the Market Integration and Supervision Package (MISP), the digital euro, securitisation, the Sustainable Finance Disclosure Regulation (SFDR) review and the pensions package (PEPP and IORP). Ireland also plans to facilitate discussions on the European Commission's forthcoming report on the competitiveness of the EU banking sector and launch negotiations on future proposals concerning venture capital and investment exits.

Why it matters

The Irish Presidency will play a key role in determining the pace of negotiations on several major financial services files, including MISP, the digital euro, securitisation, SFDR and the pensions package. Progress on these initiatives could shape the next phase of the Savings and Investments Union and influence the future regulatory framework for capital markets, sustainable finance and long-term savings across the EU.

CEE Perspective

Several of the files prioritised by the Irish Presidency have particular relevance for Central and Eastern Europe. From MISP and the Savings and Investments Union to pensions and sustainable finance, the challenge will be to ensure that reforms support market development and investment across all Member States, while remaining proportionate to the realities of smaller and less developed financial markets.

Retail Investment Strategy clears Coreper II

What happened?

Member States endorsed the final compromise text of the Retail Investment Strategy (RIS) at Coreper II on 5 June, following the political agreement reached between the Council and the European Parliament in December 2025. The agreement includes new value-for-money requirements for investment products, revised inducement rules, updates to PRIIPs disclosures, enhanced suitability requirements and changes to the criteria for professional clients. The package will now proceed to the European Parliament for first-reading confirmation, with plenary consideration currently expected in November 2026.

Why it matters

The RIS represents one of the most significant reforms of the EU retail investment framework in recent years. It seeks to improve investor protection, increase transparency and strengthen confidence in financial markets, while preserving access to investment advice. Although the political negotiations have concluded, much of the practical impact of the package will depend on forthcoming Level 2 measures to be developed by ESMA and EIOPA, particularly regarding value-for-money assessments and supervisory benchmarks.

CEE perspective

For Central and Eastern Europe, the RIS could contribute to greater retail participation in capital markets and support the development of long-term savings and investment products. However, the implementation of the new requirements will need to remain proportionate, particularly in smaller and less mature financial markets where distribution models, market structures and supervisory capacities differ from those in larger Member States. The upcoming Level 2 phase will therefore be critical in determining whether the framework supports market development or creates additional compliance burdens for firms operating across the region.

EU agrees new simplification measures for growing businesses

What happened?

The Council and the European Parliament reached a provisional agreement on key elements of the Commission's "Omnibus IV" simplification package. The agreement introduces a new category of companies known as small mid-caps (SMCs), extending certain support measures previously available only to SMEs to businesses with up to 1,000 employees and annual turnover of up to €200 million. The package also advances the EU's "digital by default" agenda by digitalising a range of product compliance and reporting requirements and reducing reliance on paper-based procedures.

Why it matters

The initiative forms part of the EU's broader competitiveness and simplification agenda, responding to concerns that regulatory burdens can discourage companies from scaling up. By smoothing the transition from SME to larger business status and accelerating digitalisation, the package aims to reduce administrative costs, support innovation and strengthen Europe's industrial competitiveness.

CEE perspective

The agreement is particularly relevant for Central and Eastern Europe, where many fast-growing companies operate in manufacturing, technology, industrial and export-oriented sectors. The introduction of the SMC category could allow a greater number of CEE businesses to continue benefiting from simplified regulatory requirements as they expand, while the digitalisation measures may help reduce compliance costs and facilitate cross-border activity. The package therefore has the potential to support business scaling, investment and competitiveness across the region.

Council advances European Business Wallet initiative

What happened?

The Council adopted its negotiating position on the proposed European Business Wallet (EBW), a new digital tool designed to facilitate secure cross-border interactions between businesses and public authorities across the EU. Building on the eIDAS2 framework, the initiative would allow companies to verify identities, exchange trusted documents, sign contracts electronically, manage authorisations and communicate securely through a harmonised digital system. Negotiations with the European Parliament can now begin.

Why it matters

The proposal is a key element of the EU's broader digitalisation and Single Market agenda. By replacing many paper-based and in-person administrative procedures with secure digital processes, European Business Wallets could significantly reduce compliance costs, streamline cross-border operations and improve the efficiency of interactions between businesses and public administrations. The initiative also supports the EU's objective of creating a more integrated and competitive business environment.

CEE perspective

For Central and Eastern Europe, the proposal could be particularly beneficial for companies seeking to expand across borders within the EU Single Market. Many businesses in the region continue to face administrative and procedural barriers when operating in multiple Member States. A harmonised digital identity and document exchange framework could help reduce these frictions, lower compliance costs and support the internationalisation of SMEs and mid-sized companies. At the same time, effective interoperability with existing national systems will be essential to ensure that businesses across the region can fully benefit from the new framework.

Czech Republic proposes pension savings reform

The Czech Ministry of Finance has proposed a reform of the country's private pension savings system aimed at improving long-term retirement outcomes and increasing participation. The proposal would significantly reduce fees charged by pension funds, including the removal of performance fees, while encouraging greater investment in equities to boost long-term returns. The reform comes amid concerns over declining participation rates and relatively weak returns driven by conservative investment strategies.

If adopted, the changes could strengthen the role of funded pensions in supporting retirement adequacy while increasing the contribution of pension savings to capital market development. More broadly, the debate reflects a challenge facing many countries across Central and Eastern Europe: how to balance consumer protection, investment performance and long-term sustainability while mobilising greater household savings for productive investment.

Hungary secures access to additional EU funding

On 29 May 2026, following a meeting between European Commission President Ursula von der Leyen and Hungarian Prime Minister Péter Magyar, the Commission confirmed that Hungary will gain access to €16.4 billion in EU funding linked to progress on governance and rule-of-law reforms. According to the Commission, this includes €10 billion from the NextGenerationEU recovery instrument, €4.2 billion in cohesion funding and a further €2.2 billion to be released upon completion of additional reform commitments.

The decision marks an important step in Hungary's efforts to restore full access to EU funding programmes and is expected to support investment, infrastructure development and broader economic modernisation.

Upcoming Webinar: Is MISP the Map for Europe's Capital Markets?

On 19 June, CEE Perspective will host a webinar examining the EU's Market Integration and Supervision Package (MISP) and its implications for the future of European capital markets. The discussion will explore whether the package can deliver greater market integration and supervisory convergence while supporting the competitiveness of Europe's financial sector.

The webinar will bring together representatives from the European Commission, Euronext, the Federation of European Securities Exchanges (FESE) and the European Association of CCP Clearing Houses (EACH). Speakers include Anna Grochowska (European Commission), Gillian Leeson (Euronext), Claudio Vidal (FESE) and Elena Tonetto (EACH). The discussion will be moderated by Andreea Lungu (CEE Perspective).

You can find more information here and register here.

• The EBA has launched a consultation on a simplified approach for integrating small and non-complex institutions into the Pillar 3 Data Hub, under which prudential disclosures would be generated directly from supervisory reporting data, reducing reporting burdens while enhancing transparency and comparability across the banking sector.

• The European Parliament and Council reached a provisional agreement on targeted revisions to the EU's fiscal surveillance framework. The changes align older fiscal legislation with the economic governance reform adopted in 2024, streamline reporting requirements and reduce administrative burdens for Member States. The agreement does not alter the substance of the EU's fiscal rules but aims to improve consistency, transparency and implementation of the framework.

• The ECB has outlined the implementation roadmap for its Integrated Reporting Framework, with a public consultation planned for 2027, a pilot phase in 2030 and full reporting starting in 2031, aiming to streamline statistical reporting and reduce reporting burdens for euro area banks.

• IOSCO has published updated recommendations on secondary market disclosure, providing regulators with a principles-based framework to enhance the consistency, quality and timeliness of information available to investors after securities are admitted to trading.

• The deadline for transposing the EU Pay Transparency Directive expired on 7 June, with implementation remaining uneven across Member States as businesses and policymakers continue to grapple with the operational and legal complexities of the new equal pay requirements.