CEE Perspective Weekly Digest- Issue 15

Von der Leyen puts competitiveness, security and investment at the centre of the EU agenda

In her 2026 State of the Union address, Commission President Ursula von der Leyen placed competitiveness, security and greater European independence at the centre of the EU’s agenda. She called for faster implementation of the Draghi and Letta agendas, including deeper Single Market and capital-market integration, lower administrative burdens and measures to address high energy costs. The speech also emphasised investment in defence, energy infrastructure, critical raw materials, AI and strategic connectivity, alongside continued support for Ukraine. 

The agenda points towards a stronger focus on mobilising both public and private investment in areas considered strategic for Europe’s economic and security resilience. This includes defence capabilities, electricity grids and generation, industrial capacity and transport links, including stronger connections between Europe, the Black Sea, the South Caucasus and Central Asia. 

What this means for CEE markets: Central and Eastern Europe could be particularly exposed to this investment shift given the region’s strategic location and significant needs in defence, energy and infrastructure. Greater EU investment and deeper capital-market integration could support financing opportunities across these sectors, while initiatives such as the Middle Corridor could strengthen the role of countries including Romania and Bulgaria as gateways between the EU and its eastern neighbourhood. The extent of the impact will, however, depend on countries’ ability to mobilise private capital and translate EU priorities into investable projects. 

Commission proposes Fair Labour Mobility Package to make cross-border work simpler and more digital 

The European Commission adopted its Fair Labour Mobility Package on 15 September, aimed at making it easier for people to work across the EU while improving enforcement of their rights. The package contains five legislative proposals: a European Social Security Pass (ESSPASS); a Skills Portability Act; a strengthened mandate for the European Labour Authority (ELA); amendments to the Professional Qualifications Directive; and common EU rules for recognising qualifications obtained by third-country nationals. This follows the recently concluded revision of the EU social security coordination rules and the e-declaration framework for posted workers. 

A major focus is digitalisation and portability. ESSPASS would allow workers to request, store and present documents such as the European Health Insurance Card and portable document A1 digitally through the EU Digital Identity Wallet, while authorities could verify them electronically. The skills proposals would similarly introduce standardised digital qualifications and accelerate recognition procedures for regulated professions, while common rules would make recognition of qualifications obtained outside the EU more predictable. The ELA would meanwhile receive stronger tools for cross-border enforcement, including cooperation on inspections and an expanded role concerning third-country nationals and illegal employment. The Commission estimates that the package could generate around €5 billion in benefits by 2040, including €1 billion in simplification gains. 

What this means for CEE markets: The package could be particularly relevant for Central and Eastern Europe, where cross-border labour mobility and persistent skills shortages are important features of many economies. Faster recognition of qualifications and simpler verification of social-security status could reduce administrative costs for businesses recruiting across borders and make it easier for workers to move to where skills are needed. At the same time, stronger ELA enforcement and greater scrutiny of cross-border employment could increase compliance expectations for companies using posted or mobile workers. Over time, easier skills portability could improve labour-market matching across the Single Market, although for CEE economies it may also reinforce existing challenges around outward labour mobility and shortages in some professions. 

EU raises €11 billion as common borrowing continues to expand

The European Commission raised €11 billion in EU-Bonds in its eighth syndicated transaction of 2026, issuing a €6 billion three-year bond and a €5 billion 30-year bond. Investor demand was strong, with order books exceeding €72 billion and €80 billion respectively, corresponding to oversubscription of around 12 and 16 times. The transaction forms part of the Commission’s €80 billion funding target for the second half of 2026 and brings total outstanding EU debt to around €849 billion. 

The issuance also illustrates the EU’s increasingly established role as a large-scale capital-market borrower. Funds raised through EU-Bonds finance programmes including NextGenerationEU, financial assistance to Ukraine and the SAFE defence instrument. The Commission also highlighted the growing liquidity of the EU-Bond curve, which is increasingly being used as a reference for pricing new issuance rather than relying exclusively on national sovereign benchmarks.

EU-Bond transactions executed in the second half of 2026, by maturity (€ billion)
Source: European Commission, EU as a Borrower, September 2026. 

What this means for CEE markets: Continued EU-level borrowing matters for CEE both as a source of financing and for regional capital markets. Several CEE economies are significant beneficiaries of EU investment programmes, while increased financing for defence and security could be particularly relevant for Member States on the EU’s eastern flank. At the same time, a deeper and more liquid EU-Bond market expands the pool of highly rated euro-denominated assets available to banks, pension funds and other institutional investors, potentially supporting the broader development and integration of European capital markets.

EBRD launches new push to integrate CEE capital markets

The EBRD has launched a regional project aimed at reducing fragmentation and strengthening the interconnectedness of capital markets across Bulgaria, Croatia, Hungary, Poland, Romania, Slovakia and Slovenia. Published on 17 September, the initiative will examine differences in how EU financial rules are applied and enforced, as well as supervisory practices and operational barriers that restrict cross-border investment. The EBRD highlights the scale of the financing gap: average equity-market capitalisation across the seven countries is below 15% of GDP, compared with 68% across the EU, ranging from only 1.5% in Slovakia to 30% in Croatia. 

The project will also examine how regulatory and market infrastructure can be better connected across the region, building on existing cooperation between stock exchanges and central securities depositories. The EBRD argues that fragmented markets constrain liquidity, institutional investment and access to non-bank financing, particularly for SMEs and startups. Importantly, it explicitly links the project to the EU’s Savings and Investments Union and Market Integration and Supervision Package, making this a useful regional example of how the EU capital-markets agenda could translate into practical integration in CEE.

Equity market capitalisation as a share of GDP. The seven-country CEE average covers Bulgaria, Croatia, Hungary, Poland, Romania, Slovakia and Slovenia. *EBRD reports the regional average as “below 15%”; 15% is shown as the upper bound.
Source: European Bank for Reconstruction and Development, September 2026. 

Czech central bank holds rates at 3.75% after June tightening

The Czech National Bank kept its main policy rate unchanged at 3.75% on 17 September, with all seven members of the Bank Board supporting the decision. The discount and Lombard rates were also maintained at 2.75% and 4.75%, respectively. The CNB said inflation has remained close to its 2% target since early 2024, but expects it to temporarily increase around the turn of the year, while core inflation remains elevated. 

The central bank considers the June rate increase to have provided sufficient monetary tightening for now, with higher longer-term interest rates also tightening financial conditions and expected to moderate growth in new lending. However, the CNB pointed to stronger inflationary risks from commodity markets and said its next meeting could involve a choice between keeping rates unchanged or raising them, maintaining a relatively cautious monetary-policy stance. 

EIB backs €310 million Polish technology and research investment

The EIB signed the first PLN 150 million financing agreement on 14 September under a broader PLN 600 million financing package for Wrocław University of Science and Technology. The financing will cover up to half of a programme centred on the new Tech Innovation Park LEM, which will develop research and innovation infrastructure covering areas including microelectronics, digital and quantum technologies, energy, materials and life sciences. 

The financing is backed by InvestEU and represents the sixth Polish operation under the EIB Group’s TechEU initiative, which is intended to mobilise €250 billion for European technology and innovation. The project is notable from an investment perspective because it links EU financing directly to Poland’s research and commercialisation capacity, including facilities intended to strengthen cooperation between universities and industry in strategic technology sectors. 

EBRD backs Moldova’s strategic road links with €344 million financing

The European Bank for Reconstruction and Development (EBRD) is providing a sovereign loan of up to €344 million to Moldova to rehabilitate, widen and construct around 134 km of the R7 and M3 roads. The R7 is a key northern corridor supporting connections towards Romania and traffic between Ukraine and Moldova, while the M3 provides Moldova’s principal road connection between Chișinău and the Giurgiulești International Free Port on the Danube. The financing is intended to improve road safety, reduce journey times and strengthen Moldova’s links with Romania, Ukraine and EU markets. 

The investment forms part of a wider package of European support. According to the EBRD’s project documentation, the €344 million loan will be provided in two tranches and complemented by up to €11.4 million from the EU’s Neighbourhood Investment Platform, €7.7 million through the Connecting Europe Facility and €34.2 million from Moldova’s EU Growth Plan resources. The R7 and M3 form part of the extended Trans-European Transport Network (TEN-T) and the project is also aligned with the EU–Ukraine Solidarity Lanes, giving the investment a wider role in regional trade and connectivity. 

For Moldova and the wider CEE region, the project illustrates how EU and EBRD financing is increasingly combining infrastructure investment with economic integration and geopolitical resilience. Better links between Moldova, Romania and Ukraine should facilitate cross-border trade and improve Moldova’s access to EU markets, while supporting the country’s gradual integration into European transport networks. The EBRD has now invested more than €3.1 billion in Moldova, including substantial additional support since Russia’s full-scale invasion of Ukraine. 

€8 million venture capital fund to launch in Romania’s Central Region

Romania’s ADR Centru announced that the first investment fund supported by the 2021–2027 Central Region Programme will launch on 30 September in Brașov, targeting innovative companies at the pre-seed and seed stages. The fund will receive at least €7.06 million in public funding, complemented by a contribution of at least 10% from the fund manager and independent private investors, and aims to invest in more than 40 companies, with investments starting at €50,000. 

The fund will be managed by a consortium comprising Aster Capital, Iceberg+ and Venture Booster, with Aster Capital Partners coordinating the management structure. The initiative is intended to address the early-stage financing gap in Romania’s Central Region and attract additional private venture capital, while supporting the development and scaling of local innovative companies.

• 21–25 September - Council intensifies work on financial-services files: The Council’s Working Party on Financial Services and the Banking Union is scheduled to meet on 21, 22, 24 and 25 September, with the 24 September meeting specifically identified in the Council calendar as relating to the Market Integration and Supervision Package (MISP). The concentrated schedule comes as the Irish Presidency works towards progress on major outstanding financial-services files and deeper integration of EU capital markets.

• 22 September - EU ministers debate the next long-term budget: The General Affairs Council will hold a policy debate on the 2028–2034 Multiannual Financial Framework, alongside preparations for the October European Council. The discussion will be relevant for the future structure and priorities of EU-level financing as negotiations advance on the next budget, including the balance between competitiveness, investment and nationally and regionally managed funding.

• 22 September - Hungarian central bank monetary-policy decision: The Magyar Nemzeti Bank’s Monetary Council will hold its September rate-setting meeting, alongside consideration of the final version of its latest Inflation Report. The decision will provide an updated assessment of Hungary’s inflation outlook and monetary conditions and will be closely watched by regional markets for signals on the future path of interest rates.

• 24 September - Competitiveness Council focuses on chips, investment and the EU business environment: Internal market and industry ministers will meet for policy debates on the proposed Chips Act 2.0 and the revision of EU merger-control guidelines. Ministers will also receive updates on the Industrial Accelerator Act, the proposed 28th regime and the European Competitiveness Fund, making the meeting particularly relevant for the EU’s emerging competitiveness and investment agenda.

CEE Perspective will turn to the digital euro on 29 September for the next CEE Perspective Academy webinar, as negotiations over the project’s legislative framework move through trilogue.

The discussion will bring together public-sector and industry perspectives to examine the choices still on the table, including holding limits, privacy and acceptance, distribution, costs and the interaction between a future digital euro and existing payment solutions.

For CEE, these questions are particularly relevant because the region combines euro-area and non-euro-area markets, highly developed domestic payment solutions in some countries and very different banking and payments structures across the region. The debate is therefore not only about the design of a new form of central-bank money, but also about how the eventual framework would work across different national financial ecosystems.

Register here: https://ceeperspective.eu/events/webinar-on-digital-euro

• BRICS leaders back deeper economic cooperation and more resilient supply chains: BRICS leaders adopted the New Delhi Declaration on 12 September, reaffirming support for reform of global governance and stronger cooperation on trade, investment, finance and technology. The declaration calls for more resilient global value chains, continued work on cross-border payment mechanisms and greater use of local currencies, while supporting a stronger role for the New Development Bank and further cooperation on taxation, climate finance and industrial development. Leaders also criticised unilateral protectionist measures and reiterated concerns over trade-related environmental measures they consider discriminatory or inconsistent with WTO rules.

• EPC launches tool to navigate European instant-payment schemes: The European Payments Council (EPC) has launched an Instant Credit Transfer Scheme Selector to help payment service providers and users determine whether the SEPA Instant Credit Transfer (SCT Inst) or One-Leg Out Instant Credit Transfer (OCT Inst) scheme applies to a transaction. The tool uses factors including the currencies involved and the location of the sending and receiving institutions: SCT Inst covers euro instant transfers where both PSPs are within SEPA, while OCT Inst supports international transfers where one side of the transaction is outside SEPA and can also accommodate currency conversion.

• Parliament backs new ESMA and EBA leadership and calls for a stronger global role for the euro: The European Parliament voted on 15 September to approve the appointments of Carlo Comporti as ESMA Chair and Thomas Gstädtner as EBA Executive Director, following the respective appointment procedures in ECON. In the same session, the Parliament adopted its report on the global role of the euro, led by Rasmus Andresen (Greens/EFA). The report calls for reducing Europe’s dependence on foreign financial infrastructure and strengthening the euro’s international use, including through deeper European capital markets, payment infrastructure and the digital euro.

• ECB opens digital euro pilot to online and mobile merchants: The Eurosystem has launched a call for e-commerce and mobile-commerce merchants operating in the euro area to participate in the digital euro pilot, with applications open until 27 October. Selected merchants will test beta digital euro payments in remote commerce environments, helping assess payment journeys, operational processes and integration with existing checkout systems. The 12-month pilot is expected to begin in the second half of 2027 and will also involve 36 selected payment service providers and Eurosystem central banks, as technical preparations continue alongside the legislative process.

• WTO explores stablecoins’ potential role in international trade: A new WTO Secretariat report examines whether stablecoins could reduce frictions in cross-border trade by enabling faster and potentially cheaper payments and settlement. While their use in real-economy transactions remains relatively limited, the WTO sees potential benefits particularly for SMEs and firms with limited access to efficient international financial services, while stressing that stablecoins cannot replace the credit, guarantees and insurance provided by traditional trade finance. The report also identifies regulatory fragmentation and interoperability as key obstacles and highlights particular risks for developing economies, including currency substitution and implications for monetary sovereignty.

• EIB finds EU firms adapting supply chains to geopolitical risk: The latest joint EIB and European Commission DG GROW analysis finds that geopolitical tensions have become the leading source of supply-chain disruption for EU firms, with tariffs and regulatory requirements now weighing more heavily than logistics problems or input shortages. Nearly two-thirds of firms report being prepared for geopolitical risks, increasingly bydiversifying suppliers and markets rather than building inventories, while the Single Market continues to provide an important source of resilience. Firms remain broadly positive about export prospects, although those exposed to the US and China are more cautious, while rising costs and uncertainty remain important constraints on European competitiveness.

• EU looks to deepen economic and strategic ties with Canada: Europe is exploring closer cooperation with two of its major partners as geopolitical uncertainty increases the focus on economic resilience. Canadian Prime Minister Mark Carney addressed the European Parliament on 17 September on EU–Canada relations, with cooperation spanning economic security, trade and other strategic areas.