CEE Perspective Weekly Digest- Issue 16

EU ministers advance negotiations on the next long-term budget

EU ministers held a policy debate on the 2028–2034 Multiannual Financial Framework at the General Affairs Council on 22 September. Discussions under the Irish Presidency focused on the expenditure and revenue sides of the next EU long-term budget, with Member States remaining divided over its overall size, funding priorities and potential new sources of revenue. 

Several Member States called for greater budgetary restraint, while others emphasised the importance of maintaining funding for cohesion and other established EU priorities. The Presidency intends to present a revised negotiating framework in the coming weeks, with the objective of reaching an agreement by the end of 2026. 

What this means for CEE markets: The next EU budget will be particularly relevant for Central and Eastern Europe, where EU funding supports infrastructure, innovation and regional development. Negotiations over the allocation of resources between cohesion policy and newer competitiveness, investment and security priorities will help shape financing opportunities across the region. 

EBA identifies priorities for MiCA review, including stablecoins and crypto-asset lending

The European Banking Authority (EBA) published its recommendations for the review of the Markets in Crypto-assets Regulation (MiCA) on 24 September, identifying several areas where the framework could be clarified or strengthened. 

The EBA highlighted difficulties in classifying crypto-assets under MiCA, which can create uncertainty and additional costs for firms launching new products. It recommended clarifying the regulation's scope and definitions, reviewing requirements for stablecoin issuers and addressing risks associated with arrangements involving multiple issuers across jurisdictions. 

The Authority also called for consideration of a regulatory framework for crypto-asset lending, including activities involving decentralised finance (DeFi), and improvements to reporting requirements for crypto-asset issuers and service providers. 

What this means for CEE markets: Clearer regulatory definitions and more consistent supervisory requirements could facilitate cross-border expansion for crypto-asset businesses operating across CEE. However, potential changes to stablecoin reserves, lending and reporting could also introduce new compliance requirements for issuers and service providers. 

Commission and EIB launch Institutional Investors Pact to boost European technology investment

The European Commission and EIB Group launched the European Institutional Investors Pact on 22 September to mobilise more long-term capital for European technology companies and scale-ups. 

Thirteen institutional investors have expressed their intention to participate in the voluntary initiative, which aims to channel investment into European venture capital and growth equity. The Pact will support investment opportunities linked to the planned €15 billion European Tech Champions Initiative 2.0 and the €5 billion Scaleup Europe Fund, targeting strategic technologies including AI, quantum computing, semiconductors, robotics and space. 

What this means for CEE markets: The Pact could create additional financing opportunities for CEE technology companies seeking to expand internationally. Greater participation by pension funds, insurers and other institutional investors in European venture capital could also help connect the region's innovation ecosystem with larger pools of long-term capital.

Czech and Slovak businesses to benefit from €300 million EIB financing agreement

The EIB announced a €300 million financing agreement with SG Equipment Finance Czech Republic on 24 September to support SMEs and mid-sized companies, primarily in Czechia and Slovakia. Under the agreement, the EIB will provide €150 million, matched by SG Equipment Finance, to help businesses invest in modern equipment, technology and transport. At least 20% of the financing will be allocated to climate and environmental investments, including energy-efficient machinery, renewable-energy systems and zero-emission transport. 

The financing will offer favourable conditions, including lower interest rates, longer maturities and more flexible collateral requirements. Approximately 88% of the financing is expected to reach EU cohesion regions in Czechia and Slovakia, where income per capita remains below the EU average. 

The agreement provides an example of how European financing can support business modernisation and competitiveness in CEE. By working through established financial intermediaries, the EIB can help smaller companies access investment financing that might otherwise be difficult to obtain on conventional terms. 

Serbia secures €22 million for digital and green investment

The EIB and Erste Bank Serbia signed a €22 million financing agreement on 21 September to support Serbian SMEs and mid-sized companies investing in digitalisation, climate-related projects and sustainable agriculture. The package combines a €20 million EIB loan with a €2 million EU grant. It is the first agreement signed in Serbia under the EIB's Western Balkans development programme launched in 2025. 

The initiative is intended to improve access to financing for Serbian businesses and support their transition towards more sustainable and technologically advanced operations. It also illustrates the role of blended financing in helping Western Balkan companies invest in productivity and competitiveness while strengthening their integration with European markets.

Hungary holds rates at 5.5% and announces lower inflation target

The Magyar Nemzeti Bank maintained its base rate at 5.5% on 22 September, leaving its overnight deposit and collateralised lending rates unchanged at 4.5% and 6.5%, respectively.

The Monetary Council also announced that Hungary's medium-term inflation target will be reduced to 2.5% from 1 January 2028, while retaining a symmetric tolerance band of one percentage point. The decision is intended to support Hungary's economic and price-level convergence towards the euro area.

The decision introduces a new medium-term benchmark for monetary policy while maintaining current financing conditions. The lower inflation target could influence longer-term inflation expectations and investment planning, although its implications will depend on the evolution of domestic inflation and broader economic conditions. 

EU approves nearly €3 billion in additional financing for Ukraine

The Council approved nearly €3 billion in additional financial assistance for Ukraine on 24 September under the eighth regular disbursement of the Ukraine Facility. Nearly €800 million will be provided through the Ukraine Support Loan. The decision follows Ukraine's completion of ten additional reform steps under the Ukraine Plan, bringing the total to 84 of the 95 steps required so far. The Council also welcomed a voluntary Norwegian contribution of approximately €92 million in additional financial assistance. 

The financing will help sustain Ukraine's public administration, economic stability and recovery efforts. For the wider CEE region, continued European financial support is relevant to regional economic resilience, reconstruction and the development of future investment opportunities. 

Latvia expands its investment-services market

Latvijas Banka announced on 17 September that it had granted an investment firm licence to IBC INVEST, authorising the company to provide services including portfolio management, order execution and the placement of financial instruments. This is the third investment firm licensed by the central bank in 2026, bringing the total number of authorised investment firms in Latvia to 13. 

The development reflects continued activity in Latvia's investment-services sector. A broader range of authorised financial intermediaries could support access to investment services, business financing and the development of the Baltic capital markets. 

North Macedonia begins developing a national green taxonomy

The National Bank of North Macedonia, together with the European Investment Bank and relevant national institutions, announced the development of a national green taxonomy on 23 September. Supported by the EIB's Greening Financial Systems Programme, the initiative will establish a standardised framework for identifying environmentally sustainable economic activities, tailored to North Macedonia's economic structure and priorities. 

The taxonomy aims to improve investment planning, facilitate capital mobilisation for sustainable projects and strengthen alignment with EU standards. It will also help banks integrate environmental considerations into lending and risk management, while providing greater transparency for businesses and investors. The initiative represents a further step in developing sustainable finance in the Western Balkans and attracting investment for industrial decarbonisation and climate adaptation.

• 28 September - Foreign Affairs Council (Defence): EU defence ministers will discuss military support for Ukraine, hybrid threats and European defence cooperation at the Foreign Affairs Council.

• 28–29 September – Informal meeting of EU energy ministers: The informal meeting will focus on energy affordability, innovation, market disruption and European energy security and cooperation.

• 28–29 September – Agriculture and Fisheries Council: Ministers will discuss the post-2027 Common Agricultural Policy, current agricultural market challenges and EU funding for fisheries and maritime policy for 2028–2034 at the Agriculture and Fisheries Council.

• 28 September  - ECON Committee: The European Parliament’s ECON Committee will examine EU banking competitiveness, hold a hearing with the European Supervisory Authorities and conduct a Monetary Dialogue with ECB President Christine Lagarde.

• 1–2 October - Justice and Home Affairs Council: EU ministers will meet at the Justice and Home Affairs Council to discuss issues related to internal security, migration and judicial cooperation.

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-eur

• Eurosystem launches Pontes for tokenised securities settlement: On 21 September, the ECB launched Pontes, enabling wholesale transactions in tokenised assets to settle in central bank money. The ECB also announced preparations to invest part of its own funds in tokenised securities, initially focusing on euro-denominated public-sector securities. The initiative marks a further step towards more integrated European financial-market infrastructure.

• EU ministers discuss semiconductor investment and merger-control reform: At the Competitiveness Council on 24 September, ministers discussed the proposed Chips Act 2.0 and the revision of EU merger-control guidelines, focusing on industrial investment, innovation, strategic dependencies and the ability of European companies to scale. The discussions are particularly relevant for CEE economies integrated into European manufacturing and technology supply chains.

• ESMA makes AI and tokenisation a supervisory priority from 2027: On 23 September, ESMA announced a new Union Strategic Supervisory Priority focusing initially on the use of artificial intelligence and tokenisation by supervised financial institutions. The initiative will strengthen cooperation between national supervisors and run alongside ESMA's existing priority on cyber and operational resilience.

• EU financial supervisors flag cybersecurity, external dependencies and private credit risks: The EBA, EIOPA and ESMA published their Autumn 2026 risk update on 23 September, warning of risks arising from dependence on non-EU technology providers, AI-enabled cyber threats and the rapid expansion of private credit. The authorities called for closer monitoring of financial interconnectedness, stronger cybersecurity and improved preparedness for potential market disruptions.

• Euronext expands cross-border securities settlement: Euronext Securities announced the launch of its European CSD Offering on 24 September, following its introduction on 21 September. The new model allows equities and euro-denominated exchange-traded products traded in Amsterdam, Brussels and Paris to settle within a single European CSD network alongside Athens, Copenhagen, Milan, Oslo and Porto.

• EU advisory body calls for stronger safeguards in regulatory simplification: Following a debate with Commissioner Valdis Dombrovskis on 23 September, the European Economic and Social Committee adopted an opinion on Better Regulation. While supporting simpler EU rules, it called for more comprehensive assessments of cumulative regulatory costs, adequate public consultation periods and stronger scrutiny of delegated and implementing acts.

• EU Member States call for more flexible state-aid rules: Latvia and Bulgaria presented an initiative at the 24 September Competitiveness Councilcalling for a review of the EU's de minimis state-aid framework. Their proposals include higher aid ceilings, greater flexibility and regular reviews to ensure that the rules remain responsive to business investment needs, particularly those of SMEs.