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Council of the European Union European Council
Follow its sittingsSimon Harris
I've listened to views, important views on the efficiency of this mechanism. Triggering it requires nine member states to make a request for an ex-ante discussion. I've now added a notification period of three working days to make this request and following this request that the executive board has up to three working days to address the matter. These changes have been done to improve the efficiency of the decision-making. I emphasize that this ex-ante provision does not transfer decision-making responsibility from the executive board to the board of supervisors.
I'm also proposing an amendment to the text on coordinated supervisory teams. The text now clarifies that the teams shall include the authorities of the jurisdictions in which the entities concerned are operating and possibly other relevant authorities based on an assessment by the executive board. I want to restate that the emergency procedure remains unchanged. On the issue of funding, the presidency paper had set out two options. Based on further engagement with you, I now propose that we merge these options.
I propose that ESMA activities that are not funded by directly supervised entities would be paid for in the following ways. NCAs will now contribute 40%, down from the current 60%. The EU budget contribution will rise to 60%, up from the 40%. We also will invite the Commission to review the contribution key, and if the Commission concludes that the existing methodology is not proportionate or stable or predictable, it may bring forward a legislative proposal. The Council and the Parliament would then negotiate and decide on the substance of any new key.
On trading venues, I propose to remove the square brackets. So the overall text on the package offers a delicate balance. It offers a viable compromise on the overall package. We've listened, we've adjusted, and we have found balance. And I would ask today that we rely and lean into our spirit of compromise and flexibility to now accept this approach.
So I will now hand to the Commissioner and then open the floor to delegations. So, Commissioner McGuinness.
Maria Luís Albuquerque
Thank you, Chair. Thank you, Simon. So, I would like to start by thanking the Irish presidency for its work in advancing this decisive file. At the same time, the Commission must be clear. Speed matters, but substance does even more.
And on substance, unfortunately, we deeply regret that the compromise now on the table falls significantly short of the level of ambition needed to deliver on the objectives of the market integration and supervision package. Without minimizing that parts of the compromise hold major value, there are nevertheless two central areas where the compromise departs significantly from the package's ambition: the reform of ESMA governance and the scope of supervised entities. The governance of ESMA is a key political point which goes directly to whether this package can meet its stated objective. It is therefore very regrettable that ministers are not asked to address this point specifically. Let me make three points.
First, on the scope of ESMA supervision. Let me recall that the current compromise text amends the criteria for identifying significant entities in a way that would exclude four trading venue groups, three CCPs, and two CSDs from ESMA supervision compared to the Commission proposal. In the Commission's view, these are clearly significant entities and they should remain in scope. This is in particular true for the trading venues where a level playing field is important. On CASPs, crypto-asset service providers, the Commission proposed transferring to ESMA the supervision of the entire sector.
The Council instead wishes to focus ESMA's role on significant entities for the EU's economy, so in the compromise text only some providers will be supervised by ESMA. The Commission deeply regrets the proposed compromise. It would significantly reduce the scope of the framework initially envisaged. It substantially weakens the package's single market logic and limits its capacity to support genuine market integration. This scaling back sends the wrong signal.
It disincentivizes EU-level scale for operators and reduces the practical benefits that market participants and investors should gain from a more integrated supervisory framework. Second, on funding, the Commission stands ready to work constructively with the co-legislators. However, the Commission cannot accept a significant increase in the EU budget contribution in light of the difficult discussions on the MFF. Third, and turning to the governance of ESMA, which from the Commission's point of view is central to the success and the benchmark against which the ambition is measured.
Here, the draft compromise text moves too far away from the package's ambition and core objectives. We need ESMA to become an effective supervisor, and this requires a strong, operational, and agile governance. The current compromise text would simply not allow for that. Let me illustrate this with two prominent examples. First, the compromise, even with the most recent amendments, has the possibility to request a prior discussion in the Board of Supervisors for decisions to be taken by the Executive Board.
This will lengthen decision-making processes and blur the respective roles of the two bodies. In practice, this will reduce the Executive Board's ability to act swiftly and decisively, with negative implications for the effectiveness and timeliness of its supervisory work. Second, the compromise makes coordinated supervisory teams the default model for direct supervision in the steady state. In our view, this would introduce unnecessary complexity and duplication, substantially increasing the cost of supervision and undermining its effectiveness. National authorities already have multiple channels through which to provide input, including consultations and the Board of Supervisors.
These default supervisory teams would mainly make ESMA supervision costly and cumbersome, running directly against a core objective of the package. If you add to this the additional procedural delays, supplementary consultation of national authorities, the expanded scope of the non-objection procedure, and the long transition phases, this will make ESMA costlier, less efficient, and therefore the EU capital markets less competitive. The Commission cannot support this approach, which cannot be reconciled with the mandate of the European Council and the One Europe, One Market roadmap. We need to ensure that single supervision represents a genuine step forward, making life simpler for all stakeholders. I continue to believe that we need to give markets a strong signal that we are genuinely not only willing to strengthen the single market for capital, but also acting in a way that is de facto able to support such intention based on honest engagement from everyone.
Diluting ESMA's role to accommodate narrow national considerations would not only weaken the effectiveness of supervision, but also risk creating a costly and inadequate framework at the very moment we need a credible European response. But this is not the end of the process. I sincerely hope that the European Parliament will be more ambitious and we will be able to deliver on our objectives on the Savings and Investments Union. Thank you.
Simon Harris
Thank you very much, Commissioner, and thank you for sharing that perspective and your view as well. I'm going to open this up to member states now. I'm going to first call on Roland.
Roland Lescure
Merci, merci Monsieur le Président, cher Simon. Je vais le faire en français. Il y a un joueur anglais de football, Gary Lineker, qui un jour a dit : le football, c'est un jeu qui se joue à onze, qui dure 90 minutes, et à la fin, c'est l'Allemagne qui gagne. Je ne sais pas si cette phrase est encore vraie aujourd'hui. Une chose dont je suis convaincu, c'est que l'Europe, c'est un jeu qui se joue à 27, qui dure parfois plus de 90 minutes, mais à la fin, c'est l'Europe qui gagne à une condition, c'est qu'on ait un très bon capitaine.
Évidemment, je remercie la Commission pour tout le travail qui a été fait en amont, mais je voudrais sincèrement te remercier, Simon, et ton équipe pour le travail que tu as fait ces derniers mois et singulièrement ces derniers jours, voire même ces dernières heures, pour faire atterrir ce texte. C'est un texte ambitieux, c'est un texte qui doit nous aider à faire face aux défis d'aujourd'hui qui sont immenses et pour lesquels l'Europe doit élever son niveau de jeu pour bien financer les révolutions auxquelles on fait face : la défense, la révolution technologique, la révolution climatique. Et pour ça, on a besoin d'un marché intégré. Mario Draghi nous l'avait dit, nous sommes en train de le faire et j'en suis extrêmement heureux. Ça montre que l'Europe sait se réformer, qu'elle sait surmonter la fragmentation, qu'elle sait agir vite lorsque notre compétitivité et nos souverainetés financières sont en jeu.
Nous avons abouti, grâce à vous, à un ensemble de mesures très positives. Nous créons un cadre de supervision européen plus intégré avec une supervision directe de l'ESMA des infrastructures de marché significatives, des prestataires de services sur crypto-actifs. Tout en rendant nos marchés plus intégrés, plus innovants, nous renforçons de manière substantielle le régime pilote DLT. Nous progressons sur l'intégration post-marché. Il s'agit d'une étape extrêmement importante vers une véritable union de l'épargne et de l'investissement.
L'ESMA se voit confier de nouvelles responsabilités, de nouveaux moyens. Elle doit pouvoir les exercer efficacement de manière indépendante et rapide, et le cadre de gouvernance ainsi amendé permet de fixer le bon équilibre entre efficacité de l'ESMA et le respect, évidemment, des prérogatives nationales. Et donc nous soutenons ce texte et une fois encore remercions la Commission pour le travail préparatoire et vous, cher Simon, pour tout ce que vous avez fait pour faire atterrir le sujet. Évidemment, le travail commence puisque les parlementaires européens vont devoir travailler là-dessus dans le cadre d'un trilogue, mais je suis extrêmement confiant qu'on aura on time, on budget, d'ici la fin de l'année, un accord final sur ce texte. Merci.
Lars
Translator was saying Lawrence, so... Ja, Simon, ich will mich dem anschließen, was Roland Lescure gerade gesagt hat, das ist ein großer und bedeutender Schritt. Und ich erinnere mich dran, als Roland, wir beide in Berlin zusammenkamen, wenige Tage nachdem President Trump seine Ambitionen auf Grönland deutlich gemacht hat und wir beide gesagt haben, das ist jetzt ein europäischer Moment und wir brauchen europäische Stärke und wir müssen vorankommen und wir uns sofort einig waren, jetzt beim Thema Kapitalmarktunion wesentliche Schritte voranzukommen, ist einer der wichtigsten Punkte. Und wir haben das, liebe Kolleginnen und Kollegen, hier als europäische Finanzminister unter der Führung der irischen Ratspräsidentschaft, lieber Simon, ich will dir ausdrücklich danken und deinem Team, jetzt in einem wichtigen Schritt vor uns und wir können das heute schaffen, das ist wirklich eine Errungenschaft, dass wir Europa hier mit Stärke machen. Ja, es ist ein Kompromiss, alle haben sich bewegt und ja, jeder findet Dinge, die er auszusetzen hat an diesem Kompromiss, aber ich finde, es gibt vieles, wo wir es geschafft haben, jetzt hier auch durch das Bewegen, das jede und jeder an den Tag gelegt hat, europäische Stärke zu entwickeln.
Und das ist in Zeiten, wo wir diese geopolitischen Verwerfungen haben, in Zeiten, wo wir die geopolitischen und geoökonomischen Herausforderungen sehen, doch das Wichtigste, dass wir Europa voranbringen und dafür ist die Kapitalmarktunion ein wirklicher Gamechanger und das MiSB und das Marktintegrations- und Aufsichtspaket ist ein zentraler Baustein, wenn es jetzt darum geht, voranzukommen. Roland hat es gerade angesprochen, wir schaffen Regeln für neue Technologien, die neue Geschäftsmodelle in Europa zulassen werden.
Wir gehen in die richtige Richtung, wenn es darum geht, Barrieren beim grenzüberschreitenden Vertrieb von Fonds zu beseitigen. Wir werden künftig die großen Zentralverwahrer und die zentralen Sicherheitsvermittler direkt von der ESMA beaufsichtigen lassen. Kryptofirmen werden künftig europäisch beaufsichtigt und alles das ist ein großer Schritt nach vorne. Ja, es ist auch ein klares Signal an das Europäische Parlament, dass bei einem durchaus komplexen Dossier jetzt weitere Verhandlungen geführt werden müssen, aber wir haben hier gezeigt, dass wir in kürzester Zeit vorankommen. Und lieber Simon, ich will dir und dem Team der irischen Präsidentschaft noch mal eine größte Anerkennung und einen größten Dank sagen für das, was hier heute auch als gemeinsame Position auf den Tisch gelegt wurde.
Und ich kann nur darum bitten, dass wir hier ein geschlossenes gemeinsames Signal auch des Aufbruchs in Europa setzen. Wir haben da hart dran gearbeitet und wir sind ein großes Stück vorangekommen. Vielen Dank.
Christine Lagarde
Thank you very much, Simon. Four quick points. I said what I had to say yesterday and you all heard me, I'm not going to repeat this. But I just share the concerns expressed by Commissioner Albuquerque in relation to scope and in relation to governance. I think at this point in time, provided that you finally agree on the consensus that seems to be forming, I think that you should help all of us to focus on the positive outcome.
Roland has already lined up a list of the positive outcomes, you know, for my part, I'm very happy to focus on that as well. Third point. I take comfort from the fact that operations eventually prevail over unnecessary bureaucratic hurdles that stand in the way of efficiency and effectiveness. This is what's happening at the ECB with the Governing Council and the Executive Board. It's what's happening at the SSM as well.
We, you know, pulled hair at the time of the implementation of those two structures and in the main, it's working. And institutions, if they want to be efficient, find ways around. So we should take comfort from that. I would just like to mention one thing because that will be helpful in the context of the debate with the Parliament. There's one element that could be detrimental for future integration where we are at risk of reintroducing fragmentation.
And I'm sorry that this is technical because it deals with the use of DLT. If the threshold has been set at 300 as opposed to 100 billions, we run the risk, if we leave it at that, of reopening multiple DLT structures that will not communicate, that will not be interoperational. So in that respect, I think it will be helpful, not at this point, but for the record, that Parliament focuses on the risk of reintroducing fragmentation through that little hole which is minimal at the moment, but where the growth of the sector is significant. Thank you.
Simon Harris
Thank you very much for that and thank you for that technical detail as well, which is important. Jan and then Elko.
Jan Jambon
Yes, colleagues, we welcome of course the progress achieved in the Council on the Commission's proposal on the market integration and supervision package and we would like to thank especially the presidency, Simon, for all the work that you have done. I think it's a great result. And we believe that the compromise proposed contains several essential elements to deliver on the ambition of strengthening the capital markets union.
On governance, we can support the compromise. We can also agree with the revised proposal regarding the financing and funding of ESMA. However, as you all know, we cannot support the carve-outs. As Commissioner Albuquerque noted yesterday, the package contains almost as many ins as it does outs. Et Roland, je vous ai bien entendu.
Je pense que sur les carve-outs, l'Allemagne a gagné, donc pour prendre votre comparaison. This is fundamentally a level playing field issue. If our objective is to build a genuine European capital market, the supervisory framework should strengthen convergence and integration and not create different supervisory regimes for comparable market operators. Carve-outs create fragmentation, distortion of competition and a lack of level playing field. And so, while recognizing the overall progress achieved and the importance of the package, Belgium's concerns regarding the carve-outs and the resulting lack of level playing field remain unresolved.
For that reason, we are not in a position to support the compromise in its current form and therefore we will abstain. Given the importance of this issue for the integrity of the single market and the level playing field, our Prime Minister will raise this issue again at next week's European Council. Thank you.
Elco
Thank you, Simon, and let me start by thanking you and your team for all the efforts you've put in this file. Europe needs economic growth, Europe needs investments and therefore Europe needs a capital market union. The Netherlands continuously expressed strong support for the Commission's proposal for the market integration and supervision package. The compromise text on the table is exactly that, a compromise. So instead of focusing on what we haven't achieved, we should focus on what we can achieve.
And in that light, I see the result as the right step in the right direction, with an improved amendment on the governance presented by the presidency. We can support the general approach that is now on the table. We also know the work is not done, but I'm proud of the work we've done so far. And on this topic, I think it's also good to remind ourselves that we have achieved more now in the last ten months than we have achieved in the last ten years. So imagine what we can still achieve in the years ahead.
And in that spirit, let's work on that. Thank you.
Simon Harris
Thank you, that's a good reminder. Thank you, Elco. Giancarlo, and then Carlos.
Giancarlo Scottà
Grazie. Grazie, Presidente. Ringrazio Simon e tutta la presidenza irlandese per il lavoro molto intenso svolto nelle ultime settimane e in particolare per lo sforzo compiuto per costruire un equilibrio complessivo sul pacchetto. Ritengo che raggiungere un compromesso tra ventisette paesi sia un grande successo politico. Chiaramente capisco le obiezioni della Commissione, ma in questo caso il detto che il meglio è nemico del bene si addica molto e noi dobbiamo guardare al bicchiere mezzo pieno.
Il pacchetto rafforza l'integrazione dei mercati europei e dota ESMA di responsabilità più ampie e di una governance più adatta a esercitarle. Per l'Italia tre elementi saranno particolarmente importanti. Primo, preservare l'ambizione del Consiglio sulla supervisione europea. La centralizzazione deve concentrarsi sulle attività e sulle infrastrutture per le quali una dimensione europea della vigilanza produce un reale valore aggiunto. Allo stesso tempo, l'architettura deve rimanere proporzionata e operativamente sostenibile e deve tener conto delle specificità nazionali.
Secondo, il modello di cooperazione costruito dal Consiglio. Siamo a favore di un assetto di governance funzionale che dia un peso adeguato all'Executive Board, che più forte non richiede di rinunciare però alle competenze presenti a livello nazionale. Al contrario, la qualità della vigilanza europea dipenderà anche dalla capacità di incorporare in modo strutturato la conoscenza dei mercati locali e l'esperienza delle autorità nazionali. E quindi consideriamo importante il ruolo dei Coordinated Supervisory Teams sotto la guida e la piena responsabilità decisionale di ESMA, così come il coinvolgimento delle autorità nazionali direttamente interessate nella preparazione delle decisioni. Terzo, dobbiamo assicurarci che ogni trasferimento di responsabilità di vigilanza avvenga con un assetto coerente di responsabilità operative, legali e finanziarie.
In tal senso sarà prioritario il rafforzamento del ruolo di ESMA sia accompagnato da adeguate risorse e da un quadro di finanziamento sostenibile che preveda un ruolo crescente per il bilancio europeo. Grazie.
Carlos
Muchas gracias, Simon. Voy a hablar en español. En primer lugar, por supuesto, agradecer a todos los equipos técnicos que han hecho un trabajo excelente liderados por la presidencia irlandesa para ser capaces de traer en menos de diez meses a votación un expediente enormemente complejo. Así que enhorabuena. Yo creo que este es sin duda uno de los primeros elementos por los que debemos estar contentos hoy.
Lo decía Roland, lo decían muchos de los compañeros, es un proyecto importante para nuestro trabajo en materia de la Unión de Mercados de Capitales o la Unión de Ahorro e Inversión. Y hoy damos un paso en la buena dirección y yo creo que en ese sentido tenemos todos de nuevo también que estar satisfechos independientemente de los esfuerzos que queden todavía para llegar al punto que todos queremos. España está lista para votar a favor de la propuesta de compromiso puesta sobre la mesa por la presidencia irlandesa. Y como decía, desde el principio todos hubiéramos tenido una visión propia, a nosotros nos hubiera gustado más ambición en algunos aspectos, pero entendemos la necesidad del compromiso, del acuerdo y entendemos también que es un paso importante y un paso en la buena dirección. Muchas gracias.
Andre
Thank you, Simon. I would like to congratulate the presidency for closing negotiations on this difficult package, which is very important for our European interest and our economies. Important issues have been coordinated during these last hours and we welcome reversing the shares of the EU budget and the share of the NCA contributions. I would like to thank to the Commission and to the European Central Bank and to my colleagues to find compromise and having fruitful conversation. Thank you very much.
Karsten
Thank you, Chair, and thank you to the Irish presidency for the enormous work you've done on this very important and very difficult file. When we set out on this file, our ambition was to deliver effective and integrated capital markets to Europe, to deliver capital markets that underpin a true savings and investment union, benefiting Europe's competitiveness and fostering much-needed investment and growth.
Now, when we look at the compromise before us, we're frankly not sure that we're delivering on that. We recognize that it's difficult. But we're unsure whether we deliver on ensuring a level playing field. We're unsure whether we deliver on enabling market participants in Europe to grow and become more competitive. Generally, we share the points made by the Commission, both on governance and on scope.
So we would have hoped for a package that delivered well-documented benefits for market participants. However, in the spirit of compromise, Denmark can support the current compromise as a basis for negotiations with the Parliament. Thank you.
Marissa
Thank you. We'd like to thank the presidency for all its works and efforts on this very important file for savings and investment union. During this process, we have been constructive and worked with all member states to try to reach a compromise. Much progress has been made, even if, as we said many times, the original proposal of the Commission had an ambition that unfortunately has not been fully taken advantage of. At the same time, considering the existing conditions, we consider that the compromise proposed today by the presidency is the first step and is an acceptable way forward in our opinion.
Speaker 27
Therefore, we are ready to work on its implementation at technical level. We thank the Irish presidency for its hard work to find a fair landing zone. We are ready to support this compromise.
Gilles
Thank you again, Simon, for steering the discussion yesterday and also today, and for the commitment, hard work, and energy that you and your team have devoted to this complex file. And as I said yesterday, the MiFIR package is a politically sensitive file for Luxembourg. But we have demonstrated also our willingness to compromise. I believe everyone made concessions, including ourselves. The new compromise text proposed by the presidency strikes a balance on important topics such as asset management, crypto-assets, and also ESMA's governance, notably by warranting efficient decision-making with the involvement of ESMA's Board of Supervisors.
We would hope that the procedure for emergency situations can be further elaborated in the upcoming discussions with the Parliament, and I can give my support to this text. Thank you.
Makis Keravnos
Thank you, Simon. We really thank the presidency for its tireless efforts and for putting forward this new proposal. While we would have preferred to avoid further changes to ESMA's governance model and still consider the previous presidency compromise to offer a more balanced framework, we recognize the efforts required to bridge different positions at this stage.
In the spirit of compromise and with a view to facilitate an overall agreement, we can accept the proposed changes, even if they do not fully reflect our preferred approach. Regarding the new compromise on ESMA's funding, we can agree. We support the proposal. Thank you.
Markus
Thanks, Simon. From the very beginning, Austria demonstrated its willingness to compromise. At the same time, I of course recognize that not all of our key concerns have been reflected in the compromise text, especially concerning the significance criteria for CASPs and the rules on the equity consolidated tape. Nevertheless, in the spirit of compromise and with the aim of finalizing the package, Austria firmly supports the compromise. Thanks.
Galab Donev
Благодаря, Саймън. Ще говоря на български. Благодаря и на председателството за усилията за постигане на компромис. България остава ангажирана с постигането на общ подход и ще подходи положително към това. По отношение на управленската рамка можем да подкрепим предложения компромис, като все пак считаме, че би могло да се постигне по-подходящ баланс между ролите на Съвета на надзорниците и новия Изпълнителен съвет.
По отношение на преките надзорни правомощия на ЕSMA България може да бъде конструктивна и виждаме логика в насочването на европейския надзор към значими и трансгранични пазарни структури. Благодарим на председателството за проявеното разбиране и вземане предвид на притесненията, изразени от голям брой държави, включително и България. Готови сме да подкрепим предложения нов компромис по разпределението на вноските за финансиране на ЕSMA. Благодаря ви.
Simon Harris
My translator's still going. Thank you so much, Galab. Riikka and then Kylicke.
Riikka
Thanks. There is a need to move forward with the MiFIR as a core part of the Savings and Investment Union. We know that the presidency compromise does not fulfill all the points everyone has considered important during the negotiations. However, we believe it is the best achievable compromise amongst member states. And I would like to thank the presidency and Simon for your hard work and also for staying calm, consistent, and fair during the last weeks.
Thank you.
Kylicke
Yes, thank you very much, Chair. And let me join others in also thanking the presidency for all the hard work done on this important file. We can support the compromise on the table. Thank you.
Stipe Župan
Thank you. Croatia is committed to reaching a general approach at today's ECOFIN meeting and supports the presidency's efforts to secure an agreement. We consider that this is a balanced compromise that will help reduce market fragmentation, improve supervisory cooperation, and support the further integration of European capital markets. Thank you.
Johanna Lybeck Lilja
Now, finally.
Let me join others by starting to congratulate you, Simon, and your team for all your extremely hard work and also, like Carlos, our technical experts. They have indeed been working hard on this. We have all compromised in this. And like all compromises, it is a careful balance. For us, the same issues have been important the whole way of these negotiations.
So it has been on scope, and I think it's clear that we will not find the perfect solution. This has, of course, led to a lot of discussions. Then we should aim for, as a general principle, that the same type of trading venues or similar trading venues should face the same type of supervision. Or if you're a significant trading venue with cross-border activities, you should be under ESMA supervision. Secondly, on cooperation arrangements, as our national supervisory authorities will keep some responsibilities, it has been important for us to ensure that they are sufficiently involved on a permanent basis.
Thirdly, on ESMA governance, also here we need to have a balance, as we will give up part of our national supervision. So it's equally important to find an executive board that is efficient and effective, but also that we have a board of supervisors that can focus on strategic decisions and act as a safeguard. A lot of work has gone into achieving this balance. Fourthly, and something that nobody else has mentioned, that is on self-regulation. We have a very efficient system in Sweden that is very important to us and very important to our market.
So I am happy to see that that is also reflected in the final text. A particular thank you for that. This is a very large and complex package, so we have done an overall assessment. And we find that overall, it's not perfect. It's not perfect for any of us, but overall we think that the balance of these important issues for us are in the right place.
So it is acceptable to Sweden and we can support the general approach. Thank you.
Baiba Braže
Thank you, Mr. President. I would like to thank Irish presidency for the work and efforts invested in this issue. We all welcome the objective of true single market and this package should serve the purpose for competitive capital markets. To achieve this goal, we have to ensure even level playing field. So eventually all significant market players should fall within the scope of ESMA supervision.
We see the merits to preserve the presidency's compromise as it was balancing the carve-outs with relatively inclusive ESMA governance. With the opening of discussion on ESMA governance, we strongly advocate to stronger role for board of supervisors in decision making. However, in the spirit of compromise, we can be open to proposed changes on ad hoc discussion pull-up mechanisms and coordinated supervisory teams. We can support the proposed compromise on ESMA financing and the deal in general. Thank you so much.
Thank you so much, Baiba. Johannes and then Jöran, please.
Johannes
Thank you very much and warm thanks to the Irish presidency for all its efforts. We had always been on the side of more ambition, but of course we can join all others in accepting the compromise that you have put forward. And just for the record, Germany does not always win, at least in football. We played them twice in recent weeks, we beat them in Germany and drew at home. Thank you.
Well, that's the most important thing. Jöran and then Balázs, please.
Jöran
Thanks a lot, Simon. I would like to join the colleagues in congratulating you on your work. Striking a compromise in already in October is quite a feat. You know, it's very efficient work and we appreciate this. We also appreciate the work of the Cypriot presidency which paved the way before.
So thanks a lot for everybody involved. As Poland was quite positive
You know, it's very efficient work and we appreciate this. We also appreciate the work of the Cypriot presidency which paved the way before. So thanks a lot for everybody involved. As Poland was quite positive on this file, the integration of the capital markets is one of our goals for growth, for better financing of our companies, we all know this. But also for finding European solutions for where the economies of scale can be found.
So we think that the compromise tabled by the presidency is a right one. There, our assessment of this compromise is positive. Of course everybody had to make the concessions. For us, as it was already mentioned by Austria, that for instance the consolidated tape issue had to be streamlined. But what I would like to mention is the supervision of the crypto-assets providers as we think that there is a large scope for the European level supervision because of the trans-border nature of this business.
And if, well, there is a kind of, there is a compromise here as well from our side. But in general, speed was of the essence and we really appreciate the effective work. Poland can support this compromise. Thank you very much.
Speaker 46
Thank you chair for the hard work done and I especially thank the presidency for listening to our concerns on NCA contribution. I also join Austria and Poland when it comes to the consolidated tape rules. I think it's premature to reopen it, but all in all we can accept the new compromise proposal. Thank you.
Speaker 47
Thank you very much. First of all, congratulations for the work that you've done. I was listening to one of us earlier saying that this package means a big leap forward. In ten months we achieved more than what has been done in ten years, but I think also we have to be careful on how we set our level of ambition. I've listened to Maria Luis earlier and what a decreased level of ambition could pass as a message for Europe because this package is a central part of the savings and investments union and it's a central part for our ambitions for growth.
Alexandru Nazare
Of course we appreciate the fact that we arrived at a compromise yesterday and today and we will support this general approach on the entire package. The ambition of this package should be judged by the financing opportunities that it creates across the union. For Romania, success means that firms in capital markets, in smaller capital markets can reach a wider pool of investors while savers gain access to a more competitive investment choice.
Speaker 44
Integration should help the markets deepen alongside the major financial centers. This is why we attach equal importance to removing market barriers and improving supervision at the same time. On governance, you, I think we need to stick with the idea of a more efficient and agile stance because we couldn't ask ESMA to run with the hands tied and I think we made some steps forward here and this is to be appreciated. On the contribution key, you know our position, we supported the more proportional contribution key and I think it is very important to connect the contribution key with the size of the financial market of different states because this varies very much in between member states. All in all, I think we've made a progress and the compromise can be supported.
Clyde Caruana
Thank you Simon. Malta remains committed to reaching an agreement on this important package. What you have just presented is the result of months of intensive negotiations among different positions around the table. While Malta would have preferred further progress on certain elements, we recognize the delicate overall balance achieved and the wider political importance of moving this package forward. Throughout our discussions, the principles guiding our positions have remained unchanged.
We have sought greater European integration underpinned by proportionality and stronger European supervision, while preserving meaningful national involvement. Ambition must also be matched by appropriate accountability, sufficient operational capacity, and sustainable financing. These elements are important to Malta's support and should remain central to the overall balance of the package. In particular, on ESMA governance, greater responsibilities must be matched by adequate checks and balances. The Board of Supervisors must retain meaningful oversight and national authorities must remain appropriately involved in the supervisory framework.
Any further weakening of these safeguards would be very difficult for us to accept. On financing, Malta supports the proposed 40-60 split between NCAs and the EU budget for non-fee funded activities. ESMA's expanded responsibilities must not place disproportionate pressure on national authorities or weaken domestic supervisory capacity. The new framework requires financing arrangements that are predictable, equitable, and responsive to the different realities of all member states. Lastly, on crypto-asset service providers, Malta has demonstrated considerable flexibility from its initial position by accepting direct ESMA supervision of genuinely significant CASPs.
While we would have welcomed further refinement of certain elements to address some of the concerns, we recognize the overall compromise reflects flexibility across all sides. To conclude Simon, we thank you for bringing these negotiations to such an advanced stage. We trust that the delicate balance achieved will be preserved in its entirety as we move forward to the next phase and hence can agree to the general approach in the spirit of compromise. Thank you.
Yuri
Thank you Mr. President. I also would like to thank the presidency for the work done in this file and it was really incredible effort. We strongly believe that your compromise proposal is a major step towards stronger, more resilient and more integrated European capital market. In our view, the presented compromise text represents a delicate balance, especially when it comes to the governance of ESMA, as well as a balanced division of competence between the Board of Supervisors and the Executive Board. From our broader perspective, we would like to highlight a couple of areas which are extremely important for us.
Smaller CASPs operating primarily on the local market will remain under the supervision of national authorities. Member states would be allowed to permit funds to appoint an eligible depositary in another member states. Enhancement of the consolidated tape from the perspective of small capital markets. Supervision over the large cross-border groups will be less complex while still promoting consistent supervision. The DLT pilot regime would be much more attractive and last but not least, balanced proposal on ESMA funding.
And those are all elements why we also can support this proposal. Thank you very much.
Janos
Thank you, dear Minister. It's a big day for all of us. I would like to congratulate the presidency and all member states on reaching a political agreement on the MiFIR package. This agreement reflects the considerable efforts and constructive engagement of all member states through the negotiations. Today's agreement is an important milestone in our effort to build more integrated, competitive and efficient European capital markets.
Alina
It also provides a strong mandate for the Council in the forthcoming negotiations with the European Parliament. As the incoming presidency, Lithuania stands ready to continue working with the same determination and intensity to take the negotiations with the European Parliament forward and to firmly represent the position agreed by the Council through the negotiations. We fully support the Irish presidency in continuing this important work and stand ready to ensure a smooth transition and continuity of the negotiations as Lithuania prepares to take over the presidency. Thank you so much.
Joaquim Miranda Sarmento
Thank you, dear Simon. Let me thank you and your colleagues for your hard work on this file. I appreciate that the compromise reflects some of the points we have been advocating for. On the other hand, there are other points that did not move sufficiently to address our concerns. I would prefer a stronger role for national competent authorities in ESMA governance and a more balanced approach concerning small member states.
I will not block the agreement and I can support the compromise. Thank you.
Simon Harris
Thank you so much. So I see no further indications to come in. So allow me just to say a few words.
Firstly to acknowledge that this is a compromise. This is how Europe works. If everybody got everything they wanted, well then we didn't compromise. So I want to acknowledge that fact that all member states have dug deep and have worked intensively to try and get us to this point today. The second point, I heard many people make the point, and I think it is a fair point, that we have made perhaps more progress in deepening capital markets union, capital markets in 10 months than we have in 10 years.
And I want to acknowledge the work of the commissioner, Mary Louise. It's 10 months I think since the commission brought forward proposals for member states to consider. And that is no mean feat that we have engaged and gotten to this point today. I remember in July I set a political deadline that we would reach an agreement by October. It is now October and we are about to reach a political agreement.
To not meet that would not be consequence-free. Our leaders at the European Council set a deadline in relation to this package of the end of the year. And by us making a political agreement today, we have fulfilled our part as a council in reaching that deadline. And it is of course, as the commissioner and others have alluded to, now for the rest of the process to move forward and to do its part as well. I want to sincerely thank the presidency team.
I want to thank my own officials, an extraordinary group of people who have worked incredibly hard to get us to this point. And I want to thank each and every one of your teams for the tireless hours that they have put in and for the constructive, pragmatic way people have engaged to get to this point. It is the role of the presidency to be an honest broker and to try and to bring forward a landing zone that can command the support of this council as well. And let us not forget that this is a major package that will fundamentally change ESMA. It will make it stronger.
It will make it better equipped to do the job that we want it to do. And it is a major step forward in terms of the deepening of our capital markets. I hope in time that the decision we take today can be seen as a positive milestone moment for the European Union and for our economy. So with that, I am noting Belgium's comments and our comments of Jan and they're noted and recorded. I conclude that the council has reached an agreement on this package and that the legal texts will now be finalized to reflect that agreement and will then be formally endorsed at a forthcoming council meeting.
Thank you. Thank you, Gormoghas. We now move to item four, which is any other business on financial services regulation. I remind colleagues we're still in public session. As we've just had a discussion on the market integration supervision package and reached that political agreement, I'll refrain from saying anything on this file.
We have continued intensive work on the securitization package. So far we've had three trilogues, the first one under the Cyprus presidency, Makis, and the following two under our remit. Another trilogue is scheduled at the end of this month and our ambition is to reach a political agreement as soon as possible. On the digital euro, we've already held four trilogues, the latest one was yesterday. And as announced earlier, our ambition is also to reach political agreement on this extremely important file by the end of the year.
We're also happy that on the sustainable finance disclosure regulation, the SFDR, the parliament is ready to negotiate.
The first trilogue has been scheduled for the 22nd of October, and we also hope to reach political agreement on this file by the end of our term. The Council has already reached its respective mandates back in June on the pensions package, which includes the reviews of the regulation on pan-European personal pension products and on the directive on institutions on occupational retirement pensions. Unfortunately, we're still waiting for the Parliament to agree on its mandate on these two files, but we're ready to start trilogues as soon as possible, which is critical if we are to reach political agreement by the end of the year. So that concludes my intervention on these matters, and I now give the floor to the Commission, please, to Mary-Louise.
Maria Luís Albuquerque
Thank you, Chair, Simon, and I thank you for this update. I will not go through the individual files again. You have already provided the overview. We all have a clear understanding of where we stand on the various legislative initiatives and of the challenges ahead. The stakes could not be higher.
The world is moving ahead and it will not be waiting for us to act. And together we should seize this moment, transforming it into an opportunity to build a dynamic, sustainable, and competitive financial sector. I'd like to use today's opportunity to convey two important messages. First, the Commission will continue to step up its efforts to strengthen the competitiveness of the EU financial sector. Competitiveness lies at the core of the Savings and Investments Union by fostering integration of capital and banking markets alike.
Yet, lasting competitiveness is not something we inherit or something we can take for granted. It is the result of strategic choices with a long-term horizon. Success is built through consistent efforts and the right decisions. And we should remember that competitiveness is not an end in itself. It is a means to an end, delivering the kind of society we want, creating opportunities and giving citizens the confidence that progress and wealth are being created and shared.
These objectives require political guidance, commitment, and continued support, but also a preference that is collective, not national. You are the ones making the decisions and bearing the consequences of those decisions, obviously, and I encourage you to take a more active role in shaping the strategic choices that will determine the future of the European financial sector. And this brings me to my second message. We hear your appeals to legislate less. But even if we legislate less, the measures already agreed by co-legislators need to be implemented in a timely, effective, and consistent manner.
If one wants to achieve the objectives of the SIU, I also plead that you look at our recommendations in that context as a roadmap for progress. Yesterday's discussion showcased several encouraging best practices which are a proof that progress is possible. Dear Simon, I'd like to conclude by emphasizing that the European Union has repeatedly demonstrated its ability to act decisively and deliver significant results. We must move beyond a reactive approach, often preserving national choices, to develop a shared strategic vision for the future of our financial markets with a stronger sense of collective ownership and political responsibility. The choices we make today will shape not only our financial sector, but also the EU's capacity to finance its priorities and retain its economic relevance in years to come.
Thank you.
Nadia CALVIÑO
Thank you so much, Mary-Louise. At this stage, I'd like to bring in Nadia, who I know is going to make an intervention.
Thank you, dear Simon, and congratulations on the agreement on MiSP. I'd like to update ministers on four areas where the European Investment Bank is complementing the legislative initiatives with a view to building this deeper capital markets, larger capital markets, the Savings and Investment Union.
First, on securitization, in parallel to the to the legislative package, we're working with the with a number of member states, led by Spain, on creating this securitization platform. And in particular, the EIB is providing its experience and knowledge as one of the largest players in with more than 6 billion euros last year in acquiring securitizations from European banks to standardize this instrument so that we can create a pan-European securitization market. Secondly, on the digital euro, just also to pay tribute to the European Central Bank and the launch of the Pontes initiative. In parallel to legal changes, we're already walking the talk and trying to make sure that Europe is ahead of the curve in terms of having this digital money, and we're proud at the EIB to cooperate with the ECB to make these systems work. Thirdly, I'd like to refer to the 28th regime, which is not in itself a legislative initiative of the ECOFIN Council, but it obviously plays a very important role in integrating Europe's markets.
I wanted to to share with ministers that some weeks ago we were in Lithuania and we had a meeting with Lithuanian startups and how passionate they were and how positive they were about the positive impact that the 28th regime could have in building a strong ecosystem for startups in Europe to grow and stay here. I want to to say this because the European Commission has expressed concerns on the on the lack of ambition of that negotiation. I know the Irish presidency is very strongly committed to have an ambitious negotiation and a and a good outcome before the end of the year. There are a number of difficult areas like the taxation of stock options, but it would really be a game changer for the market if the 27 member states could agree on an ambitious 28th regime. And and from the European Investment Bank, we're happy to help in whatever way we can in in bridging those gaps that still remain and having something that is a strong message to the market.
And then finally, I wanted to update you on the fundraising project process for the European Tech Champions Initiative and the Defense Equity Facility. You know that we are planning to send these two initiatives before the end of the year. And I'm very happy to report that already seven member states have confirmed their participation in the in the second European Tech Champions Initiative. You know Bulgaria, Germany, Greece, Luxembourg, Italy, the Netherlands, and Spain. We are awaiting a we we were happy to report that we got confirmation recently from Spain, a contribution of 200 million, Italy, a contribution of 200 million.
And that, I think, is is paving the way for others to join. Let me remind everybody of the importance of of contributing to this initiative. And I'm also happy to report how little by little we're also having strong commitment from the private sector. So we have contributions from commitment from Azimut Holding, Banco Santander, BBVA, Compagnia di San Paolo, Danske Bank, AltamarCAM, Green Arrow Capital, Unica, and most recently ABN AMRO. So this is every day we're getting additional confirmations which would allow us to have the first closing in the coming weeks.
I want to also mention that we launched the investment platform, which means that those companies that are committing and those countries that are committing can participate in this very important investor platform, having a one-stop shop to be able to invest in venture capital funds and in in the scale-ups that are financed by the European Investment Fund. And we're also moving ahead with the Defense Equity Facility. Already a number of member states have confirmed their participation.
So just by way of encouraging all of us so that we can really have a big announcement in the coming weeks and we can send also a strong message to the market, not only top-down with legislation, but also bottom-up with pan-European financial instruments that can channel savings into productive investments. Thank you.
Simon Harris
Thank you very much, Nadia, and yeah, just to reiterate, we remain very ambitious around the 28th regime and it's important as well. Would any colleagues like to intro— sorry, Christine, please, yes.
Christine Lagarde
Thank you, Zsombor. Couple of things. One, thank you so much for the effort that you put into closing the digital euro file before year-end. It's highly appreciated. Parliament is dragging its feet a bit now and again, but the efforts that you put into it are highly appreciated.
Point one. Point two, on September 21st, we launched what Nadia just referred to, which is Pontos. I know it sounds a bit strange and jargonic, but it's essentially rails on which tokenized assets can travel in a coordinated fashion and can be settled on those rails. So it's working. We launched it, and I'm pleased to report that Pierre, if he had been here, would have also indicated that they will soon issue, and they will issue in tokenized form on Pontos and will be delivering a European result in that respect.
Final point, I would like to really pay tribute to Maria-Luis, who is sparing no efforts in trying to convince us of the necessity of the simplification, effectiveness, competitiveness of our banking system. And in that respect, I would remind you that simplification can actually massively contribute to competitiveness, but it should not ever be at the expense of safety and the resilience of the system. So let's be cautious in the way we handle this matter, and I think that Maria-Luis has that very high on her agenda. Thank you.
Simon Harris
Thank you, Christine. Would any other colleagues like to intervene on this item? If not, the Council takes note of the information on the state of play of the financial services legislative files, and this now completes the public session. I'd now ask the Secretariat to end the broadcast.