The Cyprus Presidency of the Council of the European Union has published a Progress Report on the Market Integration and Supervision Package (MISP), assessing technical discussions among member states on three legislative proposals tabled by the European Commission on 4 December 2025. The report, dated 24 June 2026 and prepared for the 26 June 2026 meeting of the Council, indicates broad political support for the package's objectives of simplifying cross-border activities and boosting EU competitiveness, but identifies significant outstanding technical divergences that must be resolved to meet the end-2026 deadline set by the European Council.
The MISP is a central pillar of the Savings and Investments Union Strategy launched in March 2025, and aims to further develop capital market integration and supervision, as called for in the Draghi and Letta reports. The European Council on 19 March 2026 called for co-legislators to conclude negotiations by end 2026, a target reiterated in the 'One Europe, One Market Roadmap' of 24 April 2026. The Presidency organised 19 meetings of the Council Working Party and three ECOFIN discussions (10 March, 5 May, and 12 June 2026) to advance the file. On 11 June 2026, three rapporteurs of the European Parliament's Economic and Monetary Affairs Committee published draft reports on the proposals.
According to the report, broad support emerged for focusing direct European Securities and Markets Authority (ESMA) supervision on the most systemic cross-border entities, and in principle for establishing an Executive Board within ESMA. However, ministers highlighted the need for further work on criteria for determining significance, governance balance, the role of national competent authorities (NCAs), and ESMA's budget and funding. Outstanding issues include the transfer of MiFID II provisions into MiFIR, the Pre- and Post-Trade Transparency Regime (PEMO), the Equity Consolidated Tape, CSD interconnectivity and mandatory T2S connectivity, division of competences between NCAs and ESMA for central securities depositories (CSDs) and central counterparties (CCPs), and simplification of designation procedures under the Settlement Finality Regulation.
The report underscores that while political will exists to advance the package, significant technical divergences remain, particularly on the scope of direct ESMA supervision, governance arrangements, and post-trading provisions. Further negotiation is required to meet the ambitious end-2026 deadline. The Council is expected to continue discussions in the coming months, with the European Parliament's draft reports providing a basis for trilogue negotiations once the Council agrees its position.