EU finance ministers on 5 May 2026 debated the market integration and supervision package, revealing a split between member states favouring rapid centralisation of supervision under ESMA and those prioritising proportionality and national checks. The Economic and Financial Affairs Council also reached a general approach on VAT anti-fraud measures after technical fixes.
The Cypriot Presidency framed VAT fraud as a major revenue loss and linked the capital-markets debate to the Savings and Investment Union. Commissioner Wopke Hoekstra presented the VAT file as a practical access measure, opposing mandatory Eurofisc consultation but accepting a non-binding version. Commissioner Maria Luís Albuquerque defended direct ESMA supervision for significant firms and all crypto-asset service providers, backed by an Executive Board. The ECB strongly supported the package.
Divergences on ESMA supervision
Key divergences emerged on the scope and governance of ESMA supervision. A group led by France, Croatia, Spain, Netherlands, Bulgaria, Poland, and Greece pushed for broad ESMA supervision covering all cross-border entities, while Slovakia, Italy, Czechia, Malta, Austria, Belgium, Finland, Baltic states, Slovenia, Hungary, Luxembourg, and Ireland preferred a narrower focus on truly cross-border firms. On crypto-assets, Croatia, Poland, and Bulgaria supported full ESMA supervision for all crypto-asset service providers, opposed by Slovakia, Portugal, Denmark, Latvia, Czechia, Malta, Austria, Estonia, Slovenia, and Lithuania who favoured size-based treatment.
Governance and competitiveness
On governance, France, Portugal, Croatia, Denmark, Romania, Poland, Spain, and Netherlands backed an independent Executive Board, while Slovakia, Italy, Luxembourg, Hungary, Czechia, Malta, Finland, Lithuania, Belgium, Sweden, Bulgaria, and Estonia wanted stronger national checks through the Board of Supervisors. France and Netherlands supported single supervision, but Croatia, Portugal, Ireland, Italy, Latvia, Malta, Austria, Romania, Finland, Belgium, Slovenia, Lithuania, Hungary, Bulgaria, Sweden, Estonia, Slovakia, and Denmark preferred joint structures. On competitiveness, France, Spain, Romania, Netherlands, Poland, and Greece linked centralisation to competitiveness, while Luxembourg, Hungary, Sweden, Belgium, Malta, Denmark, Ireland, Baltic states, Slovenia, Estonia, and Austria prioritised proportionality and cost control.
VAT and next steps
On VAT, unanimity was reached on a general approach after technical fixes. On financial services, the Presidency resisted reopening the RIS compromise, while France, Germany, Poland, and Czechia pushed back on FiDA and RIS. Next steps include technical work with the incoming Irish Presidency; FiDA remains under assessment.