Focus at ECOFIN: Impact of MISP and energy markets on the euro area economy
On October 8–9, Vice-Minister of Finance Januš Kizenevič will attend meetings of the European Union (EU) Economic and Financial Affairs Council (ECOFIN) and the Eurogroup (EG) in Luxembourg, where the aim will be to reach a common agreement on the Market Integration and Supervision Package (MISP) and discussions will be held on strengthening banking competitiveness and the impact of energy markets on the euro area economy.
At the ECOFIN meeting, the aim will be to reach a political agreement on the Market Integration and Supervision Package (MISP). Member States generally support the MISP’s objective of reducing capital market fragmentation, simplifying cross-border operations, and strengthening supervisory consistency at the EU level. Lithuania takes the position that the success of the MISP will depend on a balanced and proportionate approach; it advocates for European Securities and Markets Authority (ESMA) supervision to apply only to the largest, most systemically important market participants and infrastructures with a clear cross-border impact, based on objective criteria applied consistently across all Member States.
The ECOFIN meeting will also address the European Commission’s Communication on the competitiveness of the banking sector and the single banking market, which serves as the basis for preparing a comprehensive package of legislative proposals. The presentation of this package and the subsequent negotiations are scheduled to take place during Lithuania’s Presidency of the EU Council.
"We support a comprehensive approach to strengthening the competitiveness of the EU banking sector. In this context, we regard the simplification of regulation and greater proportionality as key priorities; however, during negotiations on this proposal, we will urge Member States to bear in mind that, while simplifying banking regulations, it is crucial to maintain high levels of financial stability and protection for depositors and consumers," Vice-Minister J. Kizenevič said ahead of the ECOFIN meeting.
The meeting will also address continued support for Ukraine, discuss Council implementing decisions regarding the RRF, adopt conclusions on climate finance, and review the 2026 Semester process and lessons learned.
During the meeting, it is planned to approve the Czech Republic’s updated medium-term fiscal-structural plan for 2027–2030, as well as requests from the Czech Republic and Greece to apply a national derogation regarding increased defense and energy security expenditure. Furthermore, preparations for the G20 meeting of finance ministers and central bank governors on 15 October, and for the IMF and World Bank Annual Meetings, will be discussed.
The Eurogroup meeting will address progress on the Savings and Investments Union (SIU) and the Capital Markets Union (CMU), discuss challenges and opportunities for enhancing the effectiveness and efficiency of public finances, and examine the impact of energy markets on the euro area economy.
According to the Vice-Minister, the ongoing geopolitical tension in the Middle East and its impact on energy prices demonstrate once again that energy independence is a matter of not only security but also economic resilience. "For Lithuania, as a small and open economy, the impact of external shocks is particularly pronounced; therefore, we must continue to reduce our vulnerability by investing in local renewable energy generation, electricity grids, and energy resilience. The less dependent we are on external energy sources, the better we can protect our economy and population from geopolitical shocks," J. Kizenevič emphasized.
Last updated: 08-10-2026
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