Latvia's Ministry of Finance published a briefing ahead of the Eurogroup and Economic and Financial Affairs Council meetings in Brussels on 7–8 July, setting out the main files to be discussed and Latvia’s positions. The agenda focuses on euro area fiscal policy coordination, the legislative framework for the digital euro, and the final steps towards Bulgaria joining the euro area. Eurogroup ministers will discuss the euro area fiscal stance with a focus on preparations for 2026 national budgets, against an environment described in the European Fiscal Board’s assessment as highly unstable and volatile due to geopolitical shocks. On the digital euro, discussions cover the “single currency package” comprising three European Commission draft regulations on introducing a digital euro as a complement to cash, providing digital euro services outside the euro area, and reinforcing the legal tender status of euro banknotes and coins. Progress has been made on distribution arrangements, the compensation mechanism and privacy protections, and Latvia supports strengthening rules on the scope, impact and availability of cash as legal tender and advancing agreement in the Council as soon as possible. On euro area enlargement, Eurogroup will discuss the Commission proposal paving the way for Bulgaria’s accession, with ECOFIN expected to formally approve the necessary legal acts for Bulgaria to join from 1 January 2026. ECOFIN is also set to open discussions on proposals presented in June to improve the EU securitisation framework, which Latvia broadly supports, including measures to reduce transaction operating costs and adjust the prudential framework to better reflect risk. Other planned items include the economic impact of Russia’s war against Ukraine, updates on implementation of financial services regulation, Denmark’s Council Presidency work programme for the second half of 2025, amendments to several member states’ recovery plans, and Council recommendations on medium-term plans and activation of national escape clauses for 15 member states.
Ministry of Finance (Latvia) 2025-07-07
Latvia's Ministry of Finance previews Eurogroup and ECOFIN talks on the digital euro, fiscal stance and Bulgaria’s euro adoption
Latvia's Ministry of Finance outlined key topics for the Eurogroup and Economic and Financial Affairs Council meetings, including euro area fiscal policy coordination, the digital euro legislative framework, and Bulgaria's euro area accession. Discussions will address the euro area fiscal stance for 2026 budgets, digital euro regulations, and Bulgaria's accession legal acts. ECOFIN will also consider EU securitisation framework improvements and other economic impacts, including Russia's war in Ukraine.