Latvia's Ministry of Finance announced that Finance Minister Arvils Ašeradens and State Secretary Baiba Bāne will participate in Eurogroup and Economic and Financial Affairs Council (ECOFIN) meetings and the European Stability Mechanism (ESM) Board meeting in Brussels on 11–12 December, covering the euro area economic and fiscal outlook, application of the EU’s new economic governance framework, the digital euro package, customs reform, financial regulation simplification, and continued EU financial support for Ukraine. The Eurogroup agenda includes an International Monetary Fund (IMF) interim assessment that expects near-term growth but flags medium-term headwinds from population ageing and weak productivity, alongside external risks from trade conditions, geopolitics and high energy prices. Ministers will also discuss the European Commission’s assessment of euro area members’ 2026 draft budgetary plans and the aggregate fiscal stance, including deficit and debt levels, net expenditure growth rates and alignment with the new EU fiscal rules; a new Eurogroup President is due to be elected and is expected to be appointed as Chair of the ESM Board. The ESM Board is set to approve adjustments to the ESM founding treaty reflecting the end of the temporary correction period for Latvia’s ESM contribution key and Bulgaria’s planned accession to the ESM in January 2026; ECOFIN will consider proposals to strengthen the Savings and Investment Union focused on market infrastructure and more effective supervision, and is expected to approve Council conclusions on simplifying EU financial regulation to reduce administrative burden while maintaining financial stability and competitiveness. A central ECOFIN item is the Single Currency Package, covering the introduction of the digital euro, provision of digital euro services outside the euro area, and the legal tender status of euro banknotes and coins, with discussions on compromises around privacy, the remuneration mechanism, holding limits and the project’s development timeline; customs reform discussions include progress on a new Union Customs Code and an EU Customs Authority regulation and a political agreement to remove the customs duty relief threshold for low-value consignments with transitional arrangements, with Latvia supporting progress subject to a practicable regulatory and technically workable transition model. Ministers will also review the economic and financial impact of Russia’s war against Ukraine and consider options for further EU support, including via ERA loans and funding under the Ukraine Facility, as well as approaches that would draw on immobilised assets of the Central Bank of Russia within the framework of international law.

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