EU ministers agree markets watchdog plan despite Commission objections
The compromise retains national checks and exemptions for some stock exchanges, drawing criticism from the Commission and smaller member states.
EU finance ministers agreed a Council position on the MISP financial markets package in Luxembourg on 9 October 2026, with most ministers supporting proposals for stronger EU supervision. The European Commission opposed the compromise, arguing that it would leave the European Securities and Markets Authority without sufficient powers.
The package would put major financial firms under the authority’s supervision. Finance Commissioner Maria Luís Albuquerque said the proposed arrangements would prevent it from becoming an effective supervisor. European Central Bank President Christine Lagarde also criticised the Council’s position.
France pushed for stronger executive powers, challenging a provision under which nine national supervisors could require additional scrutiny of draft decisions by the watchdog’s executive board. The Irish EU presidency revised the provision to restrict delays by national supervisors and safeguard emergency action, winning support from France and most other countries.
Another dispute concerned exemptions that would keep stock exchanges outside direct EU supervision unless their trading activity and cross-border reach met specified thresholds. Germany sought to exclude Deutsche Börse; Spain’s Bolsas y Mercados Españoles would also benefit. Smaller member states criticised the exemptions as preferential treatment for larger countries.
Belgium objected because Euroclear, its Brussels-based securities depository, is expected to face direct EU supervision and supervisory fees while some major exchanges could remain nationally supervised. Germany supported a clause allowing the Commission to reconsider the exemptions two years after the rules begin to apply, though changing them would require fresh legislation.
The compromise assigns the EU budget 60 per cent of the authority’s costs not met by industry fees, leaving national supervisors to fund 40 per cent. Albuquerque opposed a significant increase in the EU contribution. The European Parliament must agree its own position before negotiations on the final legislation can start.
