Faster

The EU’s six largest economies are urging Brussels to accelerate the long-awaited integration of capital markets to “strengthen Europe’s growth potential”, according to a letter sent on Tuesday to the Eurogroup boss and several EU commissioners.

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The finance ministers of France, Germany, Italy, the Netherlands, Poland and Spain say that making tangible progress on the rebranded “Savings and Investment Union” has become an “urgent necessity,” pledging to push “this important project forward”, in a letter addressed to EU economy chief Valdis Dombrovskis and Eurogroup President.

“Deeper and more integrated capital markets would strengthen Europe’s growth potential, enhance its economic sovereignty and provide a stronger foundation for financing common priorities,” the letter said.

In particular, the ministers call on EU institutions to reach an agreement among member states by summer on one of the key elements of the capital markets integration agenda: the Market Integration and Supervision Package (MISP).

The MISP is a set of legislative proposals by the European Commission aimed at strengthening the supervision of financial market infrastructures across the bloc and improving how they operate.

“A central purpose of the package is to remove national barriers and to improve cross border distribution of investment funds, so investors have better access to the EU capital markets and companies benefit from deeper pools of capital”, the letter says.

The six countries also ask the EU to advance its digital payments agenda, specifically by promoting private pan-European payment networks that can compete with US-based Visa and Mastercard, and by accelerating the adoption of the digital euro.

Agreement by the summer

Capital markets allow companies and governments to raise funds by selling assets such as shares or bonds to investors.

To strengthen and integrate these markets across the EU, the European Commission has proposed a series of legislative measures under the Savings and Investment Union package.

In recent months, EU countries and institutions have signalled a more ambitious goal, aiming for an agreement among co-legislators on most of the SIU legislation by June.

However, EU countries are not fully aligned on the technical aspects of capital markets integration, causing delays to the broader strategic agenda.

Another key legislative proposal is the revisions of the securitisation framework, which are EU rules introduced in 2019 with the objective of ensuring safer market practices, to avoid other financial crisis such as the 2008 global shock.

The revision, which aims to simplify certain requirements and reduce high operational costs, is to be approved by autumn 2026, according to signatories.

Digital payments

The six EU countries also support the development of additional pan-European private digital payment solutions, viewed as a key pillar of the EU’s strategic autonomy, since most digital payments are currently processed through US-based infrastructures.

According to 2025 European Central Bank data, Mastercard and Visa account for 61% of card payments and nearly 100% of cross-border ones.

In this context, the six countries are also calling for an accelerated rollout of a public digital payment solution: the digital euro. Currently under negotiation, it would be an electronic form of cash issued by the European Central Bank, serving as an additional payment option alongside cash and bank-issued cards.

The project is facing significant delays in the European Parliament. In particular, the leading rapporteur on the file, the Spanish centre-right MEP Fernando Navarrete, is pushing to reduce the scope of the digital euro to offline payments only, in order to avoid competing with other private infrastructure, such as Visa and Mastercard.

“We push for swift conclusions of the legislative process of the digital euro and we invite the European Parliament to follow the Council’s approach to establish the digital euro (in both its online and offline modalities) as a comprehensive, interoperable and sovereign European payment solution for European citizens”, the six countries wrote in the letter.

The co-legislators initially aimed for full adoption of the digital euro by the end of 2026. However, due to delays in the parliament, the six countries have not set a specific adoption deadline.

Israel believes it is progressing faster than expected in achieving its objectives in the war against Iran, according to Israel’s ambassador to France.

Ambassador Joshua Zarka said the military campaign, which Israel initially predicted would last several weeks, is moving ahead of schedule in meeting its strategic goals.

Speaking to BFM TV, Zarka said Israel’s objectives extend beyond dismantling Iran’s nuclear programme. He said the broader aim is to weaken Iran’s leadership so that it can no longer project power beyond its borders and so that the Iranian population can determine its own political future.

Israel’s Broader Strategic Objectives

According to Zarka, Israel’s campaign is designed not only to limit Iran’s military capabilities but also to significantly weaken the country’s ruling authorities.

The ambassador said that reducing the government’s ability to operate abroad would help prevent attacks against Israel and its allies, while also creating conditions in which Iranians could “take their fate into their own hands.”

His comments reflect a broader strategic message from Israel that the war is intended to reshape Iran’s regional role, rather than simply eliminate specific military programmes.

Zarka, who previously served as Israel’s lead diplomat dealing with Iran, suggested that Israel’s military progress is exceeding initial expectations.

Warning Over New Iranian Leadership

Zarka also commented on the recent appointment of Mojtaba Khamenei as Iran’s new supreme leader following the death of his father, Ali Khamenei.

He said that if Mojtaba Khamenei follows the same policies as his predecessor, he could become a potential target for Israel.

The remark underscores the increasingly confrontational rhetoric surrounding the conflict and signals that Israel sees Iran’s leadership itself as central to the confrontation.

Conflict Expands to Lebanon

At the same time, Israel has intensified military operations against Hezbollah, the Iran-backed militant group based in Lebanon, after cross-border attacks on Israeli territory.

The Lebanese government has said it would like to hold direct talks with Israel to stop the fighting. However, Zarka dismissed the possibility of negotiations at this stage.

Instead, he argued that the war would end only if Hezbollah is disarmed a step he said depends on decisions taken by the Lebanese government.

Analysis: Israel Signals No Immediate Path to Negotiations

Zarka’s comments suggest Israel believes the current military campaign is producing results and therefore sees little incentive to pursue negotiations in the near term.

By framing the war’s goals around weakening Iran’s leadership and limiting its regional influence, Israeli officials are signalling that the conflict is about more than just nuclear or missile capabilities.

The remarks also highlight Israel’s strategy of confronting Iran’s regional network of allied groups, including Hezbollah, which it views as a key extension of Tehran’s power.

Taken together, the statements indicate that Israel intends to continue military pressure until it believes Iran’s ability to project influence across the region has been significantly reduced.

With information from Reuters.