BAKU, Azerbaijan, July 8. On July 7-8, 2025, Latvian Finance Minister Arvils Ašeradens attended the Eurogroup and Economic and Financial Affairs Council (ECOFIN) meetings in Brussels and supported the dual currency strategy within the EU digital euro framework, Trend reports.
He was accompanied by Baiba Bāne, State Secretary at the Ministry of Finance, and Līga Kļaviņa, Deputy State Secretary for Financial Policy. Key topics on the agenda included fiscal policy coordination, legal and strategic aspects of the digital euro, and Bulgaria’s upcoming accession to the euro area.
During the Eurogroup meeting, ministers discussed the eurozone's fiscal outlook, with particular attention to preparing the 2026 national budgets.
A recent report from the European Fiscal Board emphasized the unstable geopolitical environment currently facing the eurozone, which has increased uncertainty in both economic performance and fiscal strategy. Despite downward revisions in global growth forecasts, the eurozone's baseline economic scenario remains relatively resilient.
The meetings also addressed the progress of the digital euro project and its legal framework, which is part of the Single Currency Package proposed by the European Commission. The package consists of three key legislative proposals: the introduction of the digital euro as a complement to physical cash, provisions for cross-border digital euro services, and the affirmation of euro banknotes and coins as legal tender. The overarching aim is to ensure a unified and transparent legal environment for the digital euro while maintaining access to cash across the EU.
Latvia has expressed strong support for the regulation reinforcing the legal status, availability, and accessibility of euro banknotes and coins, as well as backing further progress on the legislation in the Council. Officials stressed that the digital and physical currency systems must coexist to ensure financial inclusion and security.
In a major development for eurozone expansion, the Eurogroup also discussed the European Commission’s proposal to approve Bulgaria’s accession to the euro area. ECOFIN is expected to formally adopt the required legal measures for Bulgaria to join the eurozone on January 1, 2026. Latvia fully supports this step, viewing it as a boost to eurozone cohesion and geopolitical stability. The adoption of the euro by Bulgaria would make it the 21st member of the currency union.
The ECOFIN agenda also included a first discussion on the European Commission’s new proposals to improve the EU securitization framework. Latvia supports the proposal’s goals to reduce operational costs and adapt prudential regulations to better reflect risk profiles. These reforms are expected to enhance securitization activity, particularly in smaller markets, by simplifying issuance and investment procedures.
Additional topics covered included updates on financial services regulation, Denmark’s EU Council Presidency agenda for the second half of 2025, and the economic impact of global developments. Ministers also reviewed proposed amendments to several EU Member States’ recovery plans, mid-term fiscal strategies, and exemptions under the revised economic governance framework.
The meetings further addressed the Savings and Investment Union, Europe’s economic recovery strategy, and preparations for the 2025 European Semester. This included country-specific recommendations and conclusions related to macroeconomic imbalances and progress in implementing structural fiscal reforms.
Lastly, the Council approved the EU’s policy brief for the upcoming G20 Finance Ministers and Central Bank Governors’ Meeting.