European finance ministers approve the strengthening of ESMA, the new supervisor of stock markets

European finance ministers, meeting on Friday in Luxembourg, approved strengthening the European Securities and Markets Authority (ESMA), in an agreement considered essential for the integration and competitiveness of the European economy. Belgium was the only country to abstain.

The reform will expand the powers of ESMA, an institution based in Paris that currently has mainly a coordinating role. The authority will directly supervise the main players in the financial markets, including trading platforms, clearing houses, securities depositories, and participants in the cryptocurrency market.

The agreement represents a compromise between France and Germany. Berlin secured the exclusion of the Frankfurt Stock Exchange operator, Deutsche Börse, from ESMA’s remit, while Paris strongly supported the centralization of supervision. Ireland and Luxembourg initially opposed the plan, fearing its effects on their financial sectors, but Dublin has contributed in recent months to negotiating the solution.

The European Commission presented the reform at the end of 2025 as part of the “Savings and Investments Union” project, aimed at mobilizing European savings and financing companies.

The reform is not yet final. The member states must negotiate the final form with the European Parliament, and Brussels wants it adopted by the end of the year.