Interim Finance Minister Alexandru Nazare is attending the Economic and Financial Affairs Council (ECOFIN) meeting in Luxembourg on Thursday and Friday, where current economic and financial challenges, the impact of developments in energy markets and the coordination of fiscal policies at European level will be discussed, according to a Finance Ministry release.

The discussions will cover, among other issues, managing the impact of the war in Ukraine on the European economy, as well as coordinating structural policies at European Union level, the quoted source said.

According to the Finance Ministry, Alexandru Nazare will attend the regular format Eurogroup meeting on Thursday, bringing together economy and finance ministers from all EU member states, including countries that are not part of the euro area.

For Romania, the main topics of interest are capital market development, improving the efficiency of public finances and the impact of developments in energy markets on competitiveness and costs across the economy.

On Friday, the interim Finance minister will take part in the official sessions of the ECOFIN Council, whose agenda includes the competitiveness of the EU banking sector, energy competitiveness, Europe's economic recovery and the implementation of the Recovery and Resilience Facility (RRF).

With regard to the banking sector, the discussions will focus, according to the Finance Ministry, on 'supporting an integrated and competitive banking market, improving access to finance and simplifying the regulatory framework.'

The Ministry underscored the importance of maintaining financial stability in countries that are not part of the Banking Union.

'For the states outside the Banking Union, such as Romania, it is important to maintain a balance between the interests of the home and host states, as well as adequate capital and liquidity requirements at the level of legal entities, to safeguard financial stability and reflect the specific nature of exposures to government securities,' the release informed.

Another item on the ECOFIN agenda is energy competitiveness, with discussions set to focus on electrification, the development of grids and interconnections, as well as maintaining the temporary and targeted nature of short-term measures.

Regarding Europe's economic recovery, the ministers will review the implementation of the Recovery and Resilience Facility.

The discussions will include 'an assessment of the state of implementation, ongoing payments and the findings of the European Court of Auditors on the effectiveness of investments,' the Finance Ministry said.

Furthermore, the European Semester 2026 will also be reviewed at the meeting. The discussions will include 'the presentation of the main lessons learned from the current cycle, the timetable for future packages and the state of implementation of country-specific recommendations,' according to the release.

Another item on the meeting's agenda is the implementation of the European Union's economic governance framework.

In this context, discussions will tackle 'the adoption of Council recommendations on medium-term fiscal-structural plans (such as that of the Czech Republic) and the extension of the application of the national escape clause for Greece.'

Ministers will also discuss public finance efficiency and the Capital Markets Union, with an emphasis on 'options for optimising public spending, the report on tax gaps (Mind the Gap) and progress made under the Savings and Investments Union.'

On the sidelines of the ECOFIN meeting, interim Finance Minister Alexandru Nazare will hold a series of bilateral meetings to discuss issues of common interest on the European agenda and strengthening public finances. AGERPRES (RO - writing by: Nicoleta Banciulea; EN - writing by: Rodica State)