The development of a more integrated capital market in Central and South-Eastern Europe is becoming a strategic priority for the countries in the region. In this context, the signing of the Zagreb Memorandum of Understanding on August 25, 2025, by the ministries of finance of eight countries, marks an important step toward enhanced cooperation.
The signatory countries are Romania, Bulgaria, Croatia, Hungary, Poland, Slovakia, Slovenia, and North Macedonia.
At ARIR members’ monthly meeting, Ms. Eliza Gereanu, Senior Expert at the Ministry of Finance, attended as a guest and highlighted the significance of this initiative:
“For the Ministry of Finance, capital market cooperation in Central and South-Eastern Europe is not merely a technical objective, but a strategic one, with a direct impact on economic development and on the region’s convergence with the European Union.”
The Memorandum establishes a framework for collaboration aimed at developing a larger regional pool of capital, increasing liquidity, and achieving better coordination in addressing cross-border challenges. The document also supports the cooperation initiative of stock exchanges in the region and emphasizes the gradual harmonization of the legislative and regulatory framework.
“Differences in listing, supervisory, or reporting requirements can generate additional costs and may limit capital mobility. Simplifying and aligning standards can reduce administrative barriers and attract larger investors.”
Integration, however, is not merely a matter of regulation. Digitalization, infrastructure interoperability, and process modernization are essential for this convergence to become a practical reality. “Integration must not remain a legal exercise, but must become a practical reality,” the representative of the Ministry of Finance emphasized. Regional cooperation also has a strategic dimension in the European dialogue. Collective action can provide the countries in the region with a stronger voice in debates concerning the Savings and Investments Union. From the Ministry of Finance’s perspective, its role is to support regional cooperation and facilitate dialogue, within the limits of its institutional mandate, including in its engagement with market participants and European partners.
To support this process, the signatory states have submitted a joint application for the European Commission’s Technical Support Instrument (TSI). The TSI provides expertise and assistance for the preparation and implementation of the necessary reforms, in a context where markets in the region still face fragmentation, limited liquidity, and underdeveloped infrastructure.
The conclusions of the intervention highlighted that formalizing cooperation through the Zagreb Memorandum, supported by European technical assistance under the TSI, can transform the region into a more integrated, competitive, and attractive investment area for investors.