ESMA publishes 2026 risk monitoring report and sets 2027 priorities for EU capital markets

The European Securities and Markets Authority (ESMA) today published its second risk monitoring report of 2026, highlighting that while EU financial markets have remained resilient, stretched technology valuations and heightened geopolitical tensions are testing this resilience amid persistent inflation and weaker economic growth. Additionally, ESMA released its annual Work Programme for 2027, outlining priorities for stronger, simpler, and more integrated EU capital markets, including a new supervisory focus on digital innovation from 2027, particularly concerning artificial intelligence and tokenization.