Europe’s financial regulatory and supervisory framework has delivered major stability and protection gains over the past two decades but it has become increasingly difficult to operate as a coherent single-market system.
The core challenge isn’t a lack of rules, but the frictions caused by how rules are designed, sequenced and applied across borders. These frictions translate into higher fixed costs, slower time-to-market and weaker incentives to scale cross-border activity. With the EU seeking to mobilise savings more effectively, deepen capital markets and support strategic investment under its Savings and Investment Union agenda, regulatory and supervisory usability has become a first-order competitiveness issue.
This report builds on the debates stemming from the CEPS -ECMI-ECRI Task Force ‘Adjusting the EU’s regulatory process and supervisory structures’ and comprehensively examines how the EU’s regulatory and supervisory framework affects the competitiveness of its financial system – and, most importantly, what can be done to improve it.
To read a CEPS Expert Commentary that summarises the key findings of this report, please click here.
