What must be prioritised for the financial sector over the next five years
For the EU to maintain its competitive edge globally, the von der Leyen II Commission must focus on balancing regulatory simplification with forward-looking strategies in capital market integration, bank competitiveness, digital finance and sustainability. Despite significant growth, Europe’s financial system remains predominantly bank-centric compared with more market-oriented systems. Initiatives like the Capital Markets Union and […]
A consumer finance roadmap for the new European mandate
The credit and payments sector has been extremely dynamic over the past decade, with a plethora of legislative initiatives being unveiled at EU level to reflect this. As a new five-year political mandate is about to begin, this contribution reviews the future of consumer finance, as well as discusses the ongoing developments for credit and […]
Staying ahead of the curve
A comprehensive review of the financial services landscape is necessary for the EU to address structural inefficiencies, ensure market dynamism and support long-term economic growth. The report emphasises that while Europe’s financial system has expanded in size and complexity, and there have been efforts to diversify and integrate financial markets, progress remains uneven, with fragmented […]
Why we need to rewire Europe’s financial sector – to end fragmentation and bolster integration
If Europe wants to stay ahead of the curve and be able to follow – and eventually lead – its international counterparts, the new European Commission should have a focused agenda that balances regulatory simplicity with forward-looking strategies. This is particularly the case in capital market integration, bank competitiveness, digital finance and sustainability. Over the […]
EU cohesion policy post-2027: why and how to enhance flexibility
The EU’s recent crises and complex geopolitical landscape means the EU budget should be rethought in terms of crisis management and increasing spending demands. Despite these pressures, future Multiannual Financial Framework (MFF) discussions are more likely to focus on reallocating existing funds rather than expanding the EU budget. This situation has put cohesion policy, the EU budget’s largest spending item, […]
FiDA: is the EU prepared to move from Open Banking to Open Finance?
The EU has made significant progress to unleash the full potential of data in the financial sector. This includes the Payment Services Directive 2, establishing Open Banking, the 2020 Digital Finance Package, and the Financial Data Access and Payments Package, comprising an amendment to PSD2 (which would become PSD3), a Payment Services Regulation (PSR), as […]
Closing the gaping hole in the capital market for EU start-ups – the role of pension funds
Pension funds play a strategic role in our societies by providing protection and peace of mind to both consumers and businesses. As large long-term institutional investors, pension funds contribute significantly to the European economy’s growth and the development of capital markets. At the same time, young, small, fast-growing and innovative companies are key to Europe’s […]
Making instant and inclusive payments a reality in the EU
On 19 March 2024, the Regulation on Instant Payments was published in the Official Journal of the European Union. The generalisation of instant euro payments in the EU will lead to very relevant benefits in terms of liquidity management, market competition and convenience for users. Furthermore, it could possibly lead to an increase in public […]
Priorities of the next European Commission for credit
This ECRI Explainer explores credit policy initiatives that will be the main focus of European legislation in the 2024-29 institutional cycle. They examine Level 1 – pending files, Level 2 – implementation of files, as well as Level 3 – recommendations for future policy developments.
Priorities of the next European Commission for payments
This ECRI Explainer explores payments policy initiatives that will be the main focus of European legislation in the 2024-29 institutional cycle. They examine Level 1 – pending files, Level 2 – implementation of files, as well as Level 3 – recommendations for future policy developments.
The future of derivatives clearing – finding the right balance between efficiency and resilience?
Whereas EMIR 3.0’s main focus was geared towards the Active Account Requirement and whether or not to centralise the supervision of EU CCPs with the European Securities and Markets Authority (ESMA), regulators and market participants would be ill-advised to let discussions over third-country CCP equivalence issues and supervision of CCPs distract them from other important […]
Ten years of the SSM
European banking supervision will have been operational for ten years come November 2024. The Single Supervisory Mechanism (SSM) has evolved from a start-up to a mature, well-established, and respected supervisor. Harmonised and transparent supervisory practices have been implemented, whilst the European banking sector has proved to be resilient with strong capital and liquidity positions. Nevertheless, […]