With a view on the priorities for the next European legislative cycle, a strong and competitive European financial sector is adamant. Especially in this time of transition where Europe needs to remain a global and relevant actor. A forward-looking regulatory calendar should have this aim in mind given the forthcoming horizontal and cross-sectoral regulation impacting every sector and in particular the financial services.
The EFR Future Regulation Paper gives the priorities for the next European legislative cycle:
- Making competitiveness a core and permanent factor of EU regulation making
- Rethinking European capital markets
- Avoid limiting financial capabilities of the financial sector to support both transitions
- Make the financial framework efficient for the sustainable transition
- Digitalisation: allow for innovation, using best-in-class providers, and focus on AI and innovative technology to integrate financial services on an equal footing in the future interconnected world.
- Tackling ageing and demographic social issues
Europe is currently at cross-roads at a time when the region needs to reinvent itself to remain a global player across all fronts. The financial sector stands at the heart of this reinvention in supporting all clients through the various transition paths, whether that is creating a more sustainable business model, diversifying supply chains or assisting clients with their own digital footprint.
For Europe to remain a global player and achieve all transitions we need a strong and stable financial sector. This objective should be included in the next EC mandate by making competitiveness a central factor in its rule making process, by truly creating deeper EU capital markets that support a wider range of funding options, by ensuring that the regulatory framework supports the ability of EU market participants to deploy their activities abroad and by creating more funding flexibility in the existing financial sector frameworks.
In addition, Europe should take time to design regulatory frameworks that determine the future of Europe as a whole, of its place at the global level. This especially focuses on all policies related to AI, data usage and payment services.
Getting this framework right is essential as the needs for Europeans will change significantly with an ageing population. The framework that the next European Commission will put forward should tackle challenges for the next 30 years.