As a result of the extensive regulatory activity triggered by the Great Financial Crisis and the euro-area crisis, the area of financial services has seen a clear shift towards broad-based acceptance of primarily EU-level regulation and, to a lesser extent, also supervision. This shift remains unfinished, however. The two main areas in which greater EU integration is both necessary and achievable in the near term are banking crisis intervention and capital markets supervision. In the newer area of sustainable finance, where EU regulatory activity has been massive over the past five-year term, gaps exist that could limit the effectiveness of the framework in leveraging the power of finance behind the EU’s climate goals. 

You should address these issues forcefully, striving for consistency across the whole landscape of EU financial regulation including sustainable finance, and not giving up on completing the banking union.

Key actions:

• Capital markets supervision

• Push sustainable finance in pursuit of climate goals

• Don’t neglect banking union