EFR Paper on Core principles for policymaking in the next European legislative cycle
06 November 2024
There is a growing consensus that Europe needs to become more globally competitive. Europe has increasingly lagged behind other global regions over the past few years on a range of indicators for growth, innovation and competitiveness.
Europe requires a policy framework that allows its companies to scale and succeed in global markets. To this end, Europe needs to:
- strengthen its business environment by reducing the complexity of reporting and streamlining authorisation processes and by making it “easier and faster” to operate businesses in the EU through “less red tape and reporting, less risk-aversion, better enforcement, and speedier granting of permits”.
- improve delivery of core infrastructure to support growth, security and competitiveness.
- complete the development of the European Single Market and prioritise delivery of an integrated market for financing by its financial services firms and capital markets, while also ensuring the various transition paths.
To deliver these outcomes, a new way of policymaking is needed. In particular:
- Greater acknowledgement of the role businesses play in fostering growth and innovation. A more open and trusting attitude to businesses needs to be instilled in EU policymaking and supervision.
- Europe’s policymaking process needs to become more agile in order to allow policymakers to deliver a competitiveness strategy and find a better balance between measures to protect financial stability and measures that enable growth and competitiveness.
The EFR proposes the adoption of three principles to make Europe more competitive and these should be taken into account when producing new regulatory proposals. These principles are not only to be applied in a financial services context, but also in cross-sectoral files like sustainability and digital policy.
Core Principles
- Consider the competitiveness of Europe’s international firms as a starting point of any regulation.
- Avoid continuous policymaking.
- When new regulation is absolutely necessary, make better use of “fast track” procedures.
EFR
© EFR - European Financial Services Round Table
