The European Commission has adopted a major package of measures aimed at removing barriers in the EU’s financial markets and unlocking the full potential of the single market for financial services. This initiative, a key component of the Savings and Investments Union (SIU) strategy, seeks to create a more integrated, efficient, and competitive financial system that offers EU citizens better opportunities to grow their wealth and supports businesses in accessing funding.
EU financial markets remain fragmented and less competitive than global peers, with differing national rules complicating cross-border activity. In 2024, the market capitalisation of EU stock exchanges was 73% of GDP, compared with 270% in the United States. The Commission’s reforms aim to address these structural challenges by simplifying the regulatory and supervisory framework and removing barriers across trading, post-trading, and asset management.
The package enhances cross-border operations by streamlining licensing, reducing cost disparities, and improving access for investors and businesses across all Member States. It also encourages innovation, particularly in distributed ledger technology (DLT), by providing legal certainty, proportionality, and flexibility.
Supervision of the sector will be strengthened, with oversight of significant market infrastructures and all crypto-asset service providers transferred to the European Securities and Markets Authority (ESMA). ESMA’s coordination role in asset management will also be enhanced, ensuring consistent and effective supervision across the EU.
Maria Luís Albuquerque, Commissioner for Financial Services and the Savings and Investments Union, highlighted the importance of the reforms: “By building a real Single Financial Market, we will give people better opportunities to grow their wealth, and we unlock stronger financing for Europe’s priorities. Market integration is not a technical exercise — it is a political imperative for Europe’s prosperity and global relevance.”
The proposals will now be negotiated and require approval from the European Parliament and Council, with the Commission stressing that preserving the integrity of the package is crucial for creating a truly competitive EU financial market.